Doing a US based Global Role living in the UK
Discussion
I may have the opportunity to move from a UK a role to a remote Global role within the company I work for. The Global headquarters is based in New Jersey, but i would continue to live in the UK with fairly regualr travel to differtent parts of the world.
In terms of tax etc. can anyone offer any advice on what I need to be aware of in relation to compensation package? For example tax and other fees, annual leave etc?
Basically, i want to be able to work out what my net take home would be at different salaries in this situation compared to what I currently get.
Cheers.
In terms of tax etc. can anyone offer any advice on what I need to be aware of in relation to compensation package? For example tax and other fees, annual leave etc?
Basically, i want to be able to work out what my net take home would be at different salaries in this situation compared to what I currently get.
Cheers.
How are you getting paid? As an employee? If you are getting tax deducted at source in the USA, then you would imagine it would be covered by a double taxation treaty.
iirc if the USA is taxing more than UK, then fine, otherwise you may need to pay additional tax in the UK to account for difference?
May be wrong though.
https://www.gov.uk/tax-foreign-income/taxed-twice
iirc if the USA is taxing more than UK, then fine, otherwise you may need to pay additional tax in the UK to account for difference?
May be wrong though.
https://www.gov.uk/tax-foreign-income/taxed-twice
For much of my career I've done "global" roles based in the UK. So long as your contract is still with the UK business, states your current place of work staying the same, and you are paid from there, it won't make any difference. I'd be surprised if it was anything different to that. Your travel should be expensed accordingly. Get used to jet lag.
Steve Campbell said:
For much of my career I've done "global" roles based in the UK. So long as your contract is still with the UK business, states your current place of work staying the same, and you are paid from there, it won't make any difference. I'd be surprised if it was anything different to that. Your travel should be expensed accordingly. Get used to jet lag.
Thanks. I'm not sure where i would be paid from; it is a US company and most people who work for Global are in New Jersey. This is an area I know very little about!mjw0321 said:
Steve Campbell said:
For much of my career I've done "global" roles based in the UK. So long as your contract is still with the UK business, states your current place of work staying the same, and you are paid from there, it won't make any difference. I'd be surprised if it was anything different to that. Your travel should be expensed accordingly. Get used to jet lag.
Thanks. I'm not sure where i would be paid from; it is a US company and most people who work for Global are in New Jersey. This is an area I know very little about!The company will do one of two things; either they'll pay you via a UK subsidiary or directly from the US. If the latter, two things to watch for. One has already been mentioned in terms of the differing tax levels and the other is currency fluctuation. If your contracted salary is stated in USD then you run the risk of loss as a result of exchange variation. But equally, some months you may be up. If you are going to get paid in USD then worth opening a Dollar bank account and transferring only what you really need into your everyday account. That way, you can convert when the rate is in your favour.
The other option is that they may expect you to operate as a 'freelance' and pay you everything nett and leave you to sort your own tax arrangement - but this is an awkward scenario for you and for them and they may not be aware of the regulations on what constitutes someone being a freelance.
So, really, it comes down to seeing what is written in your contract and checking with HMRC once you know.
...or wait for EricMC to drop by
I was in a similar role when I worked for Oracle Consulting (staff position not contract). I was in the Global Energy Industry Vertical Division which was headquartered in Houston, but for tax purposes I was employed in the UK from the UK headquarters in Reading, I worked all over the world but still paid tax in the UK under PAYE.
I used to work in New England and get paid in the UK.
The company and I had to keep two sets of information. I was taxed in the UK but still had to fulfill the USA tax obligations, and complete their tax forms. I was lucky because the company provided suitable accountants to complete both and the company paid my US tax bill until the end of the year comparisons were done. I dread to think what the accountants final bill was.
You really need to get good advice, yours may not be as complicated but you never know.
If you are paid from the States then the same applies from this end, plus you lose on exchange rates. It's as clear as mud
PS if your tax situation was as mine, I was advised not to sell anything like my house as there significant implications on the US side. Ask Boris
The company and I had to keep two sets of information. I was taxed in the UK but still had to fulfill the USA tax obligations, and complete their tax forms. I was lucky because the company provided suitable accountants to complete both and the company paid my US tax bill until the end of the year comparisons were done. I dread to think what the accountants final bill was.
You really need to get good advice, yours may not be as complicated but you never know.
If you are paid from the States then the same applies from this end, plus you lose on exchange rates. It's as clear as mud
PS if your tax situation was as mine, I was advised not to sell anything like my house as there significant implications on the US side. Ask Boris
Basically you are tax liable where you work/are paid and/or where you are tax resident/domiciled. Rules differ, If you are paid in the UK but work offshore in Norway the UK will not tax you at source even if paid in the UK and the Norwegians will. If you are paid In Malaysia but work and live in Dubai, the Malaysians will tax you, even if Dubai is tax free, as they tax all income 'sourced' in the country. Two real examples from my life.
