Remote working for a US company - how do I pay tax

Remote working for a US company - how do I pay tax

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Hi everyone,

I plan to start doing consulting work for a US company remotely from the UK. I will be paid on retainer, a flat fee each month, plus a performance-related bonus at the end of the year. I will only have one client at the moment but may take on additional clients once I'm established.

Couple of questions:

- what's the best way to set up to make it as easy as possble to manage my taxes and make sure I pay what I owe?

- how can I minimise my tax liability? I plan to set up a limited company, with myself as the only director, and invoice my client via that company.

- when I find an accountant to work with, what should I be asking them to make sure that they understand the situation and have expertise with these types of issues?

- if I only have one client, but they are in the US, will I run into any IR35 issues?

Thanks for your help everyone, really appreciate it!

Replies (6)

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By duncanedwards
09th Mar 2015 00:37

To make it as easy as possible, I would engage an adviser who will make sure your affairs are managed in a compliant and tax-efficient manner.

If negotiations are advanced, I wouldn't hang about as planning opportunities may already be more difficult than if you had taken advice earlier.

Either get a recommendation or tell them what you want and ask them what their experience is in that field. Speak to more than one and see which sounds most credible.

Thanks (1)
Replying to johngroganjga:
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By andrew.g.lynch
09th Mar 2015 15:04

That makes a lot of sense

I'm going to sit down with an accountant as soon as possible and get their advice - I won't be starting my contract with this company for another month or so yet, and they are happy to be billed however I want to do it, whether that's as a sole trader or through a limited company, so there are still plenty of options for me.

Thanks for you advice!

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Replying to andrew.g.lynch:
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By remoteworker
15th Oct 2017 06:54

Hi Andrew,
I found your post googling a similar question I am facing personally.
I just wonder if you found all answers to your question as I am struggling with a similar situation.
I am based in the UK and my employer is US based.
Let me know if you could help
Thanks

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Replying to johngroganjga:
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By andrew.g.lynch
09th Mar 2015 15:18

Any VAT issues?

Also I've done my research and it looks to me like there's no VAT payable on these services as I'm delivering them to an overseas client from the UK. Does that sound right to you?

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By David Treitel
09th Mar 2015 19:31

Presumably you are going to give the payor a W-8BEN or W-8BENE.

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Replying to Sharon Pocock:
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By andrew.g.lynch
09th Mar 2015 20:44

Yes, it would be the latter as I'll be billing them as a limited company rather than as an individual.

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