W2 employee with no UK income question

Ok This question isn't for this tax season so we can all relax.

BUT, I am getting married in October to a UKC then moving to Hull, still retaining my US job (W2 employee) If I can continue earning the same amount of money, I will have no need to get a second job in the UK.

My question is, When tax season for 2007 comes up next year, will I be able to file my usual 1099 form as Married Filing Joint (and will I need an ITIN for him?) or will I have to file Married Filing Separate. His income is less than $80k, if that's a factor, mine is as well. Hell together it still isn't $80k


How would this change if I had to get a job in the UK as well as retaining my US job? (less than $80k income I'm sure)

Separate thought
... because of my lack of a UK job, will I still be able to get a NIN? I've heard it's almost a catch 22. You have to have a job to get one, you have to have one to get a job.

Thanks everyone!

Now I'm confused!  You talk about your 1099 form, I guess you mean 1040??

OK so you'll be working in the UK for the US employer.

So the US employer has to deal with UK items such as withhholding UK PAYE tax and national insurance, whether your presence in the UK creates a permanent establishment of the US entity in the UK (so the US entity has UK corporate filing requirements) along with other stuff like possibly having to be registered for VAT.

Most of this is the employers responsibility, but you'll still need to budget for paying UK tax & NI on the job, instead of US withholding which is probably lower than what you'll have to pay in the UK.

Is your employer sorted on what it has to do?

sorry I meant 1040! I get those 2 mixed up way too many times. sorry. I am not a 1099 employee I am a W2.

my employer has to do all this? for my measly yearly earnings of $7000? He's not going to want to do this I don't think. The man dosen't even know how to read an email. This has me worried now.

Just to clarify things, I am not going to be working for the UK office of my company (because there is none) ... I will be working from home in my underwear. Just like how I work from home here in the US.

This is NOT good, oh man I am super worried now. if he has to do all that, and it does sound like quite a bit of work to do for a small business owner who's office staffs about 3 or 4 people, looks like I will have to do my work for free untill I return in 3 years and just get a UK job. I can't just leave him stranded.

1)  If the company has no Permanent Establishment in the UK, they do not have to withhold UK taxes.  PE includes:  Office in UK or certain clients located in the UK.  If the company has no clients or office in the UK, it doesn't have a PE in the UK, so no UK w/h is required. If there are some clients in the UK, this may or may not result in a PE. 

2)  The total income will probably below the PAYE minimum amount anyways, so it may be moot to determine PE.

3)  If you still retain your US job, you can stay on US SS, but your Fed and state w/h goes down to zero.

4)  You will have to file in the UK and pay tax in the UK on your US earnings.  Keep your payslips for determining the tax.

Well that sounds a whole lot more comforting. Whew!

ok so now he won't be taking out for taxes (except SS). So I will have to report them to the UK? Won't that mean I will have to pay taxes to both US and UK? I guess  I should be asking our CPA if she knows anything about any of this, you never know.

What are my chances of finding an accountant who is knowlegable in US and UK taxes in Hull? (and a cheap one at that, as I said, my yearly earnings are about $7,000 not £)

Good thing I am a Texas resident and I don't have to worry about state taxes...

Feeling better but still a little uneasy.

1. To avoid liability to UK social security ideally the US company should apply for a certificate of coverage to US social security.
2. Looking at the numbers given you'll probably qualify for working tax credits once you are married/living together in the UK so do investigate this; I'm not certain if the spousal visa will let you qualify though but as your partner is British you may qualify...
3. You can file a form 973 with your US employer to avoid US withholding.

Regarding the certificate of coverage, an accountant over here who does both tax returns could assist you, so your boss doesn't have to deal with it. 

It's not manditory to have in advance, but if the IRS or UK Inland Revenue ever request a copy at some future date, then you'll need to obtain one.  Having it in advance saves you the trouble of getting one last minute at a later date.  Personally, I haven't had any clients for whom the IR or IRS have requested this; however, I know other accountants who did get the occassional request.

Thank you both for your information.

Looks like I just may have to contact an accountant who deals with both IR and IRS, doubt if I will be able to find one in Hull, but If there's one as close as Leeds it's worth a shot. Hell a trip to London would be worth it as well if I can really get back a heafty refund.