One of our clients is an IT developer working through a UK limited company
He has recently secured a 6 month contract with a large US company
The work will be performed for 3 weeks of the month in the UK, for the other 1 week a month they will fly him to the US
What do we need to consider? They require some tax forms from the UK company. Is this going to cause the company to have to file anything in the US? Will they need a US accountant too?
Any help appreciated
Thanks
Replies (3)
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withholding tax
Normally you would only complete a Form W-8BEN which will prevent withholding tax of upto 30%
They may require a tax residency certificate from HMRC but this is unusual
You would not need to file a US Tax Return unless the individual is deemed to be tax resident in the US which is unlikely
no implications
Even if the domestic law said that he needed to be taxed there would be some treaty exemption
I would be more concerned where individuals stay in one country more than 183 days