Sianipani

Hello - my husband has an H1B visa and is employed by an American employer; however, I have a derivative visa which does not permit me to work here. As it happens, an employer in the UK would like to hire me, permitting me to work mostly from a distance here in the USA with occasional visits to the UK.

I have checked the UK tax rules and it seems that I can satisfy the criteria to claim to be resident in the UK for tax purposes, if I take this job. My question then becomes, what will the US authorities have to say about this? Will they want to tax me (even though I would be paying income tax in the UK)? And perhaps more fundamentally, will it be lawful for me to be employed in the UK, while living and doing most of my work here in the USA?

Finally, does anyone know whether I can get answers to such Qs from the British Embassy?

All help gratefully received!

Thanks

Hotscot

The Embassy is not an accurate source of information.
I think if you're not allowed to work in the US is doesn't matter who you want to work for.
Generally if you're doing paid work in the US you'll be liable for taxes.

Others will be along to add and/or correct.

Owen778

I'm afraid that you aren't allowed to work while in the US unless you have a visa that allows it. It's the US visa rules that are the problem for you here, not the UK tax rules. As such, the British Embassy is unlikely to be the right place, though I imagine they would try to answer your question.

Noorah101

If you have an H4 visa, you aren't allowed to work while physically inside the USA at all, even for a non-US company.

Rene

Michael

Your visa doesn't allow you to work in the US period. And if it did, as a resident of the US, you are liable for taxes on worldwide income. UK rules have nothing to do with US tax and immigration laws.

Pulaski

Everything everyone else plus: what would your husband put on his US tax return? It is usually far preferable to file taxes "married filing jointly" (i.e. must include your income), and can be messy/awkward/ expensive to file separately. Then the question becomes "what happened to his wife? Where is her tax return? ..... Go down the path you're contemplating and you and your husband will be on a slippery slope to some decisions you really don't want to face, i.e. lie to the IRS or lie to US immigration. Tip: neither is good, both can end very badly!

Sianipani

All these are really useful. So it is true what they say - that the H4 Visas are spousal prisons! It is hard to face the prospect of being a stay at home spouse - financially speaking v problematic, not to mention the prospect of the grey matter being depleted.

I wonder whether it would make any difference if I go to live for half the year in the UK - could I earn a half time living while I am there?

Thanks

Pulaski

Assuming you're a British citizen, you can do whatever the hë11 you want, workwise, while you're physically in the UK, and the US has no say or influence. It will still complicate your husband's US tax returns and the choices/ elections each of you can make.

Owen778

It's legal, but it will complicate US tax filing. Either you file married filing jointly with him as resident and you non-resident for US taxes, or he files married filing separate, or you both file as resident, but you personally claim the foreign earned income exclusion, or similar. It will depend on how long you spend in each country, and your choices. I don't know the details myself, and you would need to either look hard into the details or talk to an expat tax specialist. Hopefully others can provide more info here too.

Noorah101

But would your employer be ok with you working part time like that? You can work whenever you are physically in the UK, so you could stay 6 months in the UK and work, then spend 6 months in the USA not working. Or you could go back and forth every couple of months, again only working while you're in the UK. That's a lot of traveling. .. would the employer pay for the flights?

Rene

Michael

If she meets the "substantial presence test", she doesn't have any option except to file as a resident (Form 1040) either as married filing jointly or married filing separately and use foreign taxes paid to offset US taxes owed,

Substantial Presence Test

Owen778

I deliberately didn't mention the substantial presence test. Stating that she "doesn't have any option" may be simply wrong, as she may meet the "closer connection exception", shown at the bottom of your link. However, deciding if you can apply the exception will be complicated, particularly since her husband will be tax-resident in the US. That's why I recommended she get expert tax advice if she wants to pursue this.

petitefrancaise

Can you get your green cards?

Sianipani

Thanks all. The employer is very flexible fortunately, so the travelling back and forth would not be a problem. Of course, there is the problem of funding all those flights - but I think I would be financially better off working than not working. Not only that, but it would mean I don't have long periods of non working on my CV to account for in the future.

Thanks for the tax advice. All incredibly helpful.

petitefrancaise

Taken from tonight's presidential address:
"The memoranda will also make a few alterations to the legal immigration system, allowing the holders of H1-B, or high-skilled visas, to move or change jobs without the potential to lose their immigration status. Their spouses will also be able to employment authorization if they have an approved application to become a Legal Permanent Resident"