# [TAXES] Brit working in US for US Company



## MindtheGAAP (Dec 1, 2014)

I'm thinking that Bev will know the answer to this scenario; I did a quick search for prior threads but don't believe it has been addressed specifically before.

I'm an Englishman living in Dallas currently (perm res), working for an exclusively American company. There's a project that I have been asked to consider (I'm a Consultant) that is located in London and would last approx. 4 months. I know there are tax rules for Americans working in England (182 days), but the basic question I have is:

As an Englishman, I'd technically be earning my compensation in England, from a US Company, getting paid through our standard (US) payroll system. Would I owe taxes on the income that was "earned" in London during this time? 

I want to be sure I don't short-change myself and incorporate any such liability into my discussion with my firm. 

Thanks all!


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## nyclon (Apr 3, 2011)

I've moved this to the tax forum.


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## MindtheGAAP (Dec 1, 2014)

Thanks Nyclon... Apologies for the mistake


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## Bevdeforges (Nov 16, 2007)

OK, as a permanent resident in the US, you pay your US taxes exactly the same as any other US taxpayer. And as you've outlined the situation, you would just pay your normal US taxes on whatever you were paid while working in the UK.

The "overseas earnings" provisions only kick in if you satisfy either the physical presence test or the bona fide resident test - both of which require a full year of being outside the US. 

I'm assuming you have already "checked out" of the UK tax system when you took up residence in the US. So you shouldn't wind up paying UK taxes on your salary while back there. I know the UK goes by the 183 day rule to some extent, but only for determining residence. For US purposes, it's not really applicable. You really have to be outside the country for a full year (well, 330 days in a 12 consecutive month period, or one full calendar year).
Cheers,
Bev


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## MindtheGAAP (Dec 1, 2014)

Bevdeforges said:


> I'm assuming you have already "checked out" of the UK tax system when you took up residence in the US. So you shouldn't wind up paying UK taxes on your salary while back there. I know the UK goes by the 183 day rule to some extent, but only for determining residence. For US purposes, it's not really applicable. You really have to be outside the country for a full year (well, 330 days in a 12 consecutive month period, or one full calendar year).


That is correct, Bev... Fully checked-out of the UK tax system (have been here in the US for 8+ years). So the take-away from this is that there is no impact to me except for jet lag and getting some airmiles..?

Just wanted to confirm - appreciate the reply!


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