How to receive US Dollars for work in the UK

JeremyE

I have a new full time employed job and the company is in the USA. So they will be paying me in dollars each month, which at the moment will go to my Starling Bank account and be converted to pounds.

Is this the best way to receive money if you employer is in the USA or is there a better bank account than Starling?

Also, how does it all work with taxes if you are a UK citizen working for a foreign company in the US? Do I pay taxes to the US and the UK?

gm0

US/UK tax treaties protect against double taxation.  But both ends love their forms.  And there are declarations and filings to make.  You want to do UK tax. And not have to file an IRS return.  That is the target.

HSBC Global - will likely do a multi-currency setup / USD account for you.  But there may be qualifying criteria.

Google BIC/IBAN and learn about how they can send USD to you.  Ideally you want a USD account here with a functioning inbound USD regular payments interface.  The US payroll provider - will be able to do this - or not - depending on what they have had to do for this employer before. 

You want a properly plumbed in one.  Not somethng archaic normally used for one off transfers.  And you really - *really* - don't want to see a USD cheque - as the "clearance" process for US cheques returning to US banks is interestingly primitive and prone to delays and lost cheque loops.  Delayed clearing = delayed money.

For IRS - your employer should really sort you out so you are a non-resident alien. Properly declared to the extent needed and filed as of no interest to the IRS.  I suggest you "confirm" they have done what they need to in 2024. You are not the US expert.  My knowledge is old.

On the UK end you need to read up on how to apply dollar/pound rates to declare income correctly to HMRC on your self assessment tax return which you will doubtless be making at some point.

You are likely not getting paid here properly as a UK employment via the employer filing / nI system.  P60. P45. P11D.  As this will probably be a US contract and so a US employment and overseas income viewed from here. A non-resident alien (in US terms) with an overseas normal place of work/WFH. 

They will most likely ignore all the UK NI stuff, pensions stuff applicable to a UK employment. So you need to think about paying your own stamp to accrue state pension years. 

This is the bit were a small US employer can create problems for themselves (and you) if they are on a journey to have a UK office but only have you/a few - at the moment and they stumble into employing you here.  But not doing it properly.

If they give you (or all employees - as is common in startups) any options or shares at any point as bonus - anything not cash. Then you also need the non-cash income forms like W8-BEN filed at the US end.

Good luck figuring it out.

Marcon

gm0 said:

You are likely not getting paid here properly as a UK employment via the employer filing / nI system.  P60. P45. P11D.  As this will probably be a US contract and so a US employment and overseas income viewed from here. A non-resident alien (in US terms) with an overseas normal place of work/WFH. 

They will most likely ignore all the UK NI stuff, pensions stuff applicable to a UK employment. So you need to think about paying your own stamp to accrue state pension years. 

...or ensure you have a proper contract in accordance with UK laws, since that's where you are.

penners324

Your employer still has to pay NI & Paye.

There are plenty of online payroll companies that will do cross border payroll.

Maybe suggest 1 of these to the new employer?