Paid USD, whilst living in the UK.

Jimbomcmucka

Hi all,
I found a thread on this conversation, but it was a couple of years old - so wanted to know if there is any newer information.

I am in the process of discussing a contract with a US firm. I will be employed as a consultant and paid in USD, but will be based in the UK 100% of the time. What are my options in regard to receiving USD and converting to GBP for my day to day shopping, bills etc?

I have an account with nationwide. They have advised that they do not charge a fee to receive USD, however they do say "The exchange rate for payments into your account may be different, as the foreign currency payment for your account will be sent by the sending bank and when we receive it we will convert it into Sterling using our latest standard inbound exchange rate. This transaction will show on your account statement." - I was expecting that they wouldn't be operating at the true rate, but the lack of clarity on the rate they use concerned me..

Any suggestions of the cheapest way for me to receive my salary and be able to use it?! I have a feeling I will get stung whichever way I try, but worth asking the qurestion!
Thanks
Jim

colsten

You could check Transferwise or Fineco Bank. 

Zellah

AFAIK Nationwide use HSBC exchange rates for incoming forex payments so the OP will get stung very badly. As above, best bet is to use Transferwise or Finceo.

PRAISETHESUN

As above you want to handle the currency exchange yourself. Pretty much any USD account will fit the bill to receive the money, and then use a different service to handle the currency exchange. I can also recommend Transferwise. Just keep in mind the deposit protection on offer for whichever account or service you end up using, as some don't have the usual FSCS protection.

eDicky

You do need an account to receive the unconverted dollars, in order to avoid being stung by Nationwide (or any other mainstream bank) on their rates, which as you say feature total lack of clarity. Look into the solutions mentioned above.

MDMD

Jimbomcmucka said:

I will be employed as a consultant and paid in USD, but will be based in the UK 100% of the time.

Although not your original question (and one for the tax board) but how are you contracting with them? Are you employed on the payroll or self employed as a sole trader or working via a limited company? Normally a “consultant” is not an employee but one of the other two, leading to a number of potential tax exposures for them.

It’s probably worth putting your situation through the HMRC status checker and asking (maybe getting something in writing too) that they have considered this / sought professional advice.

https://www.gov.uk/guidance/check-employment-status-for-tax