Brit working for US company in UK

Hi, I'm currently living in the US and working for a US company that wants to send me to the UK to work remotely for them. They'll have no office in the UK so I'm not sure where to start regarding how I pay my taxes etc. Can anyone send me in the right direction?

Thanks

Hi. Please read the text at the link below and then give us more data about your posting, in particular: duration, whose payroll you'll be on; status in the USA (green card?); contractual duties... and then if you want to, one can consider pre-arrival planning, pensions, social security, benefits, expenses, houses and gains tax; tax planning while you're in the UK; and tax reduction steps before you go back to the US.   
There's quite a bit to do, all good, cross border work always gives more chance to reduce tax.
http://www.hmrc.gov.uk/manuals/eimanual/eim77010.htm

It appears that you are currently working in the US and likely to return to the UK.

Assumng you are currently not UK resident, once you are back here the UK will start taxing you on worldwide income and gains.

You may find that you create a permanent establishmen of the US entity requiring UK corporation tax to be paid. Your employment would in any case become subject to English or Scottish employment law so your employer would need UK based legal and tax advice before employing you in the UK.

Ok, I'm British, married to an American and currently on a green card in the US. I work for a US company that is expanding to Europe. They want me to manage the European stuff from London. They'll be paying me from the US as they have no office or subsidiary in the UK. I'll be their only oversees worker.

Thanks

Ok, I'm British, married to an American and currently on a green card in the US. I work for a US company that is expanding to Europe. They want me to manage the European stuff from London. They'll be paying me from the US as they have no office or subsidiary in the UK. I'll be their only oversees worker.

Thanks

Why is this your problem? If your company is expanding into the UK their HR, legal and payroll departments should be working on complying with any UK requirements. For you specifically they should be working out PAYE, NIC and US tax and SS issues as well as complying with UK corporate and employment regulations. They are already taking advantage of your citizenship to get around the work visa issues.

FYI the simplest thing for your company would probably be to employ you as a contractor. If that was the case you'd bill your current company for your work and have to deal with UK PAYE, NIC etc as a self employed person. Whether this is the best for you I don't know. But if you stay employed by the US company they need to be dealing with the tax and other issues of having an employee in the UK.

If you are a US permanent resident will you be able to get US citizenship before returning to the UK? If not, and you wish to return to the US in the future, make sure you apply for re-entry (not sure of the actual form ref.), or you may have to start the US immigration process all over again.

I think the question is "where to start".
1. Start with 'get a cross border tax adviser' (like me and others on this forum) and I apologise if you think that I'm not telling you about something simple enough that you could do yourself. I'm not. However, if you absolutely must do it yourself:-

2. Analyse the tax position in the UK and US if you ask for a secondment, as per the link I gave you.
3. Add in whether they'll support travel expenses, housing, set up costs, and the taxation on that
4. Add in the loss/gain of social security benefits.
5. Add in the change of cost of living, schooling, housing.
6. Consider tax on housing (gains)
7. Consider any loss / gain of pension/401k/stock option benefits

8. Repeat above for (b) if you ask them to start an office; for (c) if you contract as a self employed person, for (d) if you contract as a company.

The best position for you might be initially a secondment with travel and subsistence expenses, housing supplied, travel costs for family, education costs and anything else you can get on pension and stock options. After two years, you'll have to reconsider anyway.

Commonly, advisers like me talk it over with the company HR team to see what's best for both sides.

I concur. Get a dually qualified US and UK tax adviser (ie someone qualified in both countries) and get the company to pay. There are numerous corporate issues and both the company and you need a dually qualified adviser to assist each of you.

Thanks for all your help! I'll advise my company to seek professional advice. One more question. If I'll be paying UK taxes will I be able to claim all holiday entitlement in the UK? It's far less in the US. Or is it company decision? Thanks

Thanks for all your help! I'll advise my company to seek professional advice. One more question. If I'll be paying UK taxes will I be able to claim all holiday entitlement in the UK? It's far less in the US. Or is it company decision? Thanks

FYI

http://www.direct.gov.uk/en/Employment/Employees/Timeoffandholidays/DG_10029788

My company are happy to use a tax company to file my all my taxes etc.

As I understand it they need to

set up a payroll scheme with HMRC for a UK resident working for a non-UK employer
- raise monthly payslips calculating the deduction of employee tax and National Insurance (no employer tax or social security payments are applicable as this is a non-resident employer)
- complete the annual payroll reporting to HMRC, providing an annual statement(P60) to the employee

Does anyone know roughly how much this should cost? I've had a couple of quotes but I still want to ask around for the best deal.

Thanks