I'm trying to find out the most cost efficient way to get paid and what my options are. I have no experience of this
so have no sense of how I will be paid, what the taxes will be etc. I'm liaising with my potential employer for details but want to ensure the advice they give is correct. My usual UK process is to simply invoice the full amount (with VAT) and then complete my UK tax return at the end of the year and VAT return quarterly. I’m being offered a contract of 14 weeks and planning the following:
- 1 week will be consultancy from the UK - I'll invoice and will be paid into a UK USD account and transferred into my GBP UK account
- 1 week will be a trip to the US, 1x month before I'm due to go out - I'll invoice and will be paid into a UK USD account and transferred into my GBP UK account
- 12 weeks will be relocating there (with my family joining for 9 weeks) - I'll open a US bank account and invoice some of my earnings to be paid into that
- On return to the UK, I'll do a final invoice which will be paid into UK USD account and transferred into my GBP UK account.
Questions:
- Is all of the above the most tax efficient way to manage my income?
- What's the process for invoicing / payment in the US?
- Am I able to keep my self-employed status or is there an auto-tax system?
- Is there a way to remain self-employed and invoice / receive the full amount so that I can claim tax on all my relocation expenses which are around £20k?
- Does it make any difference that I'll be receiving and withdrawing some of the money in the UK, and some in the US?
Any help gratefully received!
