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Topic: US independent contractor invoices UK firm  (Read 1037 times)

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US independent contractor invoices UK firm
« on: December 15, 2014, 02:52:36 PM »
Hello,
I am a US independent contractor and I will be doing a 1 month research project for a UK based company. I will performing all of the work in the USA. I plan on invoicing the UK company a gross amount. I will pay taxes in USA for this. Does the UK company need to hold back V.A.T? Also, does it matter whether I invoice them in GPB or USD?

Thanks for your help!!!!


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Re: US independent contractor invoices UK firm
« Reply #1 on: December 15, 2014, 04:36:40 PM »
You are not VAT registered. If you were, YOU would invoice with VAT included, and YOU would be responsible for filing a VAT return and paying VAT.

I would invoice n US$ and ask that you be paid in US$ - a bank transfer (among other options) can be initiated in the UK to pay a specified amount in your currency of choice. That avoids any Fx calculations when you file your US return.
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Re: US independent contractor invoices UK firm
« Reply #2 on: January 12, 2015, 03:47:06 AM »
I can confirm what earlier post had to say, plus watch your bank statement when you are paid. I work with US contractors and am given the option of charging either our UK company, or the contractor, for the US$25 wire charge. If your account is charged for it, write it off as an expense.


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