Live in UK but work remotely for US Employer
#1
Forum Regular
Thread Starter
Joined: Nov 2017
Posts: 39
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?
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?
#2
BE Forum Addict
Joined: Apr 2011
Location: The Shire
Posts: 1,117
Re: 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.
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
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
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
#3
BE Forum Addict
Joined: Jul 2003
Location: Finally moving!
Posts: 1,236
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.
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.
#4
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.
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.