UK national working as a Ltd Co. with US client

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drsnooze replied

2 March 2018, 13:39
Great!

Thanks very much for the confirmation! that puts my mind at rest
The CFO will be pleased that I stop asking stupid questions.
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WordIsBond replied

2 March 2018, 07:49
Originally posted by jamesbrown View Post

It's the client's duty to inform you of anything they need to support their filing requirements.

<snip>

There is no withholding for non-US source income of a non-US "person".

Exactly.

Emphasis added just in case OP missed the key points.
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jamesbrown replied

1 March 2018, 20:57
Originally posted by drsnooze View Post

I'm just looking to get a clear answer on this as I've searched everywhere and not found anything concrete.

I am a UK national who is a director and sole employee of my Ltd company and one of my main contracts is for a US company.

What I would like to know is:

Should I or the client need to fill in any forms to notify the IRS that I(my company) pays tax in the UK and so there are no taxes to be paid in the US.

I understand that because I pay UK taxes and never do any work on US soil, so I shouldn't have to pay any US taxes or complete a US tax return.

Some one suggested to me that there is a form that the client should have asked me to complete with my tax details so that they can tell the US authority.

I'm just a little concerned that one day the IRS is going to say to the client, where's all the tax from this contract?
Thanks for any help!

It's the client's duty to inform you of anything they need to support their filing requirements. Incidentally, they don't need to file anything with the IRS, but they may ask you to complete a W8-BEN-E for their records. The "E" designates "Enterprise", i.e. completed on behalf of YourCo.

If they do ask you to complete this, it actually requires minimal input, but you should seek advice on how to complete it correctly.

You are correct that there is no withholding requirement (in all likelihood). There is no withholding for non-US source income of a non-US "person". Just ensure that YourCo is indeed completing the work in the UK, and not partly in the US.
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northernladuk replied

1 March 2018, 20:42
https://www.google.co.uk/search?ei=l....0.d5ZLiEh5At0
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drsnooze started a topic UK national working as a Ltd Co. with US client

1 March 2018, 18:04
UK national working as a Ltd Co. with US client

I'm just looking to get a clear answer on this as I've searched everywhere and not found anything concrete.

I am a UK national who is a director and sole employee of my Ltd company and one of my main contracts is for a US company.

What I would like to know is:

Should I or the client need to fill in any forms to notify the IRS that I(my company) pays tax in the UK and so there are no taxes to be paid in the US.

I understand that because I pay UK taxes and never do any work on US soil, so I shouldn't have to pay any US taxes or complete a US tax return.

Some one suggested to me that there is a form that the client should have asked me to complete with my tax details so that they can tell the US authority.

I'm just a little concerned that one day the IRS is going to say to the client, where's all the tax from this contract?
Thanks for any help!
Tags: us tax irs