UK Company contracting for US Company

UK Company contracting for US Company

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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

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By Jim100
17th Jul 2013 14:18

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

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By occca
17th Jul 2013 16:23

Thanks Jim

Is there not a problem with the employee being in the states for a week a month?

I thought it would be a lot more complicated than this

 

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By Jim100
17th Jul 2013 17:48

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

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