UK Citizen Self-Employed and Contracting for a US Company

[noxley2014]

Hi all

I am looking for some clarity here - I have tried to ask the IRS, but it seems that they don't know the answer to my question.

I've been offered some work with a US company. I am a self-employed contractor based in the UK, and pay UK income tax. All my current clients are UK-based - this would be my first US client. I would be performing this work remotely - all work performed will be performed in the UK, from my home office. I will not be travelling to the US to perform work in any capacity. I am not a US person (I've never even been there) and so am classed as a non-resident alien, and my client will pay me independently of their payroll, directly into my UK bank account. I would be operating for them not as an employee, but as a self-employed, independent contractor. Just a note - I am not a limited company - I am a sole trader.

My question is, under these circumstances, must I pay US income tax, and is my income subject to withholding? If not, is there anything I need to declare to the IRS/ask the Client to declare to the IRS?

Many thanks for your help!