Hello
Guest

Sponsored Links


Topic: Taxes while working out of country without permit  (Read 982 times)

0 Members and 1 Guest are viewing this topic.

  • *
  • Posts: 48

  • Liked: 0
  • Joined: Mar 2006
Taxes while working out of country without permit
« on: December 19, 2008, 12:52:48 PM »

I'm curious what the appropriate rules are suppose to be for taxes in my situation.

I work in IT, and have been working for a company in the UK on a 6-month BUNAC scheme permit.  I have my pay deposited into my UK bank account, and I'm taxed at the Basic Rate.

My current permit expires at the end of December, and I will return to the US and work remotely for the company while I apply for a Tier 1 Visa.

Even if everything goes smoothly, I will be in the US for 2 months, working for the UK company without a valid UK work permit.

If the company continues to pay my salary to my UK account, should I be assessed UK tax at this time? 

Should I encourage the company to make deposits to my US bank account instead?

Are there any special considerations for people in this situation that aren't apparently obvious?

Thanks,
Duane


  • *
  • Posts: 2631

  • Liked: 105
  • Joined: Dec 2005
Re: Taxes while working out of country without permit
« Reply #1 on: December 20, 2008, 09:26:43 AM »
If you are American you are subject to worldwide US tax by the US, subject to credit for UK tax or the foreign earned income exclusion if you qualify.

You may also be subject to State income tax.

The UK will tax you on income related to UK workdays only if you are non-UK resident or you are not ordinarily resident & do not remit the non-UK income to the UK & you claim the remittance basis on a UK return.

If you are UK resident & do not claim the remittance basis you will pay UK tax on worldwide income for the entire year; unless you are non-UK domiciled & non-UK (non remitted) income is less than £2,000, in which case it does not have to be reported in the UK.


Sponsored Links