AlanD

Just another quick questions regarding this. Does it make a diffrence if your employer is paying your wages into a UK bank account?

Im moving to the US in the next two weeks and will be kept on with my current employer but working remotely from the US. My work will all be "UK based" in terms of the actual work Im doing and I will be retaining my UK bank account, they will be paying my salary into that as normal. Does this effect what my employer has to do?

I obviusly intended to file tax returns in the US and am fully expecting to be double taxed to a point. Any insite would be really appriciated.

christmasoompa

Hi, I've moved your post in to a thread of your own, as the thread you'd posted on was several years old, so the info in it may well be out of date. Hopefully you'll get some good info here.

Can you just clarify which visa you're moving on?

AlanD

Thanks for that, appreciate it.

Seeing as it’s a new thread, just a brief background. I’m moving to the US just before Christmas and will be continuing to work for my current, UK based, employer with nothing changing as such. They will continue to pay me as normal into my UK bank account and my plan was then to transfer my salary to the US and then file whatever tax returns I need to do in the US. As it stands, my company currently has no intention of filing anything in the US.

It would be really interesting to hear what people in a similar situation have done.

I’m moving on an IR-1 visa. My wife is American.

scrubbedexpat099

If they are keeping you as an employee they will have State and Federal requirements.

AlanD

OK, thanks.

In terms of my own taxes though, my plan to transfer from my UK account to my US and then file my own tax returns is fine and above board?

civilservant

No it's really not - not only will you need to pay your part of income tax, but they need to pay theirs - which they won't do, as they will continue to pay UK tax and NI on your behalf, not US taxes.

You cannot separate out 2 entities that have an ongoing business relationship (ie you, and your employer

What you are suggesting cannot be done within the law easily. If you wish to continue to work for a UK employer, you need to set yourself up as an independent contractor and bill them. That relieves them of US reporting and payment obligations.

S Folinsky

Your inquiry is what us legal types might call “issue rich.” Perhaps you may NOT be subject to dual taxation. I understand that the US and the UK have treaties/agreements in place that may address the issues. Please note that your income may be subject to state and/or local taxes in addition to Federal taxes. Also, as a US resident, your UK accounts may be subject to US reporting rules (and your bank may not want to deal with US requirements and therefore no longer want you as a customer).

There are online resources on the issues. But even though I have a law degree, I get headaches in reading IRS websites.

Consultation with a professional expert might be in order.

Nutmegger

This is the way to proceed -- and have your earnings wire-transferred directly into your US account. No need to mess around with being paid in the UK and transferring the money yourself. You then report your earnings on your annual tax return, after paying quarterly estimateds to the IRS and your state (if relevant).