Hi,
I'm currently working as a permanent employee in the states but at the end of this year my H1-B Visa runs out so I have to come back to the UK. My employer is happy enough for me to continue working for them remotely in the UK but it'll have to be as a contractor.
I haven't done anything yet (like form a limited company) and I'm looking for advice. It would be best if I could avoid having to charge them VAT, with it being a pain in the butt for them trying to recover international VAT. What should I do to avoid having to charge them VAT?
I took a look in the thread where somebody asked about billing a french company but the person said they were a sole trader so that's different. Would it be best if I setup as a sole trader also? Last time I was contracting in the UK (early 90's) I seem to recall there being an income limit as sole trader. I could be totally wrong there though. My income would be around 50-60k GBP.
Would it be also ok for me to bill in dollars? I'd be issuing an invoice twice a month for the same amount in dollars, but if it's in GBP then I'd have to calculate the amount each time. What I could do I guess is issue the invoice to the client in dollars, and once the money arrives in the bank, I'd write up another invoice for that amount in GBP for accounting purposes. Strictly speaking it might break some rule, but it's not an attempt to cheat in any way so I'm not sure if it'd be frowned upon or not.
The only things that are fixed are that the client is in america and wants to be charged in dollars without VAT, the income would be 50-60k GBP and I'd be UK based. The more I want to deviate from this, the more the company would start thinking it's becoming not as easy as I'd promised.
Any suggestions/advice welcome
edit: a quick summary of IR35 would be useful. Never heard of this before. I won't be using an agency if that's relevant.
~d
I'm currently working as a permanent employee in the states but at the end of this year my H1-B Visa runs out so I have to come back to the UK. My employer is happy enough for me to continue working for them remotely in the UK but it'll have to be as a contractor.
I haven't done anything yet (like form a limited company) and I'm looking for advice. It would be best if I could avoid having to charge them VAT, with it being a pain in the butt for them trying to recover international VAT. What should I do to avoid having to charge them VAT?
I took a look in the thread where somebody asked about billing a french company but the person said they were a sole trader so that's different. Would it be best if I setup as a sole trader also? Last time I was contracting in the UK (early 90's) I seem to recall there being an income limit as sole trader. I could be totally wrong there though. My income would be around 50-60k GBP.
Would it be also ok for me to bill in dollars? I'd be issuing an invoice twice a month for the same amount in dollars, but if it's in GBP then I'd have to calculate the amount each time. What I could do I guess is issue the invoice to the client in dollars, and once the money arrives in the bank, I'd write up another invoice for that amount in GBP for accounting purposes. Strictly speaking it might break some rule, but it's not an attempt to cheat in any way so I'm not sure if it'd be frowned upon or not.
The only things that are fixed are that the client is in america and wants to be charged in dollars without VAT, the income would be 50-60k GBP and I'd be UK based. The more I want to deviate from this, the more the company would start thinking it's becoming not as easy as I'd promised.
Any suggestions/advice welcome
edit: a quick summary of IR35 would be useful. Never heard of this before. I won't be using an agency if that's relevant.
~d
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