bank account for remote US work while in Uk

Hi I am a dual citizen of US/UK and about to sign contract with US company as a contractor while I live in the UK. I will get paid in US dollars - what is best way to  manage this money?

Should I have them pay into my US account and then transfer to UK bank account with Wise when rates are good?

Or would it be better to just set up a Wise or Revolut account and keep that as my separate business account.

Otherwise,, I will have to open a separate UK account for this work I assume. My accountant has told me to keep a separate bank account for any contract work.

Any advice would be great! Thanks in advance!

The UK has the primary right to charge tax & NIC on the worldwide income & gains of residents of the UK. The engager of the work may have an obligation to withhold UK tax and pay this to HMRC.  The location of the payer has no consequence.

Whilst tax and NIC will primarily be paid to the United Kingdom, it is unclear from the question as to whether the status of the engagement will be one that is of ‘employment or - alternatively - self employment. Employment status is not a tax question, status is a legal matter. You may wish to speak with an employment lawyer to discuss the status of the engagement.

Thanks for this info. To answer your question, I am self employed.  In terms of taxes, I assume I just do a self assessment for this work. And just report in my US tax return as part of my UK income. Doesn’t seem like I need a tax advisor as this seems straight forward. However if missing something - let me know.

My question was more about whether getting an online  bank account with dual currency makes sense or if I should have the US company pay into a US account and then use something like WIse to transfer to a UK bank account. I am just trying to get recommendations on how best to manage my money when working for a US company while in UK as a dual citizen. Does anyone have further thoughts on this?

Many thanks,!

The location of the customers of the business may have some effect on whether you are required to charge VAT (but not as to whether you may be required to register). It may affect whether or not profit of the business is subject to US State income tax.

You are required to keep business records, so would naturally want to use accounting software - ideally any business owner would want to use a bank that automatically feeds banking data to the selected accounting software. Because MTD is getting ever closer, most accounting software has these functions.

Do I need to fill out a W9 or W8 form for my US employer while I work remotely in the UK as a dual citizen. I will be paid in dollars that will go to a dual currency account. I will be paid in three different installments. I am a sole trader in the UK and will fill out my self assessment form, as I am working in UK. I am not registered for VAT because i make less than the threshold for my consultancy work. I also have  income from my part- time job in the UK .

So I will do my U.K. and US taxes and assume because of US- UK tax treaty i would only end up paying  for UK taxes.

Any further comments on this ?

Many thanks,

Lori

Do I need to fill out a W9 or W8 form for my US employer while I work remotely in the UK as a dual citizen. I will be paid in dollars that will go to a dual currency account. I will be paid in three different installments. I am a sole trader in the UK and will fill out my self assessment form, as I am working in UK. I am not registered for VAT because i make less than the threshold for my consultancy work. I also have  income from my part- time job in the UK .

So I will do my U.K. and US taxes and assume because of US- UK tax treaty i would only end up paying  for UK taxes.

Any further comments on this ?

Many thanks,

Lori

Lori - Neither a W-8 or W-9 are at all relevant because the income is not US ECI. The treaty permits you to elect to claim credit in the US for UK income tax paid. Since the engager of the work is described as an "employer", it is most likely that the status of the engagement is one of employment, rather than self-employment. It would be prudent to take advice from an employment lawyer.

Hi I should clarify further I am self-employed and I am a consultant/contracter for that  US company and they are asking me if I should fill out a w8 or a w9 form before they pay me.

In this case do I need to fill out one of these forms?

Thanks

Hi I should clarify further I am self-employed and I am a consultant/contracter for that  US company and they are asking me if I should fill out a w8 or a w9 form before they pay me.

In this case do I need to fill out one of these forms?
No. These forms are not relevant at all.

Thanks

Hi I have been told by company I have to fill out a form. They are suggesting the W8 because I am getting taxed for this in UK. If I had to choose between W9 and W8, which one would I choose?

Thanks again for all the feedback!

Hi I have been told by company I have to fill out a form. They are suggesting the W8 because I am getting taxed for this in UK. If I had to choose between W9 and W8, which one would I choose?

Thanks again for all the feedback!

Neither - the income is foreign source. US withholding has no relevance at all.