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UK Tax on Income

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Old Feb 6th 2013, 12:24 pm
  #46  
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Default Re: UK Tax on Income

Originally Posted by ldollard
Just to clear issues up, i'm a green card holder, but am British, i plan on paying my UK taxes through a UK accountant. My US company is not liable for any taxes as I'll be an independent contractor as far as IRS and my company is concerned in the US. In the UK, i'll be applying as a salaried person on my application form, whether this will work or not we'll see once the immigration people approve or deny it. My USA company will not be liable for taxes anywhere. We employ people all over the globe on this basis and do not incur taxes in, England, Scotland, Russia, Venezuela , Turkey, Jamaica, Thailand, Spain or Canada etc.. etc..
You are mixing apples and oranges here.

If you are a salaried person you must register for PAYE in the UK and pay NIC etc. you will be a UK employee of the US company and will have to conform to UK rules on vacation, holidays, sick leave etc. Your US employer will have to work out how to pay you without FICA and US income tax being withheld, but your salary will obviously be liable to UK tax and it would be inaccurate to describe you as a contractor. I don't think your US employer is liable to pay employer NICs because they don't have a UK address.

As a green card holder you will also be liable to US tax, until you renounce or loose your green card and the IRS recognizes you as an NRA. If you or your US spouse should ever want to return to the US you'll have to go through the whole green card application again.
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Old Feb 6th 2013, 12:56 pm
  #47  
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Default Re: UK Tax on Income

Originally Posted by nun
You are mixing apples and oranges here.

If you are a salaried person you must register for PAYE in the UK and pay NIC etc. you will be a UK employee of the US company and will have to conform to UK rules on vacation, holidays, sick leave etc. Your US employer will have to work out how to pay you without FICA and US income tax being withheld, but your salary will obviously be liable to UK tax and it would be inaccurate to describe you as a contractor. I don't think your US employer is liable to pay employer NICs because they don't have a UK address.

As a green card holder you will also be liable to US tax, until you renounce or loose your green card and the IRS recognizes you as an NRA. If you or your US spouse should ever want to return to the US you'll have to go through the whole green card application again.
No I am not.

Being a salaried person in the UK is after I enter the UK.

If i have been offered a job that starts within 3 months, I clearly have no tax information on that job at all when I apply for the spouse visa.

And I very very clearly stated many many times, that when I start work in the UK I have an accountants who will be sorting out my tax and nic for me. I submit how much i'm paid and they tell me how much i send to HMRC.

What part of any of that is different to what you or I are saying, its all exactly the same.

As a green card holder, when I go to file my taxes I am very sure that because I was working outside of the country my credits and thus my refund of $0 will nullify my USA tax liability. Not only that but I honestly don't care how much tax I am liable for once I have my family in the country.

Whether or not i owe taxes in the UK or USA has no bearing on my spouse visa.

And you are right we will probably have to go through the green-card process again, but its so simple compared to the UK immigration that its not even a consideration.

Lastly, I WILL be a contractor as far as the IRS is concerned, BUT, salaried as far as HMRC is concerned.

I literally think we are saying the same thing in different ways.
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Old Feb 6th 2013, 2:14 pm
  #48  
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Default Re: UK Tax on Income

Seems like you have it all sorted.
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Old Feb 6th 2013, 10:21 pm
  #49  
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Default Re: UK Tax on Income

Originally Posted by spouse of scouse

Evidence
...
Additionally you must provide EITHER:
a letter from a UK employer confirming the job offer, the gross annual salary and the starting date of the employment which must be within 3 months of the applicant's partner's return to the UK; OR
a letter from a UK employer enclosing a signed contract of employment, which must have a starting date within 3 months of the applicant's partner's return to the UK.
I'm going to change the wording on the wiki. Unless someone has already done it...
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Old Feb 6th 2013, 11:12 pm
  #50  
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Default Re: UK Tax on Income

Originally Posted by englishguygoinghome
I'm going to change the wording on the wiki. Unless someone has already done it...
I feel like a whistleblower!

For my punishment, I think I should be made to bypass the spouse visa system completely, and be summarily deported to the UK. Please.

Makes sense really, we took enough of your convicts, now you can have a few back
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Old Feb 7th 2013, 12:07 am
  #51  
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Default Re: UK Tax on Income

Lastly, I WILL be a contractor as far as the IRS is concerned, BUT, salaried as far as HMRC is concerned.
This statement worries me. I have no expertise to say whether it is wrong or right, but it's at least inconsistent. The US has a set of criteria that it applies to determine if you are an employee or contractor and being registered for PAYE in the UK as the sole representative of your UK company might be an issue. Also the nature of the working relationship might be deemed to be that of an employee if you don't work for anyone else. This might be a wrinkle in the IRS tax code and done often to simplify employing people abroad, but I don't know.
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Old Feb 7th 2013, 4:23 am
  #52  
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Default Re: UK Tax on Income

Originally Posted by nun
This statement worries me. I have no expertise to say whether it is wrong or right, but it's at least inconsistent. The US has a set of criteria that it applies to determine if you are an employee or contractor and being registered for PAYE in the UK as the sole representative of your UK company might be an issue. Also the nature of the working relationship might be deemed to be that of an employee if you don't work for anyone else. This might be a wrinkle in the IRS tax code and done often to simplify employing people abroad, but I don't know.
Nun, believe me when I say I am truly grateful for your help, without it, I never would have looked at this all as closely as I did.

