# Corporation Tax / PAYE / NI liability for remote worker in US



## UK-US-Remote-Worker (5 mo ago)

Hi,

Thank you for looking, if you do!

In simple terms...


We run a UK Ltd
We have been use an IT sub-contractor, remotely in the US
And have been paying him gross, no deductions
He is British, but has US residency
We are NOT the only company he has been working for over the last couple of years. He hashad multiple clients

A couple of questions...


should we have been paying any UK or US taxes on his behalf?
I have no idea whether he has declared any of his income either from us, or anyone else, to either the UK HMRS or US IRS

Do we have any tax liability, US or UK? CT, PAYE or NI?

Many thanks.

Fiona


----------



## Bevdeforges (Nov 16, 2007)

The simplest approach to all this would probably be to pay him as a vendor (i.e. against invoices he prepares and sends to you). That gets your company in the clear. The remote worker is then working in the US as an "independent contractor" and should be declaring his business revenues and expenses - perhaps on a schedule C as a "sole proprietor" business. Especially if he has multiple clients. Income taxes and social insurances (basically what is called "self-employment tax") is on him.


----------



## UK-US-Remote-Worker (5 mo ago)

Hi Bev(?)  

Many thanks.

Yes, that's exactly what we've been doing - I've approached it just bas I would if he was a UK-based IT contractor.

He invoices. I pay.

He sorts his own tax out, and in my mind, as he has other clients, he can't be confused as an employee. Self-employed and outside IR35.

Thanks for reassurance.

Fiona


----------

