Independent Contractor - UK

I wonder if anybody has any general advice on my potential situation.

I'm American, soon to be a Swedish citizen in spring of next year, after which Swedish husband and I are moving to the UK for a variety of reasons.

I currently work via the internet for a company in the US as an independent contractor, transcribing legal proceedings.  I get paid in dollars into a US account, which get changed to Swedish money and I pay one hell of an enormous tax to the Swedish government for the privilege of getting some spending money in return.

If I wish to continue doing transcription part-time once we establish residence in the UK, I want to do the right thing and declare my income (yes, I KNOW not everybody does, but it's contributions to my eventual pension and use of the social system here, folks).  Does anybody on this forum have a similar arrangement and, if so, how are you handling your registration as a business or sub-contractor and the tax situation.

Or does anybody know a good tax advisor in the UK?

You should seek UK tax advice from an IR35 specialist.  I'd start shilling my own services, but this is not an area I am competant to advise on.  IR35 is a law passed a few years ago to force employers treating employees as "subcontractors".  The law is brutal for those it catches, removing most of the tax benefits of being self-employed.  As with any tax law, there are lots of ways around it.  A UK tax accountant can also assist with setting up self-employment taxes.

If you do it on your own, which is very easy to do from the Inland Revenue website, you'll save a lot in accountant's fees, but you risk having everything you've done overturned upon an Inland Revenue investigation.  You could compromise (if fees are a problem) by doing it yourself and hiring an expert only for investigations.  However, investigation specialists tend to cost more than preventative care does. 

Good UK tax advisors on this issue:  James Reeves (www.jreeves.co.uk); Kevin Badcock (www.thetaxdepartment.co.uk)

Lastly, if you do set up as a sole proprietor, I highly recommend that you join the Federation of Small Businesses (FSB - www.fsb.org.uk).  They have a legal advice hotline that's free, plus free coverage for full investigations (as opposed to partial ones).  The price of your annual dues more than covers the free legal advice.

Again, thanks for the advice.  It sounds like more trouble than it's worth almost, even more than here in Sweden, where they take 2/3rds, and since I'm only making about $2,000 a month anyway, it comes down to not enough to support one's self on but to provide the little extras in life.

My wife is specialised in the radiological field and may secure employment in the UK in the near future.  I am a patent attorney with a sole US client, and my contract with the client to prepare US patent applications shall continue even after we locate.  In this event I would continue to be paid in US dollars by the US client.  Do I need to have a work permit to continue my activites in this circumstance?  What about taxation?

I can tell you, Stephen, I just found an invaluable book called "Living and Working in Britain" by David Hampshire that has an extremely detailed section on Finances and Working.  It's available in the States, I think Amazon has it for under $20 and it's been very, very helpful to me.  He doesn't go into anything about getting payment in dollars, but I'm going to be seeking out an accountant when I head off to the U.K. and I'll be glad to post more here when I get more information.

Steve,

If you are married to a work permit holder, your visa status is "derivative" and as long as you are still married and the work permit holder's status here is legitimate, you do not require a work permit as such in order to work legally in the UK. You do, however, require the requisite residence permit. Garry, on this site, is an immigration advisor and can give you qualified advice.

Michael

Thank you very much.  In fact, I ordered the "Living and Working in Britain" book online a several days ago.  I am glad to hear that it is so helpful.

Stephen

I'm looking at something very much in the same area as you, working for a court reporter in the States, paid in dollars to an account in the States.  Currently, I then draw it out with my bank card here in Sweden and then pay taxes on it, which are crippling, but I'm trying to be honest.