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Topic: US Citizen as UK Ltd Company Director in the UK via spouse  (Read 409 times)

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US Citizen as UK Ltd Company Director in the UK via spouse
« on: June 26, 2017, 08:31:41 AM »
Hi,
I'm hoping to find some advice on my partners business (It is a UK Ltd company and he is a UK Citizen). I am a US Citizen moving to live with him at the end of the year. He runs his own small business and was wondering the tax / liability implications if I was employed as a director and paid via a wage / dividends.

I understand this is a very common thing to do with two UK citizen spouses. But I was wondering what the implications are for me being a US Citizen.

Questions:

1. Would I be liable to pay tax to the UK & USA or just one?

2. Are there any employment rules or hurdles for being a director / shareholder as a US Citizen?

3. If I am only liable for USA tax, what are the optimum thresholds for self-employed in the USA. Is it best to pay up to the lowest on wages and then dividends?

I am hoping someone has ran into the same questions I am asking here, alternatively does anyone know the best place to get advice on this?

Thanks!
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Re: US Citizen as UK Ltd Company Director in the UK via spouse
« Reply #1 on: June 28, 2017, 02:48:10 AM »
Alternatively does anyone have a good contact I could get in touch with to find out about this?
Priority Spouse Visa

Married - October 2017
Online Application - Oct 26, 2018
Biometrics & Documents Sent - Oct 29, 2018
Application Received Email - Nov 23, 2018
Decision Made - Dec 7, 2018
Passport Received - Dec 10, 2018
Decision - APPROVED


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Re: US Citizen as UK Ltd Company Director in the UK via spouse
« Reply #2 on: June 28, 2017, 06:55:05 PM »
LAtoUK should start with a basic understanding of her tax position.

The key points are-
•   As a UK resident, she is taxable in the UK on her UK source income under UK domestic rules.
•   The US chooses to tax its non resident citizens even when non-resident. So she is taxable in the US.
•   There is a double tax treaty between the UK and the US. Most of the provisions in the treaty do not apply to US citizens. The Articles that do apply basically confirm that the UK has primary taxing rights on UK source income and the US needs to give credit for UK tax payable.
However, this is only an overview of the position. There is a lot of detail that may be relevant.



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