US company hiring UK citizens in UK

US company hiring UK citizens in UK

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Hello, 

I would like to ask about employing UK citizens by US company in UK.

US company is not registered in UK and is not UK entity. They want to hire UK workers for short engagement (6 weeks).

UK workers all claiming they are registered self employed and wants to issue invoices.

Does US company have to register with PAYE in UK or declaration/ form W-8BEN is sufficient for US company?

I hope that makes sense.

Thank you

Replies (4)

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By User deleted
23rd May 2015 13:05

Assuming the US company has no tax presence in the UK (not UK resident, has no permanent establishment, does't trade in the UK etc etc) it is under no obligation to register for PAYE. 

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By David Treitel
23rd May 2015 15:21

The workers could all supply W-8BENs, but the question is asking about employees which makes one assume the workers are actually employees; so each will need auto-enrolled pension plans offered to them and the employer would need to comply with local employment law.

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By Peter666
24th May 2015 14:25

Thank you taxguru and David for your reply.

What if one of the people company wants to engage isn't self employed? Can this person still invoice if claiming (or will sign any declaration) that will deduct taxes and report it to HMRC.

Or - in that case - would that be mandatory for US Company to register with PAYE?

I'd appreciate your reply.

Thanks

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By King_Maker
25th May 2015 09:48

If there is no UK employer ("tax presence"), there will be no liability for Employer's NIC.

However, the employee will effectively have to operate PAYE himself/herself. HMRC need to be contacted to set up the relevant scheme.

Care needs to be taken that the existence of UK employees does not of itself constitute a "tax presence", depending on their status and authority parameters.

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