AbbiD

My husband and I moved back to the UK after 20 years in the States and we both work in the UK, I work part time. I am about to sign a contract to simultaneously work part time remotely as an independent contractor for an organisation in the US. Is it better to be paid into my US account or into my UK account? The agency based in the US say they can do either.
Also should I become an LLC?
I am not sure what is better for tax purposes. If you know or can recommend someone who will know please share.
My financial adviser and agency guy are telling me different things and I don't know who is right!
Thank you!

christmasoompa

Personally I'd get paid in to your UK bank account and make the company pay the fees rather than you having to.

As for self employed vs a Ltd company, that will really depend on how much you'll be earning. I think the usual figure given is about £25k a year for it to be better for you financially to be paid via a Ltd company. It's more hassle but much lower tax rate overall (as evidenced by Rishi Sunak's 22% this week!).

If you have an accountant, they should be able to advise on the best option for you, and do the necessary calculations based on your projected income.

AbbiD

Thank you so much! Do you have any idea where I can find an accountant who would be suited to my situation?

christmasoompa

It's more about finding one that you click with really. But any accountant will be very used to dealing with clients that have small Ltd companies, or are self employed, and be able to advise you. Just contact a few in your area and see who you like.

Errol

Legally, you will owe taxes to the U.S. regardless which bank account it gets deposited. It might be easier to have them deposit the funds in the U.S. bank account, and expenses you can deduct from those earnings, if possible pay from that account. It will be all be in U.S. currency and for taxes one annual currency conversion. Does your bank offer U.S. Dollar depository accounts? There is also Social Security payments. There is the tax treaty to consider. Depending on the entity chosen, there is the 1099 reporting to the IRS