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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16308
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am currently residing and working in the UK. I moved to

Customer Question

My name is***** and I am currently residing and working in the UK. I moved to the UK 4 and a half years ago and have been living here ever since. I will be moving to the US for the next 2 years to study, but wish to continue working in my current UK role remotely. I've been doing some research about my situation, and have the following questions questions: Would I be able to maintain my UK residency and become a dual resident (UK & US)? This, assuming that I spend 30 consecutive days in the UK and have a home in the UK for at least 91 days (while not having a home elsewhere). Information for this assumption was found here. Would I be able to continue working (remotely) for my current UK employer? would I then need to pay taxes on my UK income in both countries?
JA: Which tax year is this for?
Customer: this one
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: no
Submitted: 17 days ago.
Category: Tax
Expert:  Virtual-mod replied 16 days ago.
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Expert:  Sam replied 16 days ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 16 days ago.

Hi

No you will be treated as not resident in the Uk as soon as you depart to go to the USA where you will then be treated as resident there

Yes you can work remotely for the UK employer (If they are agreeable as they will be subject to USA taxes on your behalf) and you can either stay paying UK taxes from which this tax will be offset against the USA tax that will arise as you will be liable to tax in the USA OR apply for a No tax (NT) Tax code by completing form P85 and pay all the tax in the USA

Either way you ned to complete a self assessment tax return each year due to your non residency

Thanks

Sam

Customer: replied 16 days ago.
Hi Sam.
Thanks for your reply! Just wanted to confirm that I can't be considered a resident in the UK, as I found the following: https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3 - in the 2.3 Third automatic overseas test section. And what would be the minimum amount of time I would need to stay in the UK to be considered a resident?
Customer: replied 16 days ago.
who will be responsible for paying the US taxes, will it be me? or my employer?
Expert:  Sam replied 16 days ago.

Hi

That doesn't apply to you as you are not a UK citizen that's for British people

Your employer will pay with holding taxes to the USA IRS and you will pay USA taxes on your income as a resident soo if you spend more than 90 days in the USA you will be treated as resident there anyway

Here is the same - more than 90 days

Thanks

sam

Sam

Customer: replied 16 days ago.
Makes sense, thanks for clarifying that. Other than notifying my employer and asking them if they'd be okay with me continuing working for them under these new circumstances, is there anything else I need to do at this point? (I'll be moving to the US in August 2021) Any forms I need to fill and submit? Or is it just reaching an agreement with my employer and paying taxes in the US when they're due?
Expert:  Sam replied 16 days ago.

Hi

No if your employer is agreeable and have all the USA requirements in place then you just need to complete form P85 when you leave the UK - link here https://www.gov.uk/government/publications/income-tax-leaving-the-uk-getting-your-tax-right-p85

Then register with the IRS in The USA once you arrive there

Thanks

Sam

Customer: replied 16 days ago.
What USA requirements does my employer need to have for this?
Expert:  Sam replied 15 days ago.

Hi

I am a UK tax expert not USA you will need to liaise with the USA IRS

Thanks

Sam