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AndrewH Junior Member Member # 7418	Posted January 08, 2004 09:14 PM I'm making my application for HSMP. Does the HSMP WP let you work for anyone in the UK? For instance, could I work for a US firm from the UK with the HSMP permit? Thanks in advance, this is a great resource. -Andrew
marka Member Member # 1907	Posted January 09, 2004 11:22 AM A US firm that operates in the UK will likely have a UK subsiduary that is wholy owned by the US parent. The UK subsiduary is proper UK firm that can employ locals as well as those with HSMP visas and even apply for work permits. They would be part of the PAYE system and issue payslips and P60s. The fact they are wholy owned by a foreign firm is immaterial. On other hand if they are US firm with no UK subsiduary then it might be more difficult. There is a special visa for people who come to the UK to start up a subsiduary (business??) and I would imagine you can't do it under HSMP. marka
AndrewH Junior Member Member # 7418	Posted January 09, 2004 02:32 PM Marka, thanks for the reply. What if the US firm has no UK subsidiary and doesn't wish to create one? They really just want me to be able to telecommute from the UK. Do you think HSMP would cover this?
Joseph01 Member Member # 7141	Posted January 09, 2004 06:36 PM AndrewH It the company doesn't want to set up a UK legal entity, then you can work for the US company as a consultant or freelancer. You may need to form your own legal entiry to do this; this would be allowed by HSMP. [This is not a company making products employing people--just basically a one man legal entity providing an efficient tax and liabilty structure]. You (or your company) would bill the US company and pay the tax and NI deposits yourself. If you take that route, you really need to get early on the advice of a good accountant or solicitor to make sure that your company is properly set up and the tax payments are properly paid (very important). Joseph
AndrewH Junior Member Member # 7418	Posted January 13, 2004 02:49 PM Thanks for the input. Here is the situation: My current employer (US) doesn't have a UK subsidiary nor do they wish to open one. I'll be accompanying my wife in the UK for 3 years while she is getting her PhD. My employer has agreed to allow me to telecommute for this time. I'd like to stay on payroll with my company so I don't loose my retirement plan and benefits (so I don't want to work as an independent contractor). I qualify for the HSMP, and right now that looks like the most flexible work permit option, but I don't know if it would apply in this case. What other permit would apply? Thanks for the help.
marka Member Member # 1907	Posted January 13, 2004 03:26 PM on HSMP you need to either be a permenent employee of something (the PAYE system) or have your own firm an be a contractor. In that case you would be responsible for paying all the tax yourself. There has been some discussion on this board on the legalities of being paid overseas while on long term assignment in the UK. I belive that case involved an indian firm that transfered employees from india, but continued to pay them in india while only paying a special UK allowance in the UK. I don't think the board reached a clear concencis on the legality of this. We are not immigration solicitors. I don't know how easy it would be to renew HSMP if you had no local earnings, you might need professional opinion on the matter. On the other hand if you wife will have a student visa you will have a dependent visa which allows work. (as far as I remember. Someone please correct me on this if I am wrong) You could work for an employer in the UK without any further paperwork. Working for a US employer and being paid in the US should still be possible, but you will need to pay tax in the UK and claim tax relief in the US. You won't be double taxed, but the US will take tax from your pay that you will have to get refunded and then pay in the UK as that is where you reside and they have first claim to you income. Also remember that as of this week the grace period has expired and both you and your wife will need entry clerance at a british embassy before you can enter the UK as you will be staying for more then 6 month. marka
AndrewH Junior Member Member # 7418	Posted January 13, 2004 03:41 PM Marka, thanks. So you think that there is no chance the HSMP would allow me to be paid by a US firm even if I paid UK taxes directly? I guess I am not sure if the problem is a tax issue or with the way the HSMP is setup and administered. It would be no problem to have my US employer deposit my salary in a UK bank account and I personaly pay UK taxes from that. The HSMP documentation that I've read looks like you are ok if you can show financial activity. I'm hesitant to rely solely on the spouse student visa in the event she needs to take a term off or something.
ajayxyz Member Member # 7225	Posted January 13, 2004 04:06 PM Andrew the best way for u is to apply for a dependent VISA as ur wife is going to study in UK for a course which lasts more than one year. And this dependen't VISA will give u work permit also without any limitations.
Joseph01 Member Member # 7141	Posted January 13, 2004 04:16 PM AndrewH, Your scenario shouldn't be a problem under HSMP but you and your company should definitely get professional accounting/tax advice! I think you should be able to to be paid by the US company in the way that you suggest. Your company would treat you as an employee in the US but you probably would be treated like a contractor here in the UK, because you would be paying tax deposits yourself. As long as you are paying the UK taxes and filing returns, HSMP will be OK. It may be possible you wouldn't have to pay National Insurance Tax because your company would continue to pay your FICA under the UK/US Social Security Totalization Agreement. But this is a grey area because your company will not be established in the UK and you might not be considered an employee by the UK authorities. Under the worst scenario, you may have to pay both FICA and National Insurance. HSMP seems to be your best option, because WP definitely needs an established UK legal entity. Joseph
AndrewH Junior Member Member # 7418	Posted January 13, 2004 04:30 PM Joseph, thanks. I was hoping that was possible. The tax issue is certainly complicated and I will definitely seek professional advice. In regards to National Insurance, I will continue to pay FICA and I will stay on my companies private health insurance which will cover me in the UK. Is there a way to opt out of the National insurance? You mentioned the UK/US Social Security Totalization Agreement. What is that and where might I find more info on it? Thanks again.