Freelance software developer to USA company

[lian]

Hi,

I'm looking to offer my services as a software developer to a US company, for a long term period, for which, they are looking to pay me a fixed sum each month.

Can anyone tell me the best way I can formalise this, with regard to showing a proper income?

What I mean, is I wish to appear to be 'employed' as best as possible by this firm and do whatever is required to facilitate this.


Kind regards,

L

[woohoo]

You should get a cowboy hat.

[TheCyclingProgrammer]

You could:

a) register as self-employed if the US client is willing to engage you that way. There's no risk to you AFAIK as IR35 doesn't apply to the self-employed, and probably low risk to the client if they have no UK presence. Possibly not the most tax efficient for you but simple.

b) work through an umbrella. Not tax efficient, but risk free all around and simple.

c) work through your own Ltd company. From the way you describe it there's a chance it would be caught by IR35 so probably not the best option (although some would argue the client being US-based makes it much harder for HMRC to make a case stick if your contract is decent).

d) I believe there is some form of PAYE scheme you can operate on yourself for foreign employers but I can't find the details for this on Gov.uk

As I assume your US-based client will want the most hassle free solution that doesn't expose them to any UK tax liabilities they will probably be happiest for you to be treated as self-employed and you deal with all tax/NIC through self-assessment (option A above).

[woohoo]

You could:

a) register as self-employed if the US client is willing to engage you that way. There's no risk to you AFAIK as IR35 doesn't apply to the self-employed, and probably low risk to the client if they have no UK presence. Possibly not the most tax efficient for you but simple.

b) work through an umbrella. Not tax efficient, but risk free all around and simple.

c) work through your own Ltd company. From the way you describe it there's a chance it would be caught by IR35 so probably not the best option (although some would argue the client being US-based makes it much harder for HMRC to make a case stick if your contract is decent).

d) I believe there is some form of PAYE scheme you can operate on yourself for foreign employers but I can't find the details for this on Gov.uk

As I assume your US-based client will want the most hassle free solution that doesn't expose them to any UK tax liabilities they will probably be happiest for you to be treated as self-employed and you deal with all tax/NIC through self-assessment (option A above).

No mention of the cowboy hat.

[TheCyclingProgrammer]

No mention of the cowboy hat.

d) get a cowboy hat