# UK citizen working as independent contractor in the US



## nayykcaj (12 mo ago)

Hi everyone,

Just wondering if anyone might have experience or advise for the following issues:

I hold a British passport and my British residence ties are property and employment in the UK. 
- British resident (since August 2021)

I used to work in the US, due to the extensive wait on US visas and EAD I had to
- End US Employment in August 2021

I now received my H4 visa but is still waiting on my EAD (US work permit) but I am trying to find a legal way to continue work with my previous employer while I wait for my EAD! perhaps as an independent contractor? or as a registered company?

The work I would have to do:

Most of the work could be done in the UK
I need to be in the US for approximately 3 - 6 months time for some in person work, it doesn't have to be continuous.

Any suggestions are grateful!


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## Moulard (Feb 3, 2017)

Its likely to be your UK employer who will constrain the options available to you ...normally shorter term stints overseas one can remain an employee without issue, its longer stays where it can be problematic - your UK employer will want to avoid having to establish themselves in the US

A couple high level pointers If you are to remain an employee...

Work you perform in the US will be considered US sourced, so you would need to file a a US tax return to cover your US salary. 

If you remain a tax resident of the UK, and the UK will have the right to tax your global income, 

Typically the tax treaty will require the UK to offer a deduction, offset, credit or exemption on income tax for US sourced income (according to the treaty terms and her domestic law)

Its possible (but unlikely) the US-UK tax treaty would re-source that income as UK sourced which would mean you go about your business as if you performed the work in the UK.

Given your recent time in the US you may bump into the substantial presence test and be considered a US tax resident - but again the treaty will have tie breaker rules.

The only other thing to bear in mind is the Totalisation agreement, given the circumstances you will likely remain under UK social security type arrangments, and would need to get a Certificate of Coverage from the UK to avoid any US Social Security contribution requirements.

If you end up having to work as a sole trader or have to set up some form of limited liability company then there are a bunch of other things that start to come into play.


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## nayykcaj (12 mo ago)

Moulard said:


> Its likely to be your UK employer who will constrain the options available to you ...normally shorter term stints overseas one can remain an employee without issue, its longer stays where it can be problematic - your UK employer will want to avoid having to establish themselves in the US
> 
> A couple high level pointers If you are to remain an employee...
> 
> ...


Thank you for your reply Moulard, very grateful for your help. 

Yes I understand complication of tax and there's a price to pay but I am quite desperate to continue work with my previous employer. Considering the current COVID and EAD processing time I am trying to find another legal way to continue my work with this company. 

My intention is to remain as a British citizen as I have property and business in the UK and could try to remain a British citizen by monitoring the other ties, such as days spend within the UK. I thought I could set up as a British sole trader and work with this US company as an independent contract. At least I think I could do it remotely but the problems comes with the in person work required. Would you know if I could work legally in the US in person with a Business visa while being paid as an independent contractor as a sole trader/ through a UK company I set up?


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## Moulard (Feb 3, 2017)

Fully understand wanting to keep secure employment in the current circumstances. 

I assumed that you were intending to work for your UK company remotely while in the US while trying to find something local.

I actually don't know enough about the EAD or H4 visa conditions to comment on whether you would be allowed to do that. I was coming from the assumption that you had already researched that part and found you could... if not.. check.

You definitely CANNOT work in the US on a B1 visa even for a foreign employer (although I have no doubt that it is done ... working holidays and the like)

The terms of the B1 visa are that you can only perform business related activities.

Even simply looking for work can be considered problematic as it suggests an intent to remain which is inconsistent with the visa conditions.


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