Reply to: USA remote contract UK ltd

[Platypus]

Hi PSB, sending you a PM.

[SuperLooper]

My US client is small enough that the IR35 changes wouldn't apply anyway - I make my own determination - but even if the client were huge, HMRC has no jurisdiction over them.

[WordIsBond]

If I have understood the IR35 thing properly, clientco in the USA should make an IR35 determination - however I doubt they know about it - and I don't think it's really a good idea to stir up that hornet's nest - what's anyone else planning for post April?

I'm keeping my IR35 insurance in place, contract reviews, keeping IR35 dossier supporting outside determination, etc, as always. I'm assuming, whatever draft legislation may say, that MyCo is going to end up being held responsible for determination. If they've made a mess of it starting from April it's likely to be fixed a year later.

[jamesbrown]

If I have understood the IR35 thing properly, clientco in the USA should make an IR35 determination - however I doubt they know about it - and I don't think it's really a good idea to stir up that hornet's nest - what's anyone else planning for post April?

Sit back and enjoy the show

[Peoplesoft bloke]

If I have understood the IR35 thing properly, clientco in the USA should make an IR35 determination - however I doubt they know about it - and I don't think it's really a good idea to stir up that hornet's nest - what's anyone else planning for post April?

[d000hg]

I've worked with some US and such companies. Typically less hassle - I would suggest your chance of getting any unpaid monies is very low working direct though. Factor it in and be cautious.

I've worked in dollars and pounds, or set a rate in pounds and converted it to dollars based on the rate at invoice date.

One tip is to ensure they pay all fees for sending international payments, and check the amounts received match what is expected. Some banks are not very helpful so it can be easy to mess up.

[Manic]

I used HammondPI when I was doing the same.

[jamesbrown]

Not a US citizen and no requirement to travel for the gig - but thanks.

Should be straightforward then. If you need PII for the US, try Randell Dorling, but it would be better to have UK jurisdiction with the governing law of England and Wales.

[Peoplesoft bloke]

That would’ve been a W8-BEN but, yeah, similar. You also complete one if you hold US stocks/shares. There’s no US withholding on a non-US source payment to a non-US person (jargon, but that probably includes your situation).

You won’t be able to do any consultancy in the US without a visa/GC/citizenship, but I hope for your sake you don’t have the latter.

Not a US citizen and no requirement to travel for the gig - but thanks.

[jamesbrown]

Thanks all - I have completed a W8-BEN-E in the past - when I was a permie in the UK working for a US company so it's not entirely unfamiliar.

That would’ve been a W8-BEN but, yeah, similar. You also complete one if you hold US stocks/shares. There’s no US withholding on a non-US source payment to a non-US person (jargon, but that probably includes your situation).

You won’t be able to do any consultancy in the US without a visa/GC/citizenship, but I hope for your sake you don’t have the latter.

[Peoplesoft bloke]

Thanks all - I have completed a W8-BEN-E in the past - when I was a permie in the UK working for a US company so it's not entirely unfamiliar.

[jamesbrown]

VAT is based on place of supply rules. You should check them. That said, if it’s a B2B supply and your customer is in the US, then it will be outside of the scope of UK VAT. Write that on the invoice.

I charge in both - whatever the client wants. I used to require GBP, but I don’t really care anymore as companies like TransferWise have made multi-currency payments effortless.

PII is doable with US federal/state law, but more expensive.

I’ve had more problems with European clients than NA clients, TBH, but that’s nothing more than an anecdote.

They may ask you to complete a W8-BEN-E, but don’t bother unless they do.

[eek]

Do you charge VAT (I am VAT reg but doubt the US client can reclaim VAT and I also doubt they are subject to it).
Do you invoice in Dollars or GBP
Are they decent payers?
Any top tips (thanks for the insurance one)?

1) No you don't charge VAT as it's an export.
2) It will be dollars americans can't cope with anything else

3 and 4 I can't answer as I do software rather than consultancy (and I'm rapidly working on moving the american side of things to a separate US company).

[Peoplesoft bloke]

Do you charge VAT (I am VAT reg but doubt the US client can reclaim VAT and I also doubt they are subject to it).
Do you invoice in Dollars or GBP
Are they decent payers?
Any top tips (thanks for the insurance one)?

[jamesbrown]

Yes, what do you want to know?