Hi folks. I've looked through the forum, and discovered much helpful information, but the answers relating to taxes are often very technical and sometime conflicting, so I'm hoping one or more of you may be willing to help provide some additional input and clarity here.
The situation:
I'm a US citizen, resident in the UK. I have a Tier 2 ICT Spousal Visa. A company in the US wants to use me as a contractor on 1+ projects.
The question I'm looking to answer:
I'm unsure of the income reporting need to the HMRC (British IRS), and the implications to this engagement, in terms of withholdings on the US vs. UK side.
For starters, it's unclear to me whether I need to register as a sole trader in the UK and report US freelance income as a UK resident. One document I read ( newcomer link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/366836/rdr1_1_.pdf [nonactive] ) seemed to indicate that I might be able to avoid UK tax on an arising basis, and instead pay on a remittance basis, as I'm "domiciled" outside the UK. Basically, that means I wouldn't have to pay tax on the U.S. income as long as I did not remit the funds to the UK. Sounds good to me, but I suspect my takeaway could be off, as I'm not a tax person, or, for that matter, an adept reader of tax guidance docs.
Perhaps more fundamentally though, I'd like to know whether I need to give the US company anything other than an EIN to get rolling, and whether they need to withhold anything more or less for U.S. tax purposes.
Your input is appreciated. Naturally, I understand professional tax advice is likely warranted here. Your input here will help further shape that conversation.
