savannah_boy

Hi I have read various posts about transfering money but basically I want to transfer a static 1500pounds every month to a Bank of America account (when it is set up in my name). I will be self employed in the US (currently await CR1 completion). However one of my clients is UK based and I want to keep the audit trail in perfect order.

In your experience with this situation Currency Broker v Internet banking which keeps the transfer overhead costs down and is the most reliable?
cheers in advance, sarcasm and put downs welcome!

cranston

I use a company called XE.com

Checkout their website. They are first class.

Duncan Roberts

OK. Just send the £1500 to my UK bank account and I'll do the rest, it will be very reliable.

lansbury

Both HiFX and MoneyCorp do fixed rate monthly contracts. You can fix the rate from anything from 6 - 24 months as fits your circumstances.

Both are cheaper than a High Street bank and give better exchange rates.

celticgrid

I'm not sure what you mean by "audit" but I don't think the UK money has to come across each month, i.e. you can get paid in the UK and simply leave the money there as long as you fill in the right paperwork for tax etc. A benefit in that is in transferring the money when exchange rates are better.

Another option open to you is to open a multi-currency account with a UK bank, move the UK pounds to the US dollar line when rates are favorable, then transfer from there. All capable of being done online.

savannah_boy

Really? I thought if I was self employed in the US I would have to bring the money over and get it taxed there.

lansbury

You would declare the money for tax as part of your world wide income but it can stay in the UK for as long as you like.

Currently I have a contract to move my pension each month to the US, I got a good exchange rate in July 2008 of $1.85 to the £ which runs out in June this year. Then I shall see probably leave it accruing in the UK and move it over whenever the rate is better than it is now. But even though it will be left in the UK, I will include it on my tax return for that year.

celticgrid

Any income (earned, interest, pension, trust fund, etc.) doesn't have to be 'brought over' to be subject to US tax. The tax people here are interested in any income you have, wherever it is earned and wherever it is kept.

Basically, you are allowed foreign income, and the tax people don't care where it lives as long as they get their piece of it.

If you do go down the 'keep it in the UK' route do remember that you have to declare any foreign bank accounts or similar if the total balance at any time during the tax year exceeds $10,000. You just declare it, so they can keep tabs on you, nothing worse than that.

Dan725

+1

savannah_boy

The only problem with me keeping it in the UK is that I will need the money to pay my US taxes! Chicken and egg