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Topic: Options for UK sponsor with a US-based employer, income in USD  (Read 3219 times)

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Options for UK sponsor with a US-based employer, income in USD
« on: January 15, 2019, 07:03:04 PM »
Hi there, wondering if anyone can give advice on my situation.

I am a UK citizen currently living and working full-time in the US for a US-based company. I work remotely, and my employer has said they would be fine with me working from anywhere - including the UK.

I am also earning the threshold required to sponsor my American wife for a UK spouse visa, albeit in USD rather than GBP.

We're trying to work how I can keep my current job while sponsoring my wife for her visa if/when we decide to move back to the UK. As I understand it, the UK government requires that your employer be based in the UK (which seems a very archaic approach but that's a complaint for another time).

The only option I can think of is registering a company in the UK, and then having my US employer pay my salary to that entity. Then after 6 months, putting in the visa application based on this income.

Anyone suggestions from anyone with experience in this area would be most welcome!

Thanks





 



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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #1 on: January 15, 2019, 07:07:45 PM »
If you were going to do that, sounds like you'd be self employed and that requires a full year of documentation.

Do you have savings of £62,500? This can come from the sale of a house.


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #2 on: January 15, 2019, 07:19:23 PM »
Thanks for the reply - I should have said the savings route is not an option for us.

I guess the real question is which category I would fall under - self-employed? Or an employee (albeit of the company that I registered)?


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #3 on: January 15, 2019, 07:22:01 PM »
Thanks for the reply - I should have said the savings route is not an option for us.

I guess the real question is which category I would fall under - self-employed? Or an employee (albeit of the company that I registered)?

Is there any chance that you could get a job in the UK meeting the requirements? You can apply with your previous earnings and a job offer starting within 3 months.


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #4 on: January 15, 2019, 07:22:10 PM »
If you were going to do that, sounds like you'd be self employed and that requires a full year of documentation.

Yeah, unfortunately, if you did that, you would not be able to apply for the visa until after you had completed an entire full tax year of self-employment in the UK and had filed all your paperwork with HMRC for that tax year.

So, you’d be looking at not being able to qualify for the visa until 2020 at the earliest.



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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #5 on: January 15, 2019, 07:48:42 PM »
Is there any chance that you could get a job in the UK meeting the requirements? You can apply with your previous earnings and a job offer starting within 3 months.

Unfortunately, that would mean giving up my decently-paying job that has really good progression opportunities and that I enjoy immensely - which is what I am trying to avoid.



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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #6 on: January 15, 2019, 07:50:06 PM »
Unfortunately, that would mean giving up my decently-paying job that has really good progression opportunities and that I enjoy immensely - which is what I am trying to avoid.

And presumably that company does not have a UK presence?


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #7 on: January 15, 2019, 08:02:37 PM »

[/quote]
And presumably that company does not have a UK presence?

Correct - they have no UK presence, and no plans to establish one.

One of the directors did offhandedly say they could look into setting one up specifically so I could move back and stay employed by them, but I assume that would expose them to all kinds of red tape and tax liabilities in the UK.


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #8 on: January 16, 2019, 09:21:57 AM »
Unfortunately this will likely be a lot more complicated than either you or your employer anticipate.

To remain employed by your US employer, they will need to consult a good attorney who can issue you with a UK employment contract meeting UK employment laws which are quite different to USA employment laws. 

Otherwise, you'll need to set yourself up as a company and issue your USA employer with invoices for your services.  This will mean you are treated as self-employed and will need a full year of accounts before you can sponsor your wife's visa.

I'm sorry that it isn't better news.  Is a move to the UK really the right thing for you?  If you are happy in your job, why leave?   :)


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #9 on: January 17, 2019, 02:47:04 PM »
I was in exactly your situation in that I lived and worked in the USA for ten years and then wanted to move back to the UK with my American wife. I wanted to keep my US based job. My company had no UK presence and I was earning my pay is USD in the states.

