Dave_0

Hi All,

Forgive my ignorance, I am a UK Citizen, in the states as a O1 non-immigrant, working for an American LLC.

I got my visa in February 2017 and have nearly completed my first 5 week assignment in America.

I am the only non-US employee the company has, and they have just asked me, how should we pay you? Also, how does US tax work with that money?

At home in the UK, I am a self employed sole trader, and work with an accountant to sort out all my taxes.

Do I pay tax in America for what I have earned here?
Do I put the US income as part of my UK income?
Whats the best way I can get USD back to my UK bank account?
Is there anything else I should know?

Any point in the right direction would be a massive help.

Thanks

Dave

tom169

This post might be better off in the main USA forum.

I think the first question to answer would be where are you a tax resident of? USA or UK?

Dave_0

Tax Resident of U.K.

I only come to the USA for short term work up to 8 weeks at a time, but still live in the UK

AdobePinon

The US will certainly want its cut of anything you earn here. (The states that you live /work in may also want a cut.) If you aggregate enough time in the US, you will by default be treated as a tax resident and the US will then try to claim tax against all your income. Tax avoidance may become trickier at that point. Google 'Substantial Presence Test' and keep in mind that it may become harder to avoid tax residency in the second and third years.

Cook_County

The income forms part of your self-employed turnover. You may owe Federal or State tax as well, but if you do the UK will give credit for this. The 2017 US returns are due to be filed during 2018.

nun

Right now you are a non-resident employed and working in the US for a US company so you have US Federal snd State sourced income and will pay US payroll and income tax, right now you'd file a 1040NR. I'd get your US employer to deposit your pay into a US bank account and tax it like other employees. As you are a UK tax resident you are also liable to tax on your worldwide income and you should include your US income your UK self assessment. You'll get credit for the US income tax you pay.......however, I'm not clear about the payroll taxes. You might be able to get an exemption from US FICA. or you might be able to pay both FICA and NI on the US income and get credits in both systems.

Be careful to watch the number of days you spend in the US as you could easily become a US tax resident ad then your UK income and investments will become liable to US tax as well.