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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 32143
Experience:  International tax
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I have been offered a role by a US entity while I live and

Customer Question

I have been offered a role by a US entity while I live and work in the UK currently. I have been provided two options which are below. What are the tax implications of option 1?Option 1: $98,500/yr which equals around 80,000 GBP. if paid through the US Entity. Your contract will be through US Company in the USOption 2: 65,000GBP/year paid through the UK Entity.
JA: Have you talked to a tax professional about this?
Customer: No
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: 13 days ago.
Category: Tax
Expert:  TaxRobin replied 13 days ago.

Option 1 leaves you only taxed in the UK.  Unless you are a US citizen you are not taxed by the US on income received for work performed outside the US.

Customer: replied 13 days ago.
Thanks! Would Option 1 be the better route leading to a higher take home pay once UK taxes are paid? What would need to be done in order for Option 1 to be legally compliant for a UK citizen?
Expert:  TaxRobin replied 13 days ago.

In the UK, there are no restrictions on whether you can work remotely for a company in another country, including the US. However, you have to pay income tax to the UK and meet tax liability requirements.