MindTheGAAP

I did a quick search for prior threads but don't believe it has been addressed specifically before.

I'm an Englishman living in Dallas currently (perm res), working for an exclusively American company. There's a project that I have been asked to consider (I'm a Consultant) that is located in London and would last approx. 4 months. I know there are tax rules for Americans working in England (182 days), but the basic question I have is:

As an Englishman, I'd technically be earning my compensation in England, from a US Company, getting paid through our standard (US) payroll system. Would I owe taxes on the income that was "earned" in London during this time?

I want to be sure I don't short-change myself and incorporate any such liability into my discussion with my firm.

Thanks all!

nun

This might help

UNITED KINGDOM: Short-Term Business Visitor Agreement to Be Updated | Global Mobility News

As you will be working in the UK for 4 months I think you will need to do some more research

MindTheGAAP

As someone that grew up in England, I think I'm in decent shape. My question related specifically to the tax situation and since I have "checked out" of the UK tax system, I believe I'll be fine as I won't be a qualifying resident.

Noorah101

You would just report that income on your US tax return as usual. Whether you owe tax or not, will depend on your end-of-year financial situation, as usual.

Rene

MindTheGAAP

The question is related to UK tax liability, not US.

nun

So are you self employed?

If your work is more than incidental I think HMRC is going to want to tax your income and theres also stuff like VAT and NICs to consider.

I get the feeling you'll have to do a UK self assessment and and claim foreign tax credits on your US taxes.

MindTheGAAP

No, I work for an American consulting firm (solely American offices)

nun

OK, but that doesn't get around that HMRC will want to tax your earnings as the work is performed in the UK. I think your consulting company HR department needs to be researching this as payroll taxes come into play

MindTheGAAP

I have them looking into it but wanted to do some work on my end too. One of the accountants I know thinks I would be alright since I've been "checked out" of the UK tax system for 8 years+ and wouldn't qualify as a resident based on days spent in the country (330 day rule). Trying to ascertain the accuracy of that.

nun

It's not really you that counts here, its your employer. The tricky thing is that they aren't a UK business. There is some light here, your employer needs to call HMRC and get the agreements in place as there are contract requirements to working in the UK.

PAYE82000 - PAYE operation: international employments: EP appendix 4: criteria for short term business visitors

https://www.gov.uk/government/upload...d_helpbook.pdf

Noorah101

Oops, sorry.

Rene