Tax Advice for Working for US Company Please!!

Dixeydell999

Hi,

I really need some tax help .. my Husband is going to be offered a job in the US but will be based in the UK. Looking at it, I can't see how it would work as they do not have a UK presence to run payroll so how would he pay tax? Someone said about he'd have to contract and set up a Ltd company to do a self assessment BUT wouldn't he fall into IR35?

Please help! A bit confused and stuck with what to do ...

Thank you

xylophone

http://taxaid.org.uk/guides/information/special-groups-carers-students-migrant-workers-and-moving-abroad/migrant-workernew-to-the-uk/overseas-employers

may be relevant.

agrinnall

Falling into IR35 isn't an issue in itself, it just means that his Limited Company would have to treat him as an employee and pay him through PAYE rather than using dividends to be more tax efficient.

Dixeydell999

Thanks, I have just called HMRC and was advised I can just do a PAYE myself using their free system, and not have to set up a Ltd company at all? Anyone know anything about this?

xylophone

From link above:

"3 – If no person in the UK is deemed to be the employer, then PAYE will not be operated on pay to the employee. Instead they will be considered as being paid gross of tax and will have to complete a UK tax return and pay the tax themselves through the self assessment process.
If necessary, the employee may also need to pay their National Insurance Contributions to HMRC through a ‘dummy’ payroll scheme. In effect they will need to make quarterly payments to HMRC on their own behalf."




http://www.hmrc.gov.uk/manuals/pommanual/PAYE20100.htm

I wonder is the above relevant? When you rang, what were you told about how to proceed?

Presumably your husband already has a UTR? He may need to set up for on-line Self Assessment?

Cook_County

Your husband's employer will probably have a PE in the UK and be required to register for & pay UK corporation tax. Your husband will need an English law employment contract. Can the US employer cope with English employment law?