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Working for a US firm in the UK


HEED

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So, meeting up with the VP next month to discuss things further, have touched base with HMRC and they have informed me that tax & NI needs to be paid by the direct payment scheme if the have no base in the UK. Anybody able to shed light on this for me?

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It sounds like they want to avoid any administration or responsibility. If you are based here and a salaried employee, not a contractor, you and they are liable for tax and NI. Either you'll  need to do the admin of that or they'll  need to get an accountant or the like to do it.

I wouldn't  touch it with a barge pole.

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7 minutes ago, Sergeant Wilson said:

It sounds like they want to avoid any administration or responsibility. If you are based here and a salaried employee, not a contractor, you and they are liable for tax and NI. Either you'll  need to do the admin of that or they'll  need to get an accountant or the like to do it.

I wouldn't  touch it with a barge pole.

It shouldn't be that complicated for an American company to employ a single worker in the UK without setting up a local company and HR resources and infrastructures to deal with it.

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2 hours ago, HEED said:

So, meeting up with the VP next month to discuss things further, have touched base with HMRC and they have informed me that tax & NI needs to be paid by the direct payment scheme if the have no base in the UK. Anybody able to shed light on this for me?

I'm no tax expert but the direct payments scheme doesn't seem appropriate for you.  You can read about it here: https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye20100

I said when you first posted about this that, "They will need their own UK-registered company and will comply with appropriate employment laws and will tax you at source etc.  If they employ you on a contract basis then you need your own limited company." and nothing has changed.

@welshbairnis half-right when he says, "It shouldn't be that complicated for an American company to employ a single worker in the UK".  The concomitant is that they do have to set up "a local company and HR resources and infrastructures to deal with it.".  This, though, is simple.  There are a hunners of accountants who can readily set up a company, give you a contract of employment and put you through their books and keep you in step with tax, Employers NI, Employee NI plus the pension legislatiion.

In sum:

1.  Set up your own Ltd Company.  
2. Get them to establish a UK entity (via an accountant)

 

 

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16 hours ago, The_Kincardine said:

I'm no tax expert but the direct payments scheme doesn't seem appropriate for you.  You can read about it here: https://www.gov.uk/hmrc-internal-manuals/paye-manual/paye20100

I said when you first posted about this that, "They will need their own UK-registered company and will comply with appropriate employment laws and will tax you at source etc.  If they employ you on a contract basis then you need your own limited company." and nothing has changed.

@welshbairnis half-right when he says, "It shouldn't be that complicated for an American company to employ a single worker in the UK".  The concomitant is that they do have to set up "a local company and HR resources and infrastructures to deal with it.".  This, though, is simple.  There are a hunners of accountants who can readily set up a company, give you a contract of employment and put you through their books and keep you in step with tax, Employers NI, Employee NI plus the pension legislatiion.

In sum:

1.  Set up your own Ltd Company.  
2. Get them to establish a UK entity (via an accountant)

 

 

I've nothing to add to this, apart from congratulating Kinc on furthering the use of our word in the day to day lexicon.

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