Working for a USA Client from UK - Business or Personal Bank Account

[sadkingbilly]

So you keep telling us.

maybe repeating it often enough will get through to even 'developer' or <insert fancy title> 'manager' brains then.

[willendure]

I got a contract offer from a company in USA and they have no company here in UK.
So they will be using a portal called - deel.com for making payments and this company will take care of the Payroll, taxes etc.

Client mentioned the amount i receive will be before tax.

1. Can i give my personal bank account for receiving the payments or i have to give LTD company Business Bank account?
2. If i give my Personal Bank account do i have to pay Taxes in UK for the amount i am receiving from US?

Thanks.

I would go back to the client and ask if they would let you bill as a uk ltd instead of going through deel.com and getting hit with PAYE. Then you would have a sweet deal - salary in dollars and a solid get out for IR35, since they have no uk company. The worst they could do is say no - and maybe they will be happy to say yes as it simplifies things for them too, and should cost them the same.

It does not seem to me that deel adds any value to either party, unless you client has lots of uk contractors and sees deel as a convenient system to hide the complexities of uk taxation from them.

[fatJock]

my first freelance gig was in 1974.

So you keep telling us.

[sadkingbilly]

This is a contracting web site and a contracting forum, for 'contractors' to discuss things. I'd say the vast majority of contributors have come from the pre-IR35 Reform world and hence, regard a 'contract' as being something 'outside IR35', billed on a daily or hourly rate and invoices sent in for payment. If YOU don't share that view, then maybe you're not a contractor at all, or ever was?

my first freelance gig was in 1974.
and i do proper work, - not 'manager' tripe.

[oliverson]

yet another self appointed speaker for all.

This is a contracting web site and a contracting forum, for 'contractors' to discuss things. I'd say the vast majority of contributors have come from the pre-IR35 Reform world and hence, regard a 'contract' as being something 'outside IR35', billed on a daily or hourly rate and invoices sent in for payment. If YOU don't share that view, then maybe you're not a contractor at all, or ever was?

[sadkingbilly]

Doesn't sound much like a contract to me, in the sense of how we generally consider contracts to be on this board.

<yet more 'aren't i wonderful' stuff - TL: DR>

yet another self appointed speaker for all.

[oliverson]

Doesn't sound much like a contract to me, in the sense of how we generally consider contracts to be on this board.

I recently finished up a contract with a US client. I invoiced them in USD (no VAT) and they paid my invoices in USD into a 'US Dollar' add-on account I could add to my Starling business account, costing a fiver a month. Sure, there's a commission to pay when moving those dollars from the USD to GBP account with Starling but that was more than offset by the strength of USD to GBP throughout most of my contract. Looking back it was very fortunate because at the outset we were talking day rate in GBP and we agreed a figure, which they then converted to USD for the contract. Shortly after, GBP lost strength to USD and at one point I was getting probably close to £ 200 a day more than I'd bargained for!! Dreamland. Only once did it go in the opposite direction.

[Eirikur]

Will they pay in USD? in that case get a multi currency account from wise: https://wise.com/invite/dic/erikk33

[Sue B]

Thanks Eek

Yeah, as has been suggested, if Deel are onboarding you, with them as the Employer of Record, then they should be handling the UK PAYE deductions for national insurance and income tax, and your net salary can be paid into your personal bank account. Deel should be able to provide an example payslip, with the gross quoted to you by the client, and showing the deductions for Employees NI and income tax and expected net pay. Make sure these look right.

Also, be careful that you aren't being onboarding as Self Employed/Independent Contractor, as this would suggest that the income you receive is gross, which means you will have to account for your own tax and NI. This may be preferable to you, I don't know, but you definitely need to know your employment status before you sign anything.

Please do drop me a message if you want to run through the offering.

[vwdan]

It looks like the "Deel" selling point is that they'll sort out local taxes, which will imply they'll pay PAYE tax.

Personally, I'm very iffy about such claims - I realise it's what they advertise as a service, but to say international tax and employment is non trivial would be an understatement. The only way they can really do this properly is if they act as an Umbrella, and employ you - perhaps that is what they'll do. And you should have all your statutory rights - same as a brolly employee.

It all sounds a bit too good to be true, and cheap, though for that (From a buying their services POV)

But on the face of it, it sounds like they expect your personal bank details and you be paid as a UK employee. I would exercise caution and ensure you, and they, fully understand the position though

[eek]

Speak to Sue B she really is the dozer on this stuff.

[WTFH]

I got a contract offer from a company in USA and they have no company here in UK.
So they will be using a portal called - deel.com for making payments and this company will take care of the Payroll, taxes etc.

1. Can i give my personal bank account for receiving the payments or i have to give LTD company Business Bank account?
2. If i give my Personal Bank account do i have to pay Taxes in UK for the amount i am receiving from US?

Thanks.

You state that they will "take care of Payroll, taxes, etc" IF that is true, then you could be paid into your personal bank account, you are an employee and everything is PAYE.

The problem is that contractors and taxation in the US are different beasts to the UK, and you would be best to speak to someone who can review your contract and advise you on the best way forward. Without having all the details here, most of us will be guessing at answers. Even with all the details, we'd still be guessing.

[Manijava]

I got a contract offer from a company in USA and they have no company here in UK.
So they will be using a portal called - deel.com for making payments and this company will take care of the Payroll, taxes etc.

Client mentioned the amount i receive will be before tax.

1. Can i give my personal bank account for receiving the payments or i have to give LTD company Business Bank account?
2. If i give my Personal Bank account do i have to pay Taxes in UK for the amount i am receiving from US?

Thanks.