UK contractor working in UK for US based company : advice needed

[Platypus]

But to return to the original point, if you are considering doing this, limited company is definitely the way to go.

Interesting. In the past I've said that "I work for ClientCo company and am here to attend training"

Although in my case, ClientCo is a large American outfit, not a UK company that no-one will have heard of.

Nor have I declared that I am a contractor for ClientCo, but I wouldn't deny my contractor status if asked.

I'm (hopefully) back in the US in April for a week's training and plan to say the same as I've always said.

I gave up carrying MyCo business cards years ago, I don't think I've handed one out in 10 years!

[gnarlycoder]

Some lessons learned the hard way

Yes absolutely right James, you can get training but not give it. Two people were being sent back for this while I was there. They had been sent by their companies who should have known better.

I kinda walked into this one because I worked for HP for a long time and used to have to travel to the US frequently. Then HP seemed to act like a magic password that led to no further questions. But this time the border control people seemed to think I had been lucky because there are very strict definitions of what you can and can't do. Anybody travelling to the states on business needs to know these definitions. My boss at HP at the time did talk about "maxing about my business travel" but I managed to dodge that one. Having done some research now (a bit late) I realise this is a very bad approach and likely to get you in trouble. So don't rely on your company or client to keep you out of trouble.

The big problem, as you rightly point out, is once this has happened, it's a lot more difficult to get in.

But to return to the original point, if you are considering doing this, limited company is definitely the way to go.

Ouch, yes. I'm afraid that, if you weren't allowed entry this time, you won't be able to gain access under the Visa Waiver program in future. Essentially, you need to review the terms of the visa waiver before travel, which means not doing any type of "productive work" (including delivering training, actually - participating is fine). The same conditions apply to a B-1 visa. You can attend meetings without issues, but you should, indeed, take proof of your status, including the nature of the meeting and a letter of invitation, as well as details about YourCo. Sorry you learned the hard way.

[DirtyDog]

Ouch, yes. I'm afraid that, if you weren't allowed entry this time, you won't be able to gain access under the Visa Waiver program in future. Essentially, you need to review the terms of the visa waiver before travel, which means not doing any type of "productive work" (including delivering training, actually - participating is fine). The same conditions apply to a B-1 visa. You can attend meetings without issues, but you should, indeed, take proof of your status, including the nature of the meeting and a letter of invitation, as well as details about YourCo. Sorry you learned the hard way.

+1 Don't lie at the border, either - if you are there to do work and they catch you, they will deport you. If you are there to do work, and you lie, and they catch you, they will deport you and ban you from returning.

Attending meetings is fine, but be prepared to argue your case if necessary. You are there to provide an update and then will be going home - nothing else.

Whether you could argue that your are a project manager, therefore incapable of "productive work" is another matter.

[jamesbrown]

I just learned some lessons about this the hard way. If you go to the US to visit the client you need to be very careful. Then it is much safer to have a LTD company. Sole trader will not cut it with border control. You need business cards to prove you are a legitimate business. Look at the US Embassy website and acquaint yourself with the business activities you are allowed to engage in on a non-immigrant business visa and make sure you comply with this. Limit the time you stay the US as much as possible e.g. a week not two. Consider getting a letter from the company about exactly what you will be doing in the US (e.g. training) perhaps with an itemized schedule. Make sure you pay for the flight and the hotel. If in doubt, consult an immigration lawyer before travelling.

If anyone else has any advice about working remote I would be very interested to here it. Personally i would prefer to be on site with a proper temporary visa but it doesnt look like the US government is going to issue some any time soon even with all the current vacancies in silicon valley.

Ouch, yes. I'm afraid that, if you weren't allowed entry this time, you won't be able to gain access under the Visa Waiver program in future. Essentially, you need to review the terms of the visa waiver before travel, which means not doing any type of "productive work" (including delivering training, actually - participating is fine). The same conditions apply to a B-1 visa. You can attend meetings without issues, but you should, indeed, take proof of your status, including the nature of the meeting and a letter of invitation, as well as details about YourCo. Sorry you learned the hard way.

