ian_k

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.

ian-mstm

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.


How you do your banking is up to you!

Ian

sir_eccles

One assumes you have a visa in hand and that you'll have work authorization too?

ian_k

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.

md95065

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.

fatbrit

You usually need a few posts under your belt before folks realize you're a sarcastic sod.

md95065

... because the other option of "being a complete idiot" is so much more common ...

sir_eccles

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.

Noorah101

What visa will you be using to move to the USA?

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).

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.

Really, you need to do a LOT more research on the visa aspect of things, before you start asking tax questions.

Rene

GeoffM

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!

SultanOfSwing

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

civilservant

SultanOfSwing

At any rate, everyone knows Mordor is much easier to get into than the US at the best of times

nun

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.

N1cky

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.