Hello
Guest

Sponsored Links


Topic: Tax questions  (Read 488 times)

0 Members and 1 Guest are viewing this topic.

  • *
  • Posts: 13

  • Liked: 1
  • Joined: Apr 2018
Tax questions
« on: April 11, 2018, 02:41:26 PM »
We have the opportunity to relocate to the UK under a work visa with my current company and need to make the decision to make the move and have some tax questions / concerns.  My boss would like an answer ASAP and the UK HR folks aren't too responsive...

Our work situation is that I'm employed and my husband is self employed, working really with one US client.  My salary alone is in the 40% UK bracket and my husband's -- based upon US deductions -- rides the line between the lower UK band and the 40% UK band.  Together our income would still be in the 40% band. 

If we make this move, and my husband continues to work solely as a US LLC (we are able to maintain a US address through relatives) working only for US clients, would he only owe US taxes or would the Queen expect a share as well? 

I'm trying to take this year's gross incomes and probabilities for deductions (based on living there, so no mortgage interest, etc) and try and get an idea of what our tax burden would look like over there. 

Thanks for any insight!


  • *
  • Posts: 154

  • Liked: 21
  • Joined: Aug 2013
Re: Tax questions
« Reply #1 on: April 11, 2018, 04:34:04 PM »
The key aspect is that if you (and your husband) are UK resident, then you are taxable in the UK. There are detailed rules for determining when your period of residence in the UK would be considered to start.

Under UK tax rules, husbands and wives are taxed independently. (Income from jointly held assets is divided equally.)

As an employee, you would be liable to UK income tax and National Insurance on your salary and benefits. These would be deducted at source by your UK employer. As you are moving with your present employer, there are special rules on National Insurance. You may wish to check whether your HR department is familiar with them.

Your husband should take advice about his business vehicle. He would be taxed in a straightforward way if he was a sole trader. Under UK tax rules, an US LLC is considered to be tax opaque, in other words taxed as a company. This gives rise to complications and unnecessarily onerous tax.


  • *
  • Posts: 2603

  • Liked: 102
  • Joined: Dec 2005
Re: Tax questions
« Reply #2 on: April 11, 2018, 06:49:34 PM »
As your husband is engaged mainly by one business it would be prudent for the engager of his work to take advice on their obligations from having a UK based worker. He may ask them to share this advice with him.


Sponsored Links