EmmaSmith97

Hey, all!

I'm not entirely sure if this is the place to post this question, but I've had some good advice given to me by these forums before.

I and my husband have a kind of unique situation (though maybe not so unique). We are looking to move back to the United Kingdom in 2024, and have a couple of questions about the logistics. We are holding off on applying for the spouse visa until we have the £62,500 in $'s for the required 6 months (just as a safety precaution), however, both of our current US-based employers have expressed that they would like to keep us employed when we move as both of our jobs are done entirely remotely and can be completed anywhere - when considering the spousal visa would a written letter of confirmation of retaining me as an employee at the US-based company constitute as the "confirmed offer of salaried or non-salaried employment in the UK" from FM 1.7 for the financial requirements?

Secondly, what are some key aspects of working for a US company remotely from the UK that I should know/understand? Does my company have to complete any additional steps? Will I continue working as I am now, or will I be under UK Labour laws? (they already have an employee working from Germany, so I'm sure they know how international employees work, I just don't)

Thank you so much, I appreciate all guidance!

Pulaski

The biggest logistical problem that you and your employers face is that when you are living and working in the UK you are liable for UK income tax and social charges (NI), and not US income tax and SS contributions. So unless your employers have existing pay rolls in the UK, or are willing to pay an accountant to run a payroll for you (which is highly unlikely given the cost), you will need to become independent contractors, paid gross and grossed up for US employer SS contributions, so that you can pay UK income tax and NI contributions for effectively being self employed contractors.

You need to have this conversation with your employers ASAP so you know if they are on-board with this and still willing for you to continue working for them.

This question crops up several times a year (also the other way around, working for a British employer while living in the US - FWIW the answer is the same) and there is no practical way for you to remain on the US payroll and adjust your income during the tax return process for several reasons - you have to pay tax quarterly in the UK, but wouldn't get a refund of US taxes until several months after the year end, so you'd be massively out of pocket the entire time, and you cannot get US SS contributions refunded, but are still required to pay NI, so you'd be paying double social charges (though would be paying towards both US SS and a UK state pension when you retire).

EmmaSmith97

This is excellent information, thank you!

So to reiterate, so that I know I have this understanding, there are three possible outcomes:

1. My company is willing to pay an accountant to do payroll and I will essentially be working as a UK Resident working a UK job (Paying UK Income tax and NI)
2. My company is not willing to pay an accountant to do payroll but do want to keep me as a contracted employee - I will be expected to pay both SS and NI (maybe both US and UK income tax? I'ma little unclear here)
3. My company is not willing to pay an accountant to do payroll and does not want to keep me as a contracted employee - I'm SOL and should start considering UK employment haha!

Do I have a kind of layman's understanding of the logistics of working for a US company as a UK resident?

Pulaski

1 & 2 "Yes", but you haven't got 2 quite right:

Short version, you will pay only UK income tax and NI contributions.

Longer version: your employer should pay you your gross salary without US taxes or SS deductions, and should ideally add the employer's SS contributions, so that you can pay UK taxes, including the additional self employed NI contributions (analogous to the US employer's SS contributions) which is why you need to impress upon your employer the need to add the employer's SS contributions which they are currently paying but won't be paying when they remove you from the payroll.

SanDiegogirl

I agree with everything that Pulaski has detailed, and if, you decide to go the 'working for US company in the UK' AND your company does not have a presence in the UK which they can just transfer you over to, then you need to provide evidence of how you get paid in the UK, together with all the relevant details how the tax, NI will be paid in the UK, at time of submitting the application; together with YOU, as the sponsor, providing a letter of employment/contract with all relevant details of the job. (not just a letter of confirmation of continuous employment)
If you go the self employed contractor route then you need to show the new company for self employment has been set up at time of application
Personally, I think, if you have the necessary savings it's a lot easier route to go with regard the visa application.