Options for UK sponsor with a US-based employer, income in USD

It seems very similar to the recognized CIS that we (I) just learned about a few days ago, except FMP isn't limited to the construction industry.  Thing is, CIS is specifically mentioned as acceptable...

Hi there, I'm curious if you think FMP (or similar) would work for an American moving to the U.K. wanting to keep my US job. Would I be taxed double on every paycheck?

This thread has been so helpful! Thanks!

As an American in the UK you’d pay just UK income tax through the umbrella company, and then declare it on your 1040 each year. So your regular payslip would reflect only UK tax, same as if you were an employee at a UK company. You’d just have to handle the same income tax implications, using the foreign earned income exemptions and such, when you file your taxes every year.

In my situation I no longer pay US tax or receive any US tax documents. I only receive UK tax documents and I only pay UK tax.

I am not and have never been a US citizen or green card holder and therefore I no longer even file a US tax return. I do file a UK self assessment each year however.

If you are a green card holder or US Citizen you will be required to file a US return with your UK income on it. There is a tax treaty between the UK and the USA to avoid double taxation however it only covers 90k of income, after that I think there is a change of double taxation but I am not 100% sure about how all that works because it has never impacted me.

There is a bill about to go through congress that will try to remove taxation of US citizens and permanent residents global income. This would make things much easier for many ex pats. It remains to be seen if it will pass.

In my situation I no longer pay US tax or receive any US tax documents. I only receive UK tax documents and I only pay UK tax.

I am not and have never been a US citizen or green card holder and therefore I no longer even file a US tax return. I do file a UK self assessment each year however.

If you are a green card holder or US Citizen you will be required to file a US return with your UK income on it. There is a tax treaty between the UK and the USA to avoid double taxation however it only covers 90k of income, after that I think there is a change of double taxation but I am not 100% sure about how all that works because it has never impacted me.

There is a bill about to go through congress that will try to remove taxation of US citizens and permanent residents global income. This would make things much easier for many ex pats. It remains to be seen if it will pass.

Do you hold a visa to work as an employee for a US company then? Just wondering how this is legal if you aren't authorized to work in the US still. Seems like its skirting international employment laws.

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You only need a visa to work for an American company if you are physically present in the USA. I am not. Google, Facebook, Apple, and a million other USA based companies have employees all over the world and none of them need visas....

I get how this works with already being resident in the UK, but what about the requirement of having a UK job offer starting within 3 months (in order to sponsor the spouse)? Would it all fit that requirement??

If I recall (this is going back five years now for me) - when my wife and I made the initial UK visa application from within the USA we used cash savings to get around all the pay slip issues. Once we moved to the UK we spent all our money on a house and it was at that point forward that I used the FMP pay slips.

I think you can still use pay slips but you may need a letter from your employer stating that you are continueing to work from the UK or something like that. One of the other members here will no more about that that I.

In my situation I no longer pay US tax or receive any US tax documents. I only receive UK tax documents and I only pay UK tax.

I am not and have never been a US citizen or green card holder and therefore I no longer even file a US tax return. I do file a UK self assessment each year however.

If you are a green card holder or US Citizen you will be required to file a US return with your UK income on it. There is a tax treaty between the UK and the USA to avoid double taxation however it only covers 90k of income, after that I think there is a change of double taxation but I am not 100% sure about how all that works because it has never impacted me.

There is a bill about to go through congress that will try to remove taxation of US citizens and permanent residents global income. This would make things much easier for many ex pats. It remains to be seen if it will pass.

Non US persons still have to file US tax returns if their US source income is over a certain threshold.

Non US persons still have to file US tax returns if their US source income is over a certain threshold.

What counts as US source income? From my perspective my income is UK source via the UK payroll company. I have long standing tax advisors who prepare my UK and US returns (when I filed them still) and this never came up as an issue.