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Exchange Rates / Bank Account

Exchange Rates / Bank Account

Old May 7th 2011, 11:57 pm
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Default Exchange Rates / Bank Account

Hi all.

I've recently arrived from London and will be working here for 2 years.

I'll still be paid directly to my Natwest Account in UK, however will need to set up an account here also. The only thing I'll use it for is a credit card and to transfer money on occasion.

I also want to transfer sufficient sterling to buy myself a decent car here, so am looking for the most efficient way of doing this [fees, rates, etc.

Thanks in advance for any suggestions.


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Old May 8th 2011, 12:56 am
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Default Re: Exchange Rates / Bank Account

Welcome to BE

If you do a search, you'll find hundreds of threads on setting up bank accounts, shifting money around, taxes and sorting out credit rating.

xe.com hifx etc have been recommended as good currency exchange services for the rates.

Why are you getting paid in the UK though? Would have thought it would be easier being on a US pay role system if you're being employed than have to pay all that employer tax burden yourself, but what ever.
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Old May 8th 2011, 4:57 am
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Default Re: Exchange Rates / Bank Account

Thanks for response.

Parent Company is UK based, so tax will be equalised [ie I'll pay the same as if in UK]. I'm assured this is the standard way of doing things!


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Old May 8th 2011, 4:21 pm
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Default Re: Exchange Rates / Bank Account

Originally Posted by Paul 1 View Post
Thanks for response.

Parent Company is UK based, so tax will be equalised [ie I'll pay the same as if in UK]. I'm assured this is the standard way of doing things!


Paul
Aye, but complicated in that you will be responsible for paying Federal/State and any county/city taxes yourself. As a self employed person, which essentially you'd be, you would also have to pay the employer contribution on top, which doubles your tax burden for certain things.

It's not the standard way of doing things.
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Old May 8th 2011, 11:19 pm
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Default Re: Exchange Rates / Bank Account

There has been several people that got hit with a high IRS taxes when paid in the UK. You will be treated by the IRS as either an independent contractor (you pay the companies share of FICA taxes) or as an employee with benefits (then your company must follow IRS rules and taxes as well as pay unemployment insurance and other government tax laws). If you are treated as an independent contractor, then you will likely have to pay taxes on your benefits (medical, life insurance, etc.). Also if you are treated as an independent contractor, that may be against the rules of ICE for a L1 or H1-B visa.

So being paid in the UK is not the way it is normally done.
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Old May 10th 2011, 12:51 pm
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Default Re: Exchange Rates / Bank Account

Thanks for updates. I have an appointment to schedule with KPMG who I'm told take care of this.

Any advise on who to open a Bank Account with [similar to a simple Natwest Current Account]?

Also the most cost efficient way to convert 70k GBP into US Dollars?
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Old May 10th 2011, 2:12 pm
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Default Re: Exchange Rates / Bank Account

Originally Posted by Paul 1 View Post
Thanks for updates. I have an appointment to schedule with KPMG who I'm told take care of this.

Any advise on who to open a Bank Account with [similar to a simple Natwest Current Account]?

Also the most cost efficient way to convert 70k GBP into US Dollars?
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Old May 10th 2011, 3:18 pm
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Default Re: Exchange Rates / Bank Account

I like the FairFX card for day to day expenses. It's a pre-paid credit card, denominated in $ but you load it up in £.

The exchange rates are good - definitely better my bank and there are no additional charges for spending, only a small charge when you want to withdraw cash.

Martin Lewis's money saving expert site has details on this and similar cards. There's normally a £10 opening fee, but you should be able to find a voucher or special URL to get around that if you google for one.
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Old May 11th 2011, 4:35 am
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Default Re: Exchange Rates / Bank Account

Martin Lewis is a great steer; I'd forgotten all about his site- many thanks!


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