This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

US/UK Corporation Tax Liability for UK citizen working in US?

uk-us-remote-worker
Posts:2
Joined:Fri Aug 05, 2022 8:32 am
US/UK Corporation Tax Liability for UK citizen working in US?

Postby uk-us-remote-worker » Fri Aug 05, 2022 8:44 am

Hi,

Thank you for looking, if you do!

In simple terms...

- We run a UK Ltd
- We have been using an IT sub-contractor, remotely in the US
- And have been paying him gross, no deductions. He invoices. We pay
- He is British, but has US residency
- We are NOT the only company he has been working for over the last couple of years. He has had multiple clients

A couple of questions...

- should we have been paying any UK or US taxes on his behalf?
- I have no idea whether he has declared any of his income either from us, or anyone else, to either the UK HMRS or US IRS

Do we have any tax liability, US or UK? CT, PAYE or NI?

Many thanks.

Fiona

darthblingbling
Posts:515
Joined:Wed Aug 02, 2017 9:09 pm

Re: US/UK Corporation Tax Liability for UK citizen working in US?

Postby darthblingbling » Fri Aug 05, 2022 2:30 pm

If he's non uk tax resident and not performing any duties whatsoever in the UK then from a UK perspective you should be ok to not withhold PAYE or NIC.

Whether any US obligations arise is a different matter however and would need input from a US specialist.

Generally speaking, obligations will arise if the UK company has a 'permanent establishment' in the other country. Each country can interpret this in different ways so local advice is recommended.

uk-us-remote-worker
Posts:2
Joined:Fri Aug 05, 2022 8:32 am

Re: US/UK Corporation Tax Liability for UK citizen working in US?

Postby uk-us-remote-worker » Fri Aug 05, 2022 2:53 pm

Hi,

Thank you so much for your input.

He's never done any work for us while in the UK, and we don't have any overseas presence.

I'll sleep better, now!

His tax exposure in the US has 'nowt to wi' me!

Thanks again,

Fiona


Return to “International Tax”