Thanks for the response ... it is project management, marketing program execution that sort of thing ... basically marketing program execution.
I am getting there but still confused ... so because the service is being delivered in the US my UK company needs to withhold tax from the contractors and then pay that to the IRS ... can't I just have them do it themselves as they are not employees just contractors providing a service ? If they had their own US company I could transact with them and it would be their company that would then be responsible for ensuring the IRS get their money ?
Thanks I have read this and the US - UK tax treaty and am none the wiser ... it stats "In general, under the United States' tax treaties, aforeign corporation that earns income from services per-formed in the United States is generally subject to US taxon that income only if the foreign corporation has a "per-manent establishment" in the United States. Further, onlythe business profits attributable to the permanent estab-lishment (PE) are subject to US tax." as I don't have a PE in the US does this mean that I (my co. is not liable) and I can just tell them they are responsible for it. I would pay Corp Tax in the UK on any profit I make from them (the difference between what I am paid for their services and what I pay them) ... Sorry for all the points of clarification I am just trying to get clarity.
Great so to close this down (and pay you ) if I put a clause like the one in the original question in their contract this will suffice, they will be responsible for their taxation affairs and there is no liability on me (my co) ?