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I’m a US citizen and not a tax expert. You should get professional advice. The US and UK have tax treaties that may/should exempt you and your company from dual
by gregjor 4y ago
I’m a US citizen and not a tax expert. You should get professional advice. The US and UK have tax treaties that may/should exempt you and your company from dual taxation. I’ve never heard of US companies withholding taxes for foreign freelancers but don’t take my word on that.
If you’re working remotely the only liability you can have is breach of contract, which is covered by law. E&O (errors and omissions) coverage exists but I have been asked about that exactly once and when I said I don’t have it and won’t pay for it the customer dropped the issue. Because of the time and expense involved even between two US-based parties in our legal system I think it’s best to avoid situations that can lead to such disputes. That’s why I don’t do green fields projects with big up-front payments or deposits.
- Chris_Newton 4y agoIt was the expert advice that warned me about the odd tax situation. My current understanding is that the UK and US do have a tax treaty and it does mean we don’t have to get double-taxed for this kind of engagement, but to avoid it there is a particular form we have to give to any US-based client that they keep as evidence of the above so they don’t have to deduct US tax at source before paying us. But as you say, if anything like this ever went ahead, this is definitely a taking-professional-advice situation, particularly if that form is at all tricky to fill out.