In the end it was all very simple. I found an international payroll company called Fully Managed Payroll or FMP for short and they set me up as a UK based employee of a US company. US companies don't need to have a "UK presence" or even a UK bank account. Each month the payroll company bills my company for my salary and their fee, I then get paid in GBP to my UK account with all the necessary taxes deducted. They take care of all the P60s and other tax stuff also. I've been doing it that way for five years now and I have filed all my wife's visas using the UK pay slips I get. Never had a problem. Never needed a lawyer. All very simple. Much easier than all this visa business.

Hope this helps


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #10 on: January 17, 2019, 05:31:49 PM »
I was in exactly your situation in that I lived and worked in the USA for ten years and then wanted to move back to the UK with my American wife. I wanted to keep my US based job. My company had no UK presence and I was earning my pay is USD in the states.

In the end it was all very simple. I found an international payroll company called Fully Managed Payroll or FMP for short and they set me up as a UK based employee of a US company. US companies don't need to have a "UK presence" or even a UK bank account. Each month the payroll company bills my company for my salary and their fee, I then get paid in GBP to my UK account with all the necessary taxes deducted. They take care of all the P60s and other tax stuff also. I've been doing it that way for five years now and I have filed all my wife's visas using the UK pay slips I get. Never had a problem. Never needed a lawyer. All very simple. Much easier than all this visa business.

Hope this helps
I wish I had known this last year! I may need to job hunt back in the states so knowing a company like FMP exists is helpful.

How did you manage the employment contract piece of it for the visa?

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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #11 on: January 17, 2019, 05:40:58 PM »
FMP can create a UK employment contract on behalf of the USA company but they charge an extra fee for that. I don't actually have an employment contract I don't think in the UK. I have always just submitted six months of pay slips and UK bank statements along with a cover letter from my boss stating that I work there etc and what my pay is etc.


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #12 on: January 17, 2019, 07:28:51 PM »
I was in exactly your situation in that I lived and worked in the USA for ten years and then wanted to move back to the UK with my American wife. I wanted to keep my US based job. My company had no UK presence and I was earning my pay is USD in the states.

In the end it was all very simple. I found an international payroll company called Fully Managed Payroll or FMP for short and they set me up as a UK based employee of a US company. US companies don't need to have a "UK presence" or even a UK bank account. Each month the payroll company bills my company for my salary and their fee, I then get paid in GBP to my UK account with all the necessary taxes deducted. They take care of all the P60s and other tax stuff also. I've been doing it that way for five years now and I have filed all my wife's visas using the UK pay slips I get. Never had a problem. Never needed a lawyer. All very simple. Much easier than all this visa business.

Hope this helps

FMP can create a UK employment contract on behalf of the USA company but they charge an extra fee for that. I don't actually have an employment contract I don't think in the UK. I have always just submitted six months of pay slips and UK bank statements along with a cover letter from my boss stating that I work there etc and what my pay is etc.

It's strange because this subject comes up frequently and I don't think anyone has ever suggested this before. Is this system compliant with UK labour law? Thinking it looks too good to be true!   :)


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #13 on: January 17, 2019, 10:45:58 PM »
I do seem to recall something about problems with it in the dim and distant past but that was over using them for Tier 2 sponsorship, not situations where a COS wouldn't apply. Otherwise as far as I know, employment with an umbrella company is the same as any other employment in a practical sense -- my husband's used one off and on for years when he wants to contract himself out.


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Re: Options for UK sponsor with a US-based employer, income in USD
« Reply #14 on: January 17, 2019, 11:56:10 PM »
I've been working this way for the past five years. I file taxes every year with HMRC and I have applied for all my wife's visas using pay slips issued by FMP. Never had a problem or even a question about it.


My company is putting money into a UK pension via the auto enrollment scheme all setup by FMP.  I get all the end of year tax documents anyone else would get in the UK. Pretty sure it is as legit as can be.


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