Author Topic: Working for a US company while living in the UK  (Read 703 times)

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Offline MrsLaw

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Working for a US company while living in the UK
« on: December 05, 2016, 06:51:35 PM »
Hello everyone! I have a question about maintaining US employment while in the UK.

My family will be moving to London in January. The company my husband currently works for (in the US) wants to keep him on as an employee (he works 100% remotely) once we've moved. Does anyone have any experience with how that works?
This will be a first for his company, so they have no experience either but are trying to figure some things out.
Any help would be greatly appreciated! Thanks!

Offline physicskate

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Re: Working for a US company while living in the UK
« Reply #1 on: December 05, 2016, 07:09:39 PM »
Hello everyone! I have a question about maintaining US employment while in the UK.

My family will be moving to London in January. The company my husband currently works for (in the US) wants to keep him on as an employee (he works 100% remotely) once we've moved. Does anyone have any experience with how that works?
This will be a first for his company, so they have no experience either but are trying to figure some things out.
Any help would be greatly appreciated! Thanks!

Does he have the legal right to work in the UK?

He would still have to file taxes in US, but also in UK... double taxation treaty will apply, but taxes are generally higher in the UK so he might owe more than he would if he were just living in the US.
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Offline MrsLaw

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Re: Working for a US company while living in the UK
« Reply #2 on: December 05, 2016, 07:13:45 PM »
Does he have the legal right to work in the UK?


Yes. He's a UK citizen.

I guess our question is really more to do with his company, rather than him. As in, will his company have to do anything differently when we move?

Online KFdancer

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Re: Working for a US company while living in the UK
« Reply #3 on: December 05, 2016, 07:45:10 PM »
They will either need to issue him a UK work contract (unlikely) or your husband needs to become a self-employed contractor and invoice them.  As he will be resident in the UK, he'll pay tax to the UK, then claim a credit or exclusion when he files his US taxes (if he has US tax obligations.  Will depend on his current status in the US).

Offline MrsLaw

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Re: Working for a US company while living in the UK
« Reply #4 on: December 05, 2016, 08:13:19 PM »
They will either need to issue him a UK work contract (unlikely) or your husband needs to become a self-employed contractor and invoice them.  As he will be resident in the UK, he'll pay tax to the UK, then claim a credit or exclusion when he files his US taxes (if he has US tax obligations.  Will depend on his current status in the US).

So him becoming a self-employed contractor is mandatory? He isn't legally able to continue as a salaried employee for the company?

Online KFdancer

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Re: Working for a US company while living in the UK
« Reply #5 on: December 05, 2016, 08:59:04 PM »
If they go to the trouble and expense of giving him a UK employment contract, he can remain salaried.  That would be things like 28 minimum holidays a year, paternity leave, sick leave, etc.

He's not able to continue with the same arrangement he has now, as he will now pay tax and national insurance to the UK instead of tax and social security to the US.

Offline MrsLaw

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Re: Working for a US company while living in the UK
« Reply #6 on: December 05, 2016, 09:11:50 PM »
If they go to the trouble and expense of giving him a UK employment contract, he can remain salaried.  That would be things like 28 minimum holidays a year, paternity leave, sick leave, etc.

He's not able to continue with the same arrangement he has now, as he will now pay tax and national insurance to the UK instead of tax and social security to the US.

Thank you very much for the information!

Offline jinjin

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Re: Working for a US company while living in the UK
« Reply #7 on: June 20, 2017, 01:47:45 AM »
Hi--I might be in the same situation as your husband (though my current company has an office in the UK so I might see if they could hire me but it's not as easy as it sounds). Anyway, was wondering how this all shook out and if you had any advice as to living in the UK and working remotely?

I will likely be on a spousal visa but could travel back and forth to the US from the UK.

Offline MrsLaw

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Re: Working for a US company while living in the UK
« Reply #8 on: July 31, 2017, 09:35:23 PM »
Hello there! Sorry for the late response!

Long story short: the US company could not keep him on as an employee unless he was living in the US. He basically had to quit in order for them to hire him on as a private contractor. Here in the UK he had to register as self-employed. He hired an accountant who set that all up for him and will be taking care of his taxes.
Hi--I might be in the same situation as your husband (though my current company has an office in the UK so I might see if they could hire me but it's not as easy as it sounds). Anyway, was wondering how this all shook out and if you had any advice as to living in the UK and working remotely?

I will likely be on a spousal visa but could travel back and forth to the US from the UK.

Although the money is good, the hours are not. The client he is working for is based in NYC, so he is stuck working EST hours. So, that may be something for you to consider also.

Hope that helps and best of luck to you!

Offline sking206561

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Re: Working for a US company while living in the UK
« Reply #9 on: January 04, 2018, 02:04:49 PM »
Hello there! Sorry for the late response!

Long story short: the US company could not keep him on as an employee unless he was living in the US. He basically had to quit in order for them to hire him on as a private contractor. Here in the UK he had to register as self-employed. He hired an accountant who set that all up for him and will be taking care of his taxes.
Although the money is good, the hours are not. The client he is working for is based in NYC, so he is stuck working EST hours. So, that may be something for you to consider also.

Hope that helps and best of luck to you!

Wondering if you could give insight into how much taxes you are having to pay between the 2 countries? I am being offered basically the same thing. I work for a company in the US who has footprints in the UK but they want to have me go contract and bill by the hour. Based on their work orders and my cost I am hopeful to make around $100K. BUT after I did some basic research on the double taxes I look to walk away with less than $40K.  I know there are deductions and the such, but I was curious how the net sheet worked out for you (or anyone else viewing).

Any insight is appreciated.
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