Go Back  British Expats > Living & Moving Abroad > Moving back to the UK
Reload this Page >

Live in UK but work remotely for US Employer

Live in UK but work remotely for US Employer

Reply

Old Jun 14th 2018, 5:04 pm
  #1  
Just Joined
Thread Starter
 
Joined: Nov 2017
Posts: 27
tusitala is an unknown quantity at this point
Question Live in UK but work remotely for US Employer

I have worked for a small utility in Washington State for 17 years and plan to move back to Scotland soon

My company would like to have me work for them remotely for a limited period but are very nervous about having someone on the payroll in another country

I wondered if they could just continue to pay me as if nothing had changed with my pay deposited into my US bank account as now, with all state and federal deductions intact.

Since this is for a limited period, I really don't want to deal with other options like self employment etc.

Before you ask

I am a UK and US citizen so there are no issues about permission to work in either country

All federal deductions could continue unchanged, FICA, Social Security, Medicare etc.

Washington state has no income tax, other state deductions are minimal and can continue

I can pay UK PAYE if required

If I do this I will not be seeking employment in the UK (I was planning to retire)

I do not expect to try to claim any business expenses for working from my home

My employer may be willing to continue my employee medical coverage if necessary

Period could be from six months to two years

I may depart after the start of next year meaning I may have legally worked in the US during that tax year if that makes any difference

I am not looking to avoid anyone's taxes or do anything illegal or off the books, just help my employer out and make a few bucks towards retirement

Anyone have any opinions on this?
tusitala is offline  
Reply With Quote
Old Jun 15th 2018, 11:02 am
  #2  
BE Enthusiast
 
Joined: Apr 2011
Location: The Shire
Posts: 981
theOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond reputetheOAP has a reputation beyond repute
Default Re: Live in UK but work remotely for US Employer

Originally Posted by tusitala View Post
I have worked for a small utility in Washington State for 17 years and plan to move back to Scotland soon

My company would like to have me work for them remotely for a limited period but are very nervous about having someone on the payroll in another country

I wondered if they could just continue to pay me as if nothing had changed with my pay deposited into my US bank account as now, with all state and federal deductions intact.

Since this is for a limited period, I really don't want to deal with other options like self employment etc.

I am not looking to avoid anyone's taxes or do anything illegal or off the books, just help my employer out and make a few bucks towards retirement
If the work is done in the UK, then the primary taxing authority is HMRC. If you work as a US employee while in the UK, then the US employer will have significant responsibilities to adhere to UK employment standards. From your post, I would guess they would prefer not to do this.

Your option is to become a 'sole trader' (self employed) in the UK. However your situation is handled, you must pay any UK tax due to HMRC first. As a US citizen, you will also have to file a US tax return every year whether employed or retired. If you are self employed, then you may (age?) also be responsible for NIC payments as well. If you do not wish to become self employed and your employer does not wish to absorb UK employment laws, I'm afraid there are really no other choices (and stay legal).

Some discussions on this situation from others going through it:

https://talk.uk-yankee.com/index.php?topic=92253.0

https://talk.uk-yankee.com/index.php?topic=90836.0

https://talk.uk-yankee.com/index.php?topic=90729.0

And a discussion on sole trader status in the UK:

https://talk.uk-yankee.com/index.php?topic=89710.0
theOAP is offline  
Reply With Quote
Old Jun 15th 2018, 3:12 pm
  #3  
BE Forum Addict
 
Joined: Jul 2003
Location: Finally moving!
Posts: 1,229
holly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond reputeholly_1948 has a reputation beyond repute
Default Re: Live in UK but work remotely for US Employer

If we are talking six months, an alternative is to not move to the UK but merely visit the UK.
Entering on your US passport and staying up to six months would suggest you were a visitor.
That sort of thing would not really be workable for any longer periods, the UKBA would suspect you were an American working in the UK if your six month visit was followed by another six month visit.
holly_1948 is offline  
Reply With Quote
Old Jun 15th 2018, 3:22 pm
  #4  
 
BritInParis's Avatar
 
Joined: Feb 2012
Location: Not in Paris
Posts: 10,619
BritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond reputeBritInParis has a reputation beyond repute
Default Re: Live in UK but work remotely for US Employer

Originally Posted by holly_1948 View Post
If we are talking six months, an alternative is to not move to the UK but merely visit the UK.
Entering on your US passport and staying up to six months would suggest you were a visitor.
That sort of thing would not really be workable for any longer periods, the UKBA would suspect you were an American working in the UK if your six month visit was followed by another six month visit.
Immigration status and tax liability are not connected in that way; a US citizen who continues to work whilst visiting the UK would be breaking the law. In any case the OP is a British citizen whether he decides to show his US or British passport at the UK border. More than 183 days residence in the UK means that he will become liable for tax on his worldwide income.
BritInParis is offline  
Reply With Quote

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us Archive Advertising Cookie Policy Privacy Statement