Remember in practice the country you are paid in get first dibs at your money as its in their country. If they are to give this up you need to give them a reason (E.g. I live and perform he duties outside the country I'm paid in). I'm sure you could get the Americans to do this if you can demonstrate your tax domicile as the UK.
My experience is that payroll departments in a country are not best pleased or expert in running tax systems for other countries, as above I was paid in the UK but taxed in Norway (there are NHI advantages this way), no big issues but year end tax forms adn payments were always delayed, and the revenue wanted to pay rebates to the employer not me.
The UK will tax you on your world wide income, but should allow you to deduct any tax imposed overseas either under a tax treaty or as unilateral relief.
So in your case you will pay UK tax and should get any American tax offset, regardless of where you are paid. But you need to talk to the tax man and get the process in place
In the 80's when I worked globally you could get a deduction (i think it was 25%, from the UK tax due for the period you where overseas) but that is long gone.
My experience is discuss it with your employer, I work for an American group now, outside America, neither they or I want to get involved with American tax filing for a UK citizen so I'm paid from India, n problem except I have to provide a pay slip to my bank as they are concerned about money laundering with receipts from India.
One thing I do is i specifically withhold the right from my accounts to disclose any information to the IRB in the USA without a court order, EY will not deal with me on this basis but PWC will so no issue
Remember in practice the country you are paid in get first dibs at your money as its in their country. If they are to give this up you need to give them a reason (E.g. I live and perform he duties outside the country I'm paid in). I'm sure you could get the Americans to do this if you can demonstrate your tax domicile as the UK.
My experience is that payroll departments in a country are not best pleased or expert in running tax systems for other countries, as above I was paid in the UK but taxed in Norway (there are NHI advantages this way), no big issues but year end tax forms adn payments were always delayed, and the revenue wanted to pay rebates to the employer not me.
The UK will tax you on your world wide income, but should allow you to deduct any tax imposed overseas either under a tax treaty or as unilateral relief.
So in your case you will pay UK tax and should get any American tax offset, regardless of where you are paid. But you need to talk to the tax man and get the process in place
In the 80's when I worked globally you could get a deduction (i think it was 25%, from the UK tax due for the period you where overseas) but that is long gone.
My experience is discuss it with your employer, I work for an American group now, outside America, neither they or I want to get involved with American tax filing for a UK citizen so I'm paid from India, n problem except I have to provide a pay slip to my bank as they are concerned about money laundering with receipts from India.
One thing I do is i specifically withhold the right from my accounts to disclose any information to the IRB in the USA without a court order, EY will not deal with me on this basis but PWC will so no issue
Sounds like you've been watching too much Gordon Gecko 
It's just a UK job with UK pay with a bit of foreign travel. Thousands of people do similar roles.
You'd be better off seeing if you can move to the US. America is a much richer country, wages and bonuses are usually significantly higher, and the closer you are physically to HQ the likelier you are to get promoted to the very top roles.
It's just a UK job with UK pay with a bit of foreign travel. Thousands of people do similar roles.
You'd be better off seeing if you can move to the US. America is a much richer country, wages and bonuses are usually significantly higher, and the closer you are physically to HQ the likelier you are to get promoted to the very top roles.
It's important for you to try to be employed by a UK part of the business (if they have one). Firstly it'll make the tax position much, much easier to work out, and secondly you'll make sure you don't end up with US style conditions (2 weeks' holiday, no sick leave, etc.) which is no fun at all.
Be careful how many days you spend in the US as they do look at tax residency. If there isn't a Uk legal entity the new it should be ok as you will be paid in the Uk.
Watch out as said before about extended hours in a global job..... people can forget that you are in the evening and over time they just assume you will make yourself available
Watch out as said before about extended hours in a global job..... people can forget that you are in the evening and over time they just assume you will make yourself available
swerni said:
Yipper said:
It's just a UK job with UK pay with a bit of foreign travel. Thousands of people do similar roles.
And it there is no current UK entity ?There is a UK entity, he currently works for it.
Unless there is something OP hasn't mentioned I think this is being seriously over complicated.
t.Thanks for the replies. I’ll just have to speak to the company to see what the options are.
It isn’t a UK role BTW; it is a Global role for a large American Pharma company and the role is based in the US; I am negotiating to see if I can do it remotely with an element of travel as my personal circumstances do not allow me to relocate.
It isn’t a UK role BTW; it is a Global role for a large American Pharma company and the role is based in the US; I am negotiating to see if I can do it remotely with an element of travel as my personal circumstances do not allow me to relocate.
troika said:
The only difference is that you’ll be on the phone every evening.
This...When you start, people will ‘try’ and accommodate... but that one important call you can’t miss turns into 2 and 3 then every week. Then most days.... just be prepared when it’s your turn to cook, or put the kids to bed, or go to the pub on a Friday.
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