Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Working Part-time in the UK and USA

Working Part-time in the UK and USA

Old Sep 8th 2017, 4:38 am
  #31  
Just Joined
Thread Starter
 
Joined: Sep 2017
Posts: 19
deltrotter is an unknown quantity at this point
Default Re: Working Part-time in the UK and USA

Thanks Pulaski! That is exactly what I was I thinking.
deltrotter is offline  
Old Sep 16th 2017, 8:26 pm
  #32  
Just Joined
Thread Starter
 
Joined: Sep 2017
Posts: 19
deltrotter is an unknown quantity at this point
Default Re: Working Part-time in the UK and USA

Ok, looks like I will be paid full-time in the US, but will actually only be there for 20 weeks of the year and the rest in the UK.

My wife will reside in the UK for the majority of the time and will visit me for 9 weeks of the year in the US.

Can I be paid my salary in to a US bank account, then transfer it to the UK and gift it to my wife, and thus avoid any further US taxation (e.g. Exit tax or gains on a house purchase in the UK)?

It is all very complicated!

Cheers

Del
deltrotter is offline  
Old Sep 16th 2017, 10:01 pm
  #33  
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,397
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Working Part-time in the UK and USA

Originally Posted by deltrotter
Ok, looks like I will be paid full-time in the US, but will actually only be there for 20 weeks of the year and the rest in the UK.

My wife will reside in the UK for the majority of the time and will visit me for 9 weeks of the year in the US.

Can I be paid my salary in to a US bank account, then transfer it to the UK and gift it to my wife, and thus avoid any further US taxation (e.g. Exit tax or gains on a house purchase in the UK)?

It is all very complicated! ....
It's actually quite simple. .... The solution you require might be complicated.

You are creating the mirror of the problem that most people (who come here to BE) have when trying to live in the US and work remotely for a UK employer. You are required to pay HMR&C the taxes and NI in respect of the work you perform while in the UK, anything less is tax fraud.
Pulaski is offline  
Old Sep 17th 2017, 8:50 am
  #34  
Just Joined
Thread Starter
 
Joined: Sep 2017
Posts: 19
deltrotter is an unknown quantity at this point
Default Re: Working Part-time in the UK and USA

Thanks. Absolutely fine with that. How do they work out how much I am working in the UK?

Also, I guess that through the UK/us tax treaty that the tax I pay in the UK will be taken off my US tax bill?

Has anyone ever been through something similar.

Again, thank you for your help.
deltrotter is offline  
Old Sep 17th 2017, 12:11 pm
  #35  
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,397
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Working Part-time in the UK and USA

Originally Posted by deltrotter
Thanks. Absolutely fine with that. How do they work out how much I am working in the UK? .....
Prorated time, presumably "days" if you are salaried.
.... Also, I guess that through the UK/us tax treaty that the tax I pay in the UK will be taken off my US tax bill? ....
That seems like a complicated way to do it, AND you won't be able to get back the SS and unemployment insurance deducted in the US, so you'll be paying about 10% excess on the part taxed in the US.

You pay tax in each country on the money earned in each country. If you earn $100, $40 in the US and $60 in the UK, then you pay income tax, SS contributions and unemployment insurance in the US on $40 and you pay income tax and NI on $60 in the UK.
.... Has anyone ever been through something similar. ....
I don't recall seeing anyone try to do exactly what you are trying to do, and as.far as I can see it will be practically impossible to be paid in two countries through one pay roll, which is why I suggested that you are laid through the payroll in the US and invoice as a contractor for work done in the UK. Doing it that way you bill for the "gross cost" in the US, so including the employers social security contributions, which you will need to pay the self-employed NI rates in the UK.

Honestly, if they want you enough to apply for a visa for you and allow you to work remotely more than half the time, then you need to tell them that the "one payroll" solution won't work, and you need to invoice them for the work in the UK so they can pay you gross. Failing that they probably need to bump up your pay in respect of the work in the UK by about 20% to reflect the excess SS and unemployment insurance being deducted.

Last edited by Pulaski; Sep 17th 2017 at 12:16 pm.
Pulaski is offline  
Old Sep 17th 2017, 12:13 pm
  #36  
Just Joined
Thread Starter
 
Joined: Sep 2017
Posts: 19
deltrotter is an unknown quantity at this point
Default Re: Working Part-time in the UK and USA

Thanks Pulaski, much appreciated.
deltrotter is offline  
Old Sep 17th 2017, 12:17 pm
  #37  
 
Pulaski's Avatar
 
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,397
Pulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond reputePulaski has a reputation beyond repute
Default Re: Working Part-time in the UK and USA

Originally Posted by deltrotter
Thanks Pulaski, much appreciated.
I was editing/ adding to my post when you repied.

You're welcome.
Pulaski is offline  
Old Sep 17th 2017, 4:28 pm
  #38  
Just Joined
Thread Starter
 
Joined: Sep 2017
Posts: 19
deltrotter is an unknown quantity at this point
Default Re: Working Part-time in the UK and USA

Thanks Pulaski, just seen your edited bit. You are right, I will see if I can do the split and invoice from over here. I am guessing there are major benefits in doing it like that.

Again, I will post here with what happens.
deltrotter is offline  
Old Sep 17th 2017, 4:40 pm
  #39  
Just Joined
Thread Starter
 
Joined: Sep 2017
Posts: 19
deltrotter is an unknown quantity at this point
Default Re: Working Part-time in the UK and USA

Sorry, just noticed you mentioned self-employed rather than set up a limited company. Someone elsewhere mentioned that is the easier way to go as well as it does not fall foul of ir35. Less tax beneficial though.
deltrotter is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.