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TaxRobin
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Experience:  International tax
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I work US based company from UK. Do I have to be self

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I work for a US based company from UK. Do I have to be self employed or a self assement each year is ok? Also, if I will go for studies can I have the fees of this as a tax return?
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
Hello and thank you for allowing me to assist you.
If a U.S. company with no U.K. presence (entity, representative office or branch), hires a U.K. local as their first U.K. based employee, working from home, there is no "taxable presence" (i.e. no business address of the company) in the U.K. and therefore the U.S. company will typically not need to operate PAYE withholding.
Instead, the individual will be required to operate a "self administered" PAYE arrangement, known as a "Direct Collection" payroll to settle U.K. income tax and Employee National Insurance (NI) Contributions (although Employer National Insurance Contributions are not due). In practice, most U.S. employers will not want to burden an employee with this administration and will instead use a U.K. based agent to operate a standard PAYE withholding scheme, even if this is not strictly necessary.
Under the same facts as above, but there is a "U.K. office address" of the U.S. company, U.K. PAYE is required and must be administered by the U.S. parent company.
If you are a US person and the company has sent you to the UK a "taxable presence" exists and PAYE withholding will be due and must be administered by the U.S. company - even if the you continue to be paid through the U.S. payroll. NI Contributions can be avoided by obtaining a Certificate of Coverage from the U.S. Social Security Administration, provided you do not intend to remain in the U.K. for more than 5 years.
It really depends on if you were sent to the UK or you were already in the UK.
Customer: replied 1 year ago.

Thanks a lot for the answer.

I do not understand what I have to do. The company is in US. No entity or agent in UK. Just one EU person in UK. This person who works for the US company has to be self employed? or just self assesment? if all of this, will be entitled to get tax allowance from future studies fees?

Expert:  TaxRobin replied 1 year ago.
Self assessment.If your studies are building on an existing skill, rather than providing you with the ability to attract new clients with a new skill, then its an allowable expense.
Customer: replied 1 year ago.

Thanks a lot for your answer.!

and this EU person who lives in UK and works remote for this US company when should have to do the self assessment for the year of Oct 2014 to today?

Thanks

Expert:  TaxRobin replied 1 year ago.
The last tax year started on 6 April 2014 and ended on 5 April 2015. This would include the earnings from Oct 2014 to April 5th, 2015. You should register for Self Assessment by 5 October 2015. The date to file depends on if you file a paper return or online. Midnight 31 October 2015 if you file by paper and Midnight 31 January 2016 if you file online.
Customer: replied 1 year ago.

and with self assessment I will pay taxes as well as my insurance? it's similar with the taxes and insurance that I have been paid if I was self employed, right?

Actually is the same but no need to be self employed, just self assement each year for taxes and insurance.

Thanks

Expert:  TaxRobin replied 1 year ago.
Yes you will be assessed the tax when you file.You are most welcome.My goal is to give you excellent service.Your positive rating is thanks enough
Customer: replied 1 year ago.

Last question.!

Why not self employed and just self assessment? because the money are not coming from a client in UK? or what?

Expert:  TaxRobin replied 1 year ago.
You stated you are an employee. The US company is really supposed to set up withholding. If you are not an employee then you can just claim self employed.
Customer: replied 1 year ago.

The US company is not doing any kind of withholding.

Expert:  TaxRobin replied 1 year ago.
I suspected they had not, that is why I advised about the differences when a US company has an employee in the UK.You stated you were an employee. If you are self employed and not an actual employee then you can file as self employed.
Customer: replied 1 year ago.

I am trying to avoid all this with self employed.

In this situation, can I do only self assessment instead of being self employed.?

Expert:  TaxRobin replied 1 year ago.
A person is self-employed if they run their business for themselves and take responsibility for its success or failure.An employee is someone that works under an employment contract. You stated you were an employee. You must determine your true relationship. I answered based on employee status.If you are self employed then yes, file that way.
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Experience: International tax
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