You are probably right that the IRS might have some kind of issue possibly, but thats a bridge i'll cross when I get to it, thankfully as far as I know it doesn't affect my visa filing.

When the IRS pounds me i'll let you tell me "you told me so".
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Old Feb 7th 2013, 4:24 am
  #53  
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Default Re: UK Tax on Income

Originally Posted by englishguygoinghome
I'm going to change the wording on the wiki. Unless someone has already done it...
Originally Posted by spouse of scouse
I feel like a whistleblower!

For my punishment, I think I should be made to bypass the spouse visa system completely, and be summarily deported to the UK. Please.

Makes sense really, we took enough of your convicts, now you can have a few back
Thanks guys, once again complete strangers become virtual friends and sometimes harbingers of doom.... or whistleblower at least.
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Old Feb 7th 2013, 8:30 am
  #54  
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Default Re: UK Tax on Income

Originally Posted by ldollard
Nun, believe me when I say I am truly grateful for your help, without it, I never would have looked at this all as closely as I did.

You are probably right that the IRS might have some kind of issue possibly, but thats a bridge i'll cross when I get to it, thankfully as far as I know it doesn't affect my visa filing.

When the IRS pounds me i'll let you tell me "you told me so".
It's not really your problem as long as you get your wages paid US tax free and have no Medicare or FICA taken out. It's more of an issue for your company. There are ways to eliminate withholding on NRA employees and the US/UK Totalization Agreement should help with the FICA issues.

Last edited by nun; Feb 7th 2013 at 8:33 am.
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Old Feb 7th 2013, 11:21 am
  #55  
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Default Re: UK Tax on Income

Originally Posted by ldollard
Ok so i spoke to the immigration consultant yesterday, this is basically what she said.

As my specific situation is not covered under any current law; as in my USA employer providing employment, she believes they wont have any grounds to deny the application.

She said she cannot be definite as she's never come across it before but that I should fill out the spouse visa form as if i was salaried and provide all the required paperwork to back up category a.

So that's a pretty positive step, if anyone is wondering who I used, it is this lady and she was extremely competitive in charging me under 100 pounds for an hour consult. (it costs $250 per half hour in the US).

http://www.depreyconsulting.com/about-us/


This woman has practically ZERO credentials to be helping you! She is a former ECO who processed applications under the OLD RULES! Where's her credentials/insight/expertise for anything under the new rules?

Would you like my address? I mean, since you are throwing away hundred pound notes, I'd like to get in line.
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Old Feb 7th 2013, 11:26 am
  #56  
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Default Re: UK Tax on Income

Originally Posted by ldollard
I'm simply not going to do that, as she pointed out, that would make the process over a year long (for a full 12 months self-employed route), which is basically bullshit.

I'd rather spend $1300 to find out and if they deny it, then we'll look at other routes.
So you want your wife to have a denial showing up in the system? Sweet. Let's just totally screw up her ability to get into the UK again without just a load of hassle at the airport.
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Old Feb 7th 2013, 1:26 pm
  #57  
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Default Re: UK Tax on Income

Originally Posted by rebeccajo


This woman has practically ZERO credentials to be helping you! She is a former ECO who processed applications under the OLD RULES! Where's her credentials/insight/expertise for anything under the new rules?

Would you like my address? I mean, since you are throwing away hundred pound notes, I'd like to get in line.
Originally Posted by rebeccajo
So you want your wife to have a denial showing up in the system? Sweet. Let's just totally screw up her ability to get into the UK again without just a load of hassle at the airport.
I'm not sure if you are intending to be inflammatory, but your posts are crass at best, inflammatory at worse. It's been 10 years since I was in a strictly IT role, but I still keep all my knowledge relevant to that field. As did she. Unless you know her or know what we discussed how can you even have an opinion.

I've rewritten this post 5 times, so as not to emulate your behavior.

Last edited by ldollard; Feb 7th 2013 at 1:36 pm. Reason: going from ****ing pissed off to Buddha like.
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Old Feb 7th 2013, 11:00 pm
  #58  
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Default Re: UK Tax on Income

Originally Posted by ldollard
I'm not sure if you are intending to be inflammatory, but your posts are crass at best, inflammatory at worse. It's been 10 years since I was in a strictly IT role, but I still keep all my knowledge relevant to that field. As did she. Unless you know her or know what we discussed how can you even have an opinion.

I've rewritten this post 5 times, so as not to emulate your behavior.
*shrugs*

I'm just trying to wake you up. Like other people in this thread are trying to do.
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Old Feb 9th 2013, 7:47 am
  #59  
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Default Re: UK Tax on Income

Just to sum this stuff up.

If the OP gives up his green card files I-407 and 8854 he will be classed as an NRA by the IRS. If he then works entirely in the UK for a US company he will have no tax, FICA or Medicare liability. Even if the US company has no UK address and the money comes from the US there is no US tax due.

The OP should make sure the US company understands this and that no tax withholding is necessary. He should file a W-8BEN with the company to confirm his NRA status and also to claim zero withholding under the US/UK tax treaty.

Once in the UK the OP should register for PAYE and NI. An employment contract and previous pay slips should go a long way to helping in the UK spouse visa application.
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Old Feb 9th 2013, 8:17 am
  #60  
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Default Re: UK Tax on Income

idollard, it would be helpful if you would say what you have to say, rather than deleting it.
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