US citizen living in the UK working remotely for a US company - tax situation?

Hi there,

A bit of a complicated question to do with US/UK remote working and tax.

I’m a US citizen with a two-year UK graduate visa (commenced April 2022).

I’m splitting my time between my family home in the US, and my flat in the UK. I would say around a 65% of my time is in the UK, 35% the US.

A few months ago, I started working for a US company remotely, based from my US address. I carry out my work with them when I’m in the US and when I'm the UK. On the side, I do a little bit of ad-hoc creative work in the UK (a couple hundred pounds a month max). I have a UK National Insurance number.

Based on all of that info, where should I be paying tax? Any advice would be hugely helpful, as I am at a complete loss.

Also, if anyone could recommend a good tax expert / lawyer / accountant who specializes in this kind of situation, I would really appreciate it!

Many thanks,

Paul

Your employer should pay you your gross pay (no withholding). You then file a UK self-assessment for your taxes and offset USA taxes with what was paid to the UK.

Only real question is have they changed the employment rules for student visas?  It used to be that you couldn’t be self employed on a student visa (which is how this set up is classed).   Sorry, I see that the graduate visa type allows you to be self-employed.  So whichever way your contract is set up, you are good. 

Everything changes if your US company has a UK entity and you have a UK employment contract.  Then you wouldn’t be self employed.

Your employer should pay you your gross pay (no withholding). You then file a UK self-assessment for your taxes and offset USA taxes with what was paid to the UK.

Only real question is have they changed the employment rules for student visas?  It used to be that you couldn’t be self employed on a student visa (which is how this set up is classed).   Sorry, I see that the graduate visa type allows you to be self-employed.  So whichever way your contract is set up, you are good. 

Everything changes if your US company has a UK entity and you have a UK employment contract.  Then you wouldn’t be self employed.


Many thanks for your help! Can you recommend a tax accountant / organization that might be able to help me with this? Cheers

Many thanks for your help! Can you recommend a tax accountant / organization that might be able to help me with this? Cheers

I've pm'd you with a recommendation.