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Topic: US Employer, UK resident  (Read 1238 times)

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US Employer, UK resident
« on: June 01, 2010, 09:08:45 PM »
Hello there.  I've been looking through the site and have learned a lot from people in similar situations to mine but would appreciate some more specific advice.

I have ILR but had to return to the US for a few months.  I now want to go back to the UK to apply for citizenship.  The (potential) glitch: I now have a US employer.  I can do the work remotely, so relocation is not a problem.  My worry is about how to deal with US/UK taxes and avoid double taxation.

I understand that since I will be considered a UK resident for tax purposes, all my income must be declared in the UK and is liable for UK taxes.  I also understand that I will be eligible for a "foreign tax credit" in the US for any taxes paid in the UK.  But here's my question: what do I do about the US taxes my US employer withholds automatically from my paycheck?  I don't want to submit form 673 to my employer since I am not certain I will be away for a full year.  In short, how do I meet my UK tax obligation without causing confusion and apprehension with my current US employer?

Thank you for any insights and help.


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Re: US Employer, UK resident
« Reply #1 on: June 28, 2010, 06:22:37 PM »


The suggested solution here is one of employment law and permanent establishment for the employer so is not straightforward.  The questioner should take advice from someone specialised in this area.
« Last Edit: July 05, 2010, 07:24:34 PM by Ashley »


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Re: US Employer, UK resident
« Reply #2 on: July 05, 2010, 07:24:49 PM »
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