Hello
Maybe someone can give some advice...
I have been working at my job for four years in total doing Marketing Communications for a software company. My company in Massachusetts (will call it Company, Inc.) has another branch here in Hemel Hempstead (Company, Ltd.)
In May of last year they asked me to come out here to learn European marketing. My salary in the US was cut in half, and my employer pays expenses for me here (£1000 a month as per diem - not taxed) and my rent (£625 a month).
My work permit shows me as working for Company, Ltd. Thats who pays my per diem. But Company, Inc. pays my payroll into my US account.
My boss says just to file my US income, that the UK is not relevant because its expenses and is well below the limit for standard per diems ...of course now this has me barking at him for more money, but hey...
From what I am reading though - it doesnt seem right to just file the return in the US and tell them I took a salary cut in order to get the experience of life in another country and am training for global marketing which I will do with an increased US salary when i go back to the states when my work permit ends in May 2005.
Does this seem fishy? What am I supposed to do? Do I need to claim the money I make as per diem or rent here?
Thanks for ANY help!!!
