Working in US, contracting for UK company

[GeoffM]

This is probably the wrong way around for this type of forum (UK-based) but I'll give it a go anyway - probably why I can't find much relevant searching on this site.

Currently I'm a salaried UK employee of a UK company. Soon I will be in the US (I will have a visa, EB1A) but my employer is keen for me to continue to do work for them. I thought we'd agreed on a strategy of how to do this - I would set up a legal entity in the US and bill the UK company by the hour.

But my boss is now questioning things like IR35 and IR45, neither of which I've come across before. My understanding was that UK company employs a US company to do work for them: end-of. I'd pay US taxes at my end; the UK end doesn't need to worry about payroll, pension, NI, or [some] taxes as they're employing a company, not a person.

I understand that he wants to be careful and do everything by the book, which is exactly what I want too. However, I don't want to be forced down an unnecessary path which causes more paper work and cost.

Is there anybody on this forum who has done a similar thing and/or can offer advice? I have an accountant meeting tonight; somebody who is qualified as both a US and UK accountant but I suspect his time will become costly once we get deep into things. Many thanks.

[TheFaQQer]

IR35 is nothing to do with the client, so even if you were contracting in the UK, it's nothing for the client to worry about.

[TheFaQQer]

IR45 is the HMRC leaflet "What to do about Tax when Someone Dies". Since you will no longer be their employee, then they don't have anything to do if you die.

[northernladuk]

IR35 is nothing to do with the client, so even if you were contracting in the UK, it's nothing for the client to worry about.

And IR45 is about what to do when someone dies and has been withdrawn since 26/04/06 ??

HM Revenue & Customs: Withdrawn leaflets

[TheFaQQer]

And IR45 is about what to do when someone dies and has been withdrawn since 26/04/06 ??

HM Revenue & Customs: Withdrawn leaflets

KUATB

[GeoffM]

Ignore the IR45 bit - boss couldn't remember the exact number and I should have said "IR35 or IR45(?)".

Anyway, so IR35 would apply to me, not the employer, except I won't be in the UK so it won't apply anyway?

Is there anything else I should be aware of, or make my boss aware of? Obviously there will be legal and accounting advice at some point but the more prepared we both are, the better. Any other ways of doing business that might be better or is this the best way?

By the way, it's IT-based so I do all my work on a PC.

Thanks.

[Wanderer]

But my boss is now questioning things like IR35 and IR45, neither of which I've come across before. My understanding was that UK company employs a US company to do work for them: end-of. I'd pay US taxes at my end; the UK end doesn't need to worry about payroll, pension, NI, or [some] taxes as they're employing a company, not a person.

That would be my understanding too. Tell your boss that you will not be living or working in the UK, so you won't be liable for UK taxes...

[GeoffM]

That would be my understanding too. Tell your boss that you will not be living or working in the UK, so you won't be liable for UK taxes...

That's good to know, thanks. I think he's just being ultra cautious but it's certainly causing me to work at defending my position!