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US --> UK, while retaining US job - pay, taxes, etc?

US --> UK, while retaining US job - pay, taxes, etc?

Old Dec 23rd 2020, 9:39 pm
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Default US --> UK, while retaining US job - pay, taxes, etc?

So, my wife and I are seriously considering returning to the UK at some point in '21.

I've been working remotely for my US employer for most of this year, and they're looking to go completely remote rather than returning to the office once the COVID situation is contained. My physical location will make no difference to them.

So, what would be the procedure to put in place in order to work remotely in the UK for a US company, but still have UK income and pay UK taxes?

I'm thinking I'd have to set myself up as self-employed, and effectively pay myself from my US bank account. Open to suggestions as to the best way to do this, preferably in such a way that I don't have to pay two lots of taxes.

It's all still quite an embryonic idea with a lot of fleshing out to do, but having some facts to work with would make the whole thing easier.

Thanks in advance.
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Old Dec 24th 2020, 7:45 am
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Default Re: US --> UK, while retaining US job - pay, taxes, etc?

The best advice would be to speak to an accountant. However, generally yes, the easiest way is to do it self employed or set up a limited company.
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Old Jan 12th 2021, 4:07 pm
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Default Re: US --> UK, while retaining US job - pay, taxes, etc?

Originally Posted by Rusty Chainsaw View Post
So, my wife and I are seriously considering returning to the UK at some point in '21.

I've been working remotely for my US employer for most of this year, and they're looking to go completely remote rather than returning to the office once the COVID situation is contained. My physical location will make no difference to them.

So, what would be the procedure to put in place in order to work remotely in the UK for a US company, but still have UK income and pay UK taxes?

I'm thinking I'd have to set myself up as self-employed, and effectively pay myself from my US bank account. Open to suggestions as to the best way to do this, preferably in such a way that I don't have to pay two lots of taxes.

It's all still quite an embryonic idea with a lot of fleshing out to do, but having some facts to work with would make the whole thing easier.

Thanks in advance.
Once you are tax resident in the UK you wil not have to pay US income tax, though you may consider whether you wish to continue paying social security tax or not, and how your employer is set up to handle a remote worker abroad- some companies do not wish to deal with it. I know of people working fro some smaller companies who simply don't tell their employer, or conversely alrger companeis who may haev an office in the UK shy away from having an employee paid from the US based on the UK. There are some companeis hat have an agreement on whether they continue paying social security taxes or not for an employee in the UK. There is also the issue of medical insruance- there can be quite a savings if an employer provdies the same salary but without medical coverage.

One thing on timing to consider is the different tax years , and also depending on your income whether it actually is beneficial to pay a lower marinal tax rate in teh US and deduct those taxes from a higher base rate in the UK. Also whether applying to pay Class 2 NIC contributions which are very affordable you could actually be doing before you return to the UK..

The issue can be complicated, consulting with an accountant familair with such issues definitely recommended.
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