UK Resident working online for a US company

[pinkfreesia67]

I am a UK resident living in the US working for a US company. I am returning to the UK next year to live and the US company I work for has asked me to continue working for them over the internet from the UK. I understand I will be liable for UK taxes.

How is the best way to get paid? It was my intention to have salary paid into my US bank account. I read somewhere that it is best to invoice the US company for my services (I am registered as self employed) rather than be an employee. My employer is unsure if she is legally able to employ me so this may be the way to go. Any advice you can give me or my employer would be very much appreciated.

[innovativetax]

If you continue to have employee relationship with your employer on arrival to the UK and the US company has no physical presence in the UK, you would be obliged to operate PAYE on your earnings. Self-employment may avoid the PAYE issue if you are properly self-employed. Hope this helps.

Odiri Tax Consultants
www.odiritaxconsultants.com

[guya]

When you live in the UK you and the employment will become subject to English (or Scottish) employment law. The concept of self-employment is - broadly speaking - more restrictive here in the UK than in the United States.

Your employment will thus become subject to local employment law here in the UK.

You may nonetheless have to cope with UK corporate tax as your presence here may constitute a permanent establishment of the US entity so requiring addressing such things as UK corporate filing, VAT and transfer pricing.

The employer in the US will seperately need advice on US withholding issues.