Working for a US company

[rk79]

Hi Guys,

Need some help. I have been approached by a company that is incorporated in the US and I am really excited with the opportunity that they have offered. Unfortuntaly, they are not interested in opening a UK office but would like me to work for them from London. I have an HSMP which is valid until Mar 09...how can I proceed with this? To be specific -

How should we draft the terms of employment (any template welcome...)

How can they make payments to my UK bank account...salary

[republique]

Incorporate as a ltd company. Bill them

[rk79]

Thanks a ton! any guidence on how can I incorporate a company in the UK

[GIMS]

You can start by googling how to setup a company as a self-employed person.
You will need to have an extra person as a director (in name only generally).
You may also need to open a business bank account.
So in short you will receive the money in your account as a company and pay tax yourself and pay yourself a salary or dividends.
Just have a read on the internet first.
Its what most people do when you work as an IT contractor and dont want to be paid through an umbrella company.

[republique]

You can start by googling how to setup a company as a self-employed person.
You will need to have an extra person as a director (in name only generally).
You may also need to open a business bank account.
So in short you will receive the money in your account as a company and pay tax yourself and pay yourself a salary or dividends.
Just have a read on the internet first.
Its what most people do when you work as an IT contractor and dont want to be paid through an umbrella company.

Or use an umbrella company
it will save you lots of headaches

[GIMS]

I agree with republique. Use an umbrella company. Setting up your own company is a big project if you havent seen it before.

But please make sure the company is fully legitimate and has a good track record in these kind of arrangements. With renewal in less than a year you cant afford any hickups.

[rk79]

Thanks for your help thus far. I met with a few people/consultant who can help me set this up but when I calculated the tax liability (please remember a corporation tax of 19%) it was a really unattractive option...any comments.!?

My understanding was that the limited copmany would help me save some tax.

Finally, what are the pros and cons of working as a self employed person in this scenario (except job secruity...which we all know about

Thanks again for your help