Working for a US-Based Company While Living in the UK

My husband was transferred to the London office of his law firm from  NYC.  I will continue to work for my current company while we are living there, approx. 3 years.  I know that I am authorized to work in the UK, but I am interested in finding out about the tax implications for both me and my employer.  Can anyone recommend a good source for information on this?

Hello. I'm not a tax lawyer. I'm a UK citizen and a dual qualified US/UK lawyer practicing law in the US. I mostly advise entrepreneurs, business people, and British-American couples/families on US (and "some" UK) immigration law and those common legal matters affecting UK expats in the US, and US expats in the UK. Tax is one area I try to avoid though, apart from the basics.

"My understanding" (this is not legal advice) is that so long as you are working outside the US you are exempt from paying US taxes in income up to approximately $97,000, though you still have to file a return. You can also claim a credit for any UK taxes you pay against any US taxes you owe above the $97,000 threshold (but not below it of course).

I too hope to move back to London in a few years to practice law and will be facing some of the same issues as yourselves, though I doubt I'll earn over the $97,000 threshold!

Good Luck.

Your US employer is responsible for UK payroll deductions and adhering to UK employment law eg holidays, maternity benefits. Or you could choose to be self employed, and bill the US organization for your hours. In this case you will be responsible for taxes etc.

And, as a US citizen, you are required to file US tax returns, including all worldwide income.