Natwest Fees for receiving International Payments (USD)?

P1Fanatic

Hi. My employer (US company) has started some stock share scheme where international employees get a financial equivalent and its paid through Fidelity.com which defaults to USD currency and they charge a 2.5% conversion rate. I am trying to work out what Natwest charges are for such a transaction. Last year they charged a £7 fee for taking an international payment but here they also mention a "margin" for conversion:

https://www.natwest.com/business/support-centre/making-and-accepting-payments/electronic-payments/receiving-international-transfers.html

But finding out the actual rate used seems difficult. I found this which mentions 3.7% but is talking about GBP to USD rather than USD to GBP:

https://moneytransfers.com/banks/natwest#:~:text=NatWest exchange rate margins vary,idea of the margins charged.&text=Customers pay different amounts on,the transfer amount and destination.

I have two payments so have sent the first one as USD and will probably do the 2nd as GBP just for comparison. But I am curious to know what Natwest should be charging (I did look at last years USD transfer and there is no mention on the transaction of a conversion rate).

Daliah

You'd best ask Natwest what their charges are, then you know for certain.

But does it have to be Natwest / Fidelity, or could you use a USD account with someone like Wise or Fineco Bank?

MDMD

Also, given it is likely to be subject to income tax and NI in some form, why aren’t they putting it through the UK payroll and the company bearing the bank charges and FX fees. If only to ensure they pay the employer NI due on it…

Daliah

MDMD said:

Also, given it is likely to be subject to income tax and NI in some form, why aren’t they putting it through the UK payroll and the company bearing the bank charges and FX fees. If only to ensure they pay the employer NI due on it…

I am no taxation expert, but I doubt a US company would be subject to UK tax law when they employ a UK resident.

The UK resident is obviously subject to UK income tax legislation, and would be well advised to also pay UK NI.

Goodness (or the OP) knows what tax becomes due in the US.

penners324

A US company IS liable/subject to UK tax law when paying UK residents 

Daliah

penners324 said:

A US company IS liable/subject to UK tax law when paying UK residents 

Really? Obviously, the UK resident is extremely likely to have to pay UK income tax (depends on their actual tax domicile status) but I doubt that the powers of HMRC, or UK Law, extend to taxing companies who are not registered in the UK.