# Working in the US but for a UK company?



## Matthew Houghton (Mar 12, 2009)

Hi 

My request is quite a complicated one and I have tried to research the answer but cannot find anything.

I currently own my own company and perform consultancy work for a UK company. The UK company has an office in the US who have offered my a short term consultancy project.

I want to take this job but am unsure about how to be runemerated for my services? Does anybody have any ideas?

Is it as simple as working for the US office and then providing them for a bill for my company? Or is this not a possible arrangement?

Any help would be greatly appreciated

Thanks Matt


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## twostep (Apr 3, 2008)

With what visa do you plan to work in the US?


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## Matthew Houghton (Mar 12, 2009)

twostep said:


> With what visa do you plan to work in the US?


I was planning on just coming to the US on the VWP as most of the work I will be doing I will do from my office in London.

I will probably only be in the US a few days every month for meetings. Most of the work will be done from the UK

That is why I am curious about how to be runemrated for my services?


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## Fatbrit (May 8, 2008)

Matthew Houghton said:


> I was planning on just coming to the US on the VWP as most of the work I will be doing I will do from my office in London.
> 
> I will probably only be in the US a few days every month for meetings. Most of the work will be done from the UK
> 
> That is why I am curious about how to be runemrated for my services?


Be careful with the VWP travel. Attending meetings is fine, and the pattern of a few days a month fits business travel. But other "work" may be outside the remit of VWP travel.

Surely the easiest way to pay you is for the US company to pay the UK company, and for them then to pay you?


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## Matthew Houghton (Mar 12, 2009)

Fatbrit said:


> Be careful with the VWP travel. Attending meetings is fine, and the pattern of a few days a month fits business travel. But other "work" may be outside the remit of VWP travel.
> 
> Surely the easiest way to pay you is for the US company to pay the UK company, and for them then to pay you?


You would think! But they are being awkard about that! In case there are tax implications! hence I am trying to find away that I can invoice direct!


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## Bevdeforges (Nov 16, 2007)

Matthew Houghton said:


> You would think! But they are being awkard about that! In case there are tax implications! hence I am trying to find away that I can invoice direct!


Like fatbrit says, if you're doing legit "business travel" on an occasional basis to the US, but most of the actual work is being done in the UK, travelling on a VWP shouldn't be an issue. Just tell them on entry that you're coming over for client meetings or something similar. 

You should be able to invoice the US office directly. (Be sure to get an understanding ahead of time on what currency you're going to use for both billing and payment!) One thing to note, though, is that you will probably have to invoice them for VAT (which adds 17% or so to their bill) if you normally bill your customers for VAT in the UK. Goods can be exported and thus avoid the tax, but services are taxed where they are performed.

The Americans tend to think that "services" are exempt from VAT because in most states services are exempt from sales tax. You may want to check with your accountant or with the tax service just to be sure, but I recently read an article here in France raising this issue and most VAT matters seem to be handled similarly between the various EU countries. (OTOH, it might motivate the US office to find a way to work through their UK headquarters so that the HQ would at least get the benefit of the VAT paid.)
Cheers,
Bev


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## Matthew Houghton (Mar 12, 2009)

Bevdeforges said:


> Like fatbrit says, if you're doing legit "business travel" on an occasional basis to the US, but most of the actual work is being done in the UK, travelling on a VWP shouldn't be an issue. Just tell them on entry that you're coming over for client meetings or something similar.
> 
> You should be able to invoice the US office directly. (Be sure to get an understanding ahead of time on what currency you're going to use for both billing and payment!) One thing to note, though, is that you will probably have to invoice them for VAT (which adds 17% or so to their bill) if you normally bill your customers for VAT in the UK. Goods can be exported and thus avoid the tax, but services are taxed where they are performed.
> 
> ...


Hi Bev

Thanks for your reponse. I have checked the VAT issue and according to the HMRC if I am in the UK but the place i supply services to is outside the EU then I do not have no charge VAT as it is not applicable. 

Matt


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## twostep (Apr 3, 2008)

You are getting into some very murky waters here.
Your client will not run US funds to the UK operation thus leaving no money trail. If you are refused entry at some point - the monkey will be on your back alone. Will you be able to finish your contract off site if necessary?


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## Fatbrit (May 8, 2008)

twostep said:


> You are getting into some very murky waters here.


Agreed! Do not let the company push you into other work while you're here attending meetings. It's more likely to come back to bite you than them.


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## Matthew Houghton (Mar 12, 2009)

Fatbrit said:


> Agreed! Do not let the company push you into other work while you're here attending meetings. It's more likely to come back to bite you than them.


Thanks for all the advice - I think I will start speaking to some of the senior people this side of the pond so that I don't end up doing anything i shouldn't!


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## twostep (Apr 3, 2008)

Please keep us posted. Employers on both sides of the pond are often ill informed about visa issues or even disregard them.


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## Fatbrit (May 8, 2008)

Matthew Houghton said:


> Thanks for all the advice - I think I will start speaking to some of the senior people this side of the pond so that I don't end up doing anything i shouldn't!


You might suggest they consult a US immigration lawyer.


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