@Iain
I have a UK Ltd Co and work for a US company. I'm a subcontractor of their's and I've signed a declaration to that effect. I don't have to do any of the W8 blah blah stuff you mentioned.
The company don't have to fill in a tax return to account for their payments to you. You send them an invoice. They pay it. End of. It's a B2B relationship.
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Complex, or not? - I'm still trying to find out!
I've been doing this since the middle of last year. Business development for a US company, paid a retainer plus commission on a contract basis.
My assumption was that, being wholly resident in the UK, and carrying out 100% of my duties in the uk, I would not be liable to pay US tax.
However, the company have to complete a tax return, and in order to account for their payments to me properly, are actually supposed to withhold 30% of my fees for US income tax purposes. To prevent this, they need me to file a US IRS form W8 "Certificate of foreign status of beneficial owner for US Tax withholding" with them.
Fine, no problem - there's a US/UK tac treaty etc. so that all seems ok, until I start to fill in the W8....
to complete the W8, i need an Individual Tax Identification number (ITIN),
To get an ITIN, I need to send off a W7 to apply for one.
I can only get an ITIN if I've been turned down for a US Social Security number, so I have to apply for one of those, so I can attach the rejection letter to the W7 (along with a notarised copy of my passport, my contract and an IRS form 8233, completed and signed by me and by the US company....).
I think.
I've taken legal advice and this appears to be the case. It's definitely what I would have to do if I were working for them IN the US as a resident alien, I'm just really surprised that it's the same even though I'm not in the US
I'm doing this as a self employed person, but if I were under a Ltd umbrella, the process would be the same, except more forms would be involved.
If anyone out there knows differently, and can point us to some good advice, it would be gratefully received!
and by the way having read other posts / threads, I don't need advice on insurance, setting up companies etc, thanks. Just advice on this specific issue would be good.
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Standard isues are around ensuring all the correct visas are in place for travel, and that you have appropriate insurances in place. the US is extremely litgious, and the standard UK contractor insurance oferings normally exclude work done for US clients.Leave a comment:
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Contracting for a US company from the UK
I have recently been made redundant and am using this as an opportunity to enter the world of BA/PM contracting.
My ltd. company's first offer of contract work may come from a company based in the US that has no UK (or EU) offices. I will be working from home in the UK the vast majority of the time, and traveling to the US for the occasional week/fortnight for meetings. I am a UK citizen who has never worked in the US or for a US company before.
Has anybody else been in this position before? Are there any important considerations that I should take into account when working from the UK for a US company? Any links to previous threads, or words of wisdom would be much appreciated!
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