markandrose

Hi all looking for some advice!
I am a UK resident with a US greencard currently living in US.
I have been working in the US for 10years.
I hope to sell my house in the US and return to UK and by a house
I hope to remain working for the US company while living in the UK travelling to US for 2 weeks every 3 month's
Will I pay tax in both UK and US while working for US company and living in the UK.
Is there anyone that has a similar situation?
Not sure whether it would be advisable to continue as an employer for the US company or to be self employed and work as a subcontractor.

Thanks
Mark

rebeccajo

Have you become an American citizen? If so, you are liable for US taxes on your worldwide income forever, no matter where you live. Even if you are not a US citizen, you are bound to the US tax system for a while because you've been resident in the US.

U.S. Citizens and Resident Aliens Abroad

There is a tax treaty between the US and the UK which will exclude a good portion of your income from US taxation. The amount changes nearly every year and at present is somewhere in the neighborhood of $93,000.00.

https://americansabroad.org/issues/t...ng-abroad-faq/

Switching from an actual US employee to a sub-contractor won't change your tax obligations. But it may have other advantages to you. You'll likely need expert advice to figure that out.

There are loads of expat voices in this community who'll likely come into this thread to tell you more.

robin1234

Just a preliminary stab at a couple of your potential issues.

You say you currently have a green card. Have you considered becoming a US citizen before you leave and become a resident of the UK? Because as a US resident alien, you can only retain that status if you are resident in the US.

Tax. Whether your employer is a US company or a British (or other) company doesn't affect your tax obligation. Living and working in the UK, you'll primarilly be a British taxpayer. As rebeccajo points out, you'll also have US tax obligations (lifetime, if you become a US citizen.)

Pulaski

Becoming a US citizen would certainly remove most of the awkward questions from the immigration officer when you return to the US for those two week visits (after your permanent residence status has expired) and/ or eliminate the need for a visa.

MarylandNed

I agree that obtaining US citizenship is going to make your frequent trips back to the US much easier. Not just in terms of getting into the US but also in terms of the type of work you are allowed to do while there (business visitors are restricted to certain activities such as meetings, conferences, etc). Obtaining US citizenship also means you'll be liable to file a US tax return but you shouldn't be double-taxed as you can claim tax paid in the UK as a tax credit on your US tax return.

nun

I'm dubious about you being a UK resident if you've lived and worked in the US for the past 10 years....do you mean UK citizen? It sounds as if you are a UK citizen, permanently resident in the US

I would sell the house before you leave for the UK to avoid any possibility of UK tax liability and simplify taxation.

If you stay working for the US company while living in and working in the UK you will have lots of problems. Your employment must conform to UK law when it comes to holidays, sick leave, parental leave etc. You will pay NI and not be liable for FICA....can your US company do that? What about retirement accounts. Basically unless the US company can employ you through a UK subsidiary its a non-starter.

No (assuming you are not a US citizen) as a UK resident working in the UK you are only liable for UK income tax, so working directly for a US company becomes problematic as no US income tax or FICA should be withheld.

Self employment is usually simpler, but make sure you meet the criteria to be self-employed for HMRC.....