Monday, August 10, 2015

US citizen living in the UK (on a spouse visa) for a US company

Below are some links and information on how a US citizen can live in the UK on a spouse visa AND work for a US company.

US Tax Guide for Americans Living in the UK
Foreign Earned Income and Housing: Exclusion – Deduction (IRS Document)
US citizen living in UK, working for US company - forum discussion on the issue that seems to conclude that a US citizen can live in the UK on a spousal visa and work for a US company. It appears the best choice is to have a US company to UK company (customer/vendor) relationship, but it is not clear if this is required. The setting up of a UK company is roughly the same process (and similar structures) as setting up a company in the US. The US / UK tax treaty says that you would need to opt out of US Social Security in the US, even if you are already paying NI – this is not automatic. To opt out you would need to visit the Social Security website at www.ssa.gov. It is not clear if it is acceptable to be in a relationship (1099) that is between you (in the UK) and US company though. This would be easier. It doesn't appear that a W2 relationship is allowed, but it may be.
Tax Advisor for Information Technology Consultants
Immigration Rules