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Financial Requirement if I work for US based Co. but pay UK taxes

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TA-DMP
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Financial Requirement if I work for US based Co. but pay UK taxes

Post by TA-DMP » Tue Feb 16, 2021 12:17 pm

Hello,

I'm a spouse of a British citizen. Due to covid19, my job as a software engineer allows me to work for any company while still residing in the UK and pay UK taxes. That begs the question if it's even possible from the FLRM visa point of view, is it possible to meet the financial requirement if I worked for a US-based company (or any foreign company) but I'll still be residing in the UK and pay UK taxes? It's a fully remote job. Or do I need to work for a company registered in the UK? I want to make sure before accepting any offers.

Is there a way to still do that and meet the financial req any other way? Also, US companies that hire foreign employees to work remotely will have a different level of support, if they have a financial manager based in the UK, no issue, but for some, they will offer based on a freelance basis (even though it's technically full-time and monthly income is guaranteed). Is there any legality that I might've missed?

Ps. I am not American, so don't need to worry about double taxation by IRS.

Thank you for your help

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Zerubbabel
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Re: Financial Requirement if I work for US based Co. but pay UK taxes

Post by Zerubbabel » Tue Feb 16, 2021 4:22 pm

Hello

Yes, it's 100% legit as long as things are done correctly.

Option 1:
The company has a subsidiary in the UK and will pay you through PAYE. In that case, we don't care the company is US. You are paid by a British entity and taxes are automatically sorted. You get nice payslips and happy days. I have been on that situation for years. No issues.

Option 2:
The company has no one in the UK. In that case, you setup yourself as an LTD or find any suitable legal entity (could be an umbrella company?) and the money goes there. Your employer sends the money there. Your accountant sorts out the taxes and that's it.

Option 1 is much better. Option 2 is viable too but requires you to show accounts and much more paperwork but it works fine as long as you have a regular income coming through.

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