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Moving to the US but working on contract for UK company

Moving to the US but working on contract for UK company

Old Aug 21st 2012, 12:05 pm
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Default Moving to the US but working on contract for UK company

Can anybody help me. I am moving to the US soon, but am hoping to do work for my present company in the UK. My work is all computer based and so would be easy to do remotely.
My question is how do I work out the tax situation. Do I need to set up my own business in the UK and pay HMRC. Can I just get paid into my UK bank account and transfer it to the US, Declaring to IRS whatever is earned.
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Old Aug 21st 2012, 1:33 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by ian_k View Post
My question is how do I work out the tax situation.
The US will tax you on your worldwide income - regardless of where you live or do the work. If your income is taxed in the UK, you usually won't pay tax on that in the US - thanks to the US/UK tax treaty. When you file your US tax return, you enter the amount earned at the beginning of the return and subtract it out at the end as having already been taxed.


Can I just get paid into my UK bank account and transfer it to the US, Declaring to IRS whatever is earned.
How you do your banking is up to you!

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Old Aug 21st 2012, 2:03 pm
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Default Re: Moving to the US but working on contract for UK company

One assumes you have a visa in hand and that you'll have work authorization too?
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Old Aug 21st 2012, 2:15 pm
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Default Re: Moving to the US but working on contract for UK company

do I need a visa????? I was just going to come in through Mexico.

I don't want to get taxed in the UK and would want to claim that back, through the double taxation scheme. I was thinking I would do self-assessment in the UK? But not really sure how it would work. I would also need to file taxes in the US. Any advice would be useful.
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Old Aug 21st 2012, 2:38 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by ian_k View Post
do I need a visa????? I was just going to come in through Mexico.
Why would "coming in through Mexico" mean that you don't need to comply with US immigration law?

If you are not a US citizen or permanent resident you cannot work in the US without an appropriate visa and employment authorization.
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Old Aug 21st 2012, 3:00 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by ian_k View Post
do I need a visa????? I was just going to come in through Mexico.
You usually need a few posts under your belt before folks realize you're a sarcastic sod.
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Old Aug 21st 2012, 3:09 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by fatbrit View Post
You usually need a few posts under your belt before folks realize you're a sarcastic sod.
... because the other option of "being a complete idiot" is so much more common ...
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Old Aug 21st 2012, 3:40 pm
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Default Re: Moving to the US but working on contract for UK company

Just so it's clear to the OP, while my question may seem as flippant as your response, you'd be surprised how many people post on here thinking that because they get paid in the UK by a UK company that they somehow don't need work authorization to work remotely from the US.
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Old Aug 21st 2012, 4:08 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by ian_k View Post
Can anybody help me. I am moving to the US soon, but am hoping to do work for my present company in the UK. My work is all computer based and so would be easy to do remotely.
What visa will you be using to move to the USA?

My question is how do I work out the tax situation.
I fear a tax question is a bit premature...you first need the correct visa in order to live and work in the USA (yes, even if your employer is outside the USA and being paid outside the USA).

Originally Posted by ian_k View Post
do I need a visa????? I was just going to come in through Mexico.
So you were just going to come to the USA on the VWP and stay permanently? You haven't done enough research. One cannot move to the USA just by coming in on the VWP. One cannot live in the USA while on the VWP, they can only visit. One cannot work while physically in the USA on the VWP; they need a proper work visa, or else be entering on some kind of visa which allows them to live and work in the USA.

I don't want to get taxed in the UK and would want to claim that back, through the double taxation scheme. I was thinking I would do self-assessment in the UK? But not really sure how it would work. I would also need to file taxes in the US. Any advice would be useful.
Really, you need to do a LOT more research on the visa aspect of things, before you start asking tax questions.

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Old Aug 21st 2012, 4:12 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by ian_k View Post
Can anybody help me. I am moving to the US soon, but am hoping to do work for my present company in the UK. My work is all computer based and so would be easy to do remotely.
My question is how do I work out the tax situation. Do I need to set up my own business in the UK and pay HMRC. Can I just get paid into my UK bank account and transfer it to the US, Declaring to IRS whatever is earned.
FWIW I have a US company and do some work for a UK company. The UK company pays into my UK bank account without witholding anything, I transfer it to the US through the US LLC, and declare all the income to the IRS. The UK company's parent company said that arrangement was acceptable at that end, and the tax expert referred to on this forum has said the same. I just hope they're right!
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Old Aug 21st 2012, 4:33 pm
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Default Re: Moving to the US but working on contract for UK company

I think I'll let Boromir handle this one ...

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Old Aug 21st 2012, 6:20 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by SultanOfSwing View Post
I think I'll let Boromir handle this one ...

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Old Aug 21st 2012, 6:39 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by civilservant View Post
At any rate, everyone knows Mordor is much easier to get into than the US at the best of times
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Old Aug 21st 2012, 8:08 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by ian_k View Post
do I need a visa????? I was just going to come in through Mexico.

I don't want to get taxed in the UK and would want to claim that back, through the double taxation scheme. I was thinking I would do self-assessment in the UK? But not really sure how it would work. I would also need to file taxes in the US. Any advice would be useful.
I assume you are being sarcastic.....what visa do you have?

If you don't have the appropriate visa then the question of work and tax is easy; you cannot work in the US and you will have to leave the US after 3 months. If you do some work over the internet for a UK company practically speaking the US won't know and you'll just be paid and taxed in the UK as normal.
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Old Aug 21st 2012, 9:03 pm
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Default Re: Moving to the US but working on contract for UK company

Originally Posted by sir_eccles View Post
Just so it's clear to the OP, while my question may seem as flippant as your response, you'd be surprised how many people post on here thinking that because they get paid in the UK by a UK company that they somehow don't need work authorization to work remotely from the US.
I was having a little chuckle while waiting in the immigration line at Chicago at the weekend. Two women behind me were chatting, they had obviously just met on the plane or in line, but one was saying they were moving for her husbands job and she couldn't work as they were on H visas. But not to worry as she was going to continue as a consultant for her old company in England.
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