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Topic: Exploring options of working remotely in the UK  (Read 1004 times)

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Exploring options of working remotely in the UK
« on: June 03, 2015, 05:35:08 PM »
Any help would be greatly appreciated, as we're feeling very overwhelmed with the prospect of moving from the US.

Anyway, my wife has been offered a job in London and is seriously considering the move.  I would be able to come over on a tier 2 dependent visa.  I currently work for a US software company and it so happens that a majority of my clients are in the UK.  My company is open to me working remotely, but I'm curious if there is any financial impact to them?  Would I be subject to UK labor laws etc?  Initially, it seems a win for them, as my wife's company pays for all our relocation expenses.

My other question relates to taxes.  If they paid me in USD into my US bank account, would I be subject to UK taxes, just not sure how that works.


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Re: Exploring options of working remotely in the UK
« Reply #1 on: June 03, 2015, 08:21:33 PM »
You would have two options.  Your company can still employ you directly, but they would need to provide you with a UK contract.  You could still be paid in USD, through US payroll, into your US account.  But things like paternity leave, minimum of 28 days holiday a year, etc., would need to be in your UK contract to be legal.  Or you could be a self-employed contractor and bill them accordingly (hourly or day rate).

No matter what option you choose, you would pay UK taxes (it's where you are a resident, not where you are being paid from).  You would then file for a Foreign Earned Income Exclusion with the IRS to not be subject to double taxation.  UK taxes are higher than US taxes so that is something to consider when negotiating with your current employer.

Also keep in mind that if your wife is coming on a Tier 2 Intracompany transfer that the visa does NOT lead to settlement, meaning your move would be temporary.  It's just good to know going in.  Only Tier 2 General can lead to settlement.


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Re: Exploring options of working remotely in the UK
« Reply #2 on: June 05, 2015, 03:04:57 PM »
Thank you for your help.  To follow-up, I would think I would want to avoid the contract situation, as it seems to leave me unprotected.  Because my company has no UK offices, how would I go about getting a UK contract?  Additionally, since I need to pay UK taxes, would my company withhold from pay and pay for me, as they do within the US or would I have to take care of that locally in the UK?


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