[gnarlycoder]

some hard learned lessons

I just learned some lessons about this the hard way. If you go to the US to visit the client you need to be very careful. Then it is much safer to have a LTD company. Sole trader will not cut it with border control. You need business cards to prove you are a legitimate business. Look at the US Embassy website and acquaint yourself with the business activities you are allowed to engage in on a non-immigrant business visa and make sure you comply with this. Limit the time you stay the US as much as possible e.g. a week not two. Consider getting a letter from the company about exactly what you will be doing in the US (e.g. training) perhaps with an itemized schedule. Make sure you pay for the flight and the hotel. If in doubt, consult an immigration lawyer before travelling.

If anyone else has any advice about working remote I would be very interested to here it. Personally i would prefer to be on site with a proper temporary visa but it doesnt look like the US government is going to issue some any time soon even with all the current vacancies in silicon valley.

[northernladuk]

He hasn't logged in since March 2012 so I think you are going to be waiting awhile for a response.

[firstforte]

Hi someguy1,

I am now in the same situation you were in, and would love to know how you got on.

I have a company who would be prepared to sponsor my H1B visa, but owing to the time of year and current quota being complete, this will not be possible until next February.

I was thinking of setting up an Ltd, and working as a consultant. And the US based firm contracting my services whilst being based in the UK.

Is this what you did?

[someguy1]

"On a brighter note, I have no idea why your UK income should be considered taxable in the US."

That is good news

Thanks for the advice

[paulbeare]

UK Contractor working for US based company

So, you are not going on their payroll?
That means that they mean to treat you as independent, and avoid the Employers NI.
And avoid giving you the employment protections that apply to employees – and effectively have instead the US Employment at Will rules applying over here.

Get the contract checked by a lawyer, or a firm of UK accountants specialising in this area (like ourselves www .kevinbeare.com).

If independent, You can either be self employed, and personally liable for any risks (like someone falling over your brief case or computer etc, and suing you), or trade through a limited company – which carries a measure of protection – but is no substitute from proper insurance(professional indemnity or employers liability etc). Incidentally those insurance costs would also be borne by the US company of you were their employee.
Yes, IR 35 might be an issue, but again you need to check the terms of the contract, which may have been drawn up by a US law firm with no regard for the complexities of English taxation. Working inside your company was exactly why the IR 35 legislation came in. Using someone else’s umbrella company is possible for a cost but with no guarantee that it will not be challenged by HMRC.
Oh, and don’t forget VAT – If your turnover: remuneration, bonuses/commission, car allowance private medical premium reimbursement if included, and Expenses reimbursed should reach £70,000 then you must register for UK VAT.

On a brighter note, I have no idea why your UK income should be considered taxable in the US.


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[BlasterBates]

Yes agree with the above, you're very "un"IR35. You're using your own equipment, no working hours , no holiday, I mean the client won't even realise you're on holiday will he really as long as you have a blackberry, and the final nail in the coffin, an HMRC inspector won't even be able to begine to enquire with the client, not without approval from the FBI.

Nope just check your contract, which I can't imagine is IR35.

[someguy1]

Thanks for the response

I'm a bit wary about the whole IR35 thing, being a newb to all this I don't want to do any fancy messing about with that area just yet. I heard somewhere that the government are supposed to be making the IR35 thing a lot clearer to navigate sometime early next year so hopefully I can have another look into it then.

[SueEllen]

Why don't you get the contract checked out by a lawyer before you sign it?

As you are working at home in the UK the US based client can't really have any direction and control over you. Plus would probably be very happy not to pay you if there is no work for you to do.

The lawyer could then do a redraft so it doesn't fall into IR35 which both you and the client will be happy with.

[someguy1]

Hi

I'm a first time contractor and about to sign a contract to work for from home (UK) for a US based firm.

Looking around on t'internet a bit it looks like I'll fall inside of IR35 so is my only option to use a umbrella company or are there any other alternatives?

Plus I've read that I may have to pay tax in the US as well as the UK, is this correct, if so how do I go about doing this and will this mean I'll have to pay twice?

Does anyone have any experience / advice about this situation?