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Topic: Working Remotely For US Company as Sole Trader  (Read 227 times)

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Working Remotely For US Company as Sole Trader
« on: January 02, 2018, 04:03:58 AM »
Hey guys! I've read through most of the more recent posts that people has created about working remotely for a US based company. My current company has offered to allow me to continue to work for them (everything that I do can be done 100% remotely) once I move and while we have several international employees, there is no UK office or anything set up in the UK.

I see that the best way to go about this is to get myself set up as a sole trader and treat this as contract work. I'm curious if anyone has actually done this or this has just been discussed on the boards. And if I were to be successful with this, how long does it take to get set up as a sole trader and get a national insurance number, etc. Thank you!
Type of Application: Settlement Spouse Visa (non priority)
Met Husband: 10 September 2015
Got married: 13 October 2017
Online application: 26 Nov 2017
Biometrics: 29 Nov 2017
Application mailed: 29 November 2017
Application received in Sheffield: 1 December 2017
Application received email: Never
Application not straightforward and
request for more documents: 19 Feb 2018
Decision email received: 8 March 2018 (68 BD)
Passport received: 12 March 2018 - APPROVED!


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Re: Working Remotely For US Company as Sole Trader
« Reply #1 on: January 04, 2018, 01:19:15 PM »
I am commenting to see any replies. I am in the same boat and being offered to be 1099 contract employee. I am concerned because from what I have read I would be taxed from the US around 25% (or more) then by Scotland (where we are moving) a 40% tax as I would make more than 43k in pounds.


Look forward to hearing others experience with this.
Applied online:21 April 2018
Bio-metrics and Docs mailed: 01 May 2018
Arrived in Sheffield (via UPS): 08 May 2018
Email confirmation from Sheffield: 08 May 2018
Decision made:
Docs returned:
Decision:


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Re: Working Remotely For US Company as Sole Trader
« Reply #2 on: January 06, 2018, 08:49:00 AM »
You will need to register for Self Assessment as a sole trader in the UK. The UK gets the first cut. If your earnings are £43K, you deduct the tax-free allowance, and pay tax on the balance, so you would normally be in the 20% bracket, not the 40%. You will also pay NI contributions in the UK. And yes, you need to get a National Insurance number ASAP.

You do NOT pay self-employment tax in the US. You WILL need to file a tax return, but either take the FEIC to exclude your income or the FTC to use UK tax paid to offset US tax due.

That's the short & simple stuff. Others will come along and provide more specifics.


You need to do a bit of reading
Married December 1992 (my 'old flame' whom I first met in the mid-70s)
1st move to UK - 1993 (Letter of Consent granted at British Embassy in Washington DC)
ILR - 1994 (1 year later - no fee way back then!)
Back to US in 2000
Returned to UK July 2011 (Spousal Visa/KOL endorsement)
ILR - September 2011
Application for naturalization submitted July 2014
Approval received 15-10-14; ceremony scheduled for 10 November!
Passport arrived 25 November 2014. Finally done!


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Re: Working Remotely For US Company as Sole Trader
« Reply #3 on: January 06, 2018, 08:43:57 PM »
Thank you so much, Vadio! I'm not in the UK yet, just trying to get all my ducks in a row before I get there and this was very helpful.
Type of Application: Settlement Spouse Visa (non priority)
Met Husband: 10 September 2015
Got married: 13 October 2017
Online application: 26 Nov 2017
Biometrics: 29 Nov 2017
Application mailed: 29 November 2017
Application received in Sheffield: 1 December 2017
Application received email: Never
Application not straightforward and
request for more documents: 19 Feb 2018
Decision email received: 8 March 2018 (68 BD)
Passport received: 12 March 2018 - APPROVED!


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