US-UK Tax Talk
Welcome to US-UK Tax Talk, brought to you by Collyer Bristow. Hosted by Aidan Grant, a Partner in our Tax & Estate Planning team, this series explores the complex world of cross-border tax and estate planning.
Aidan specialises in advising high-net-worth individuals with UK-US interests, including mixed-domicile marriages, UK-resident US citizens, and beneficiaries of US trusts. Named in Citywealth’s Top 100 Future Leaders, he brings expert insight and practical advice to every episode.
Join us as we engage with leading professionals across the UK and US, covering everything from wills and trusts to charity tax, and moving to the UK. Expect straight-talking discussions on English tax law - always with a US perspective.
Subscribe now and stay informed on the latest in UK-US tax and estate planning. For expert advice tailored to your needs, visit collyerbristow.com.
Disclaimer: This content is provided for general information only and does not constitute legal or other professional advice. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information contained in this material.
US-UK Tax Talk
What Happens If You Run Your US Business from the UK?
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In this episode of US-UK Tax Talk, Aidan Grant is joined by Alex Straight, Partner in the US team at Blick Rothenberg, to discuss the tax and practical issues that arise when entrepreneurs and business owners run a business cross-border between the UK and the US.
Aidan and Alex explore what happens when a US business owner moves to the UK and continues to manage or work for their business. They discuss central management and control, permanent establishment risk, and why a US company can accidentally become exposed to UK corporation tax, reporting obligations and Companies House disclosure requirements.
The conversation also covers the use of UK subsidiaries, branches and employer of record arrangements, as well as payroll, PAYE, National Insurance and social security considerations for employees working across borders. Alex also explains why non-cash remuneration, share awards and deferred compensation can become particularly complicated when employees move between the US and the UK.
Come back for new episodes of US-UK Tax Talk released on the first Wednesday of every month.
For questions or feedback, please contact us:
🔗 Aidan Grant – Partner, Collyer Bristow
https://collyerbristow.com/people-listing/aidan-grant/
🔗 Alex Straight – Partner, Blick Rothenberg
https://www.blickrothenberg.com/
🔗 Collyer Bristow
https://collyerbristow.com/
🎧 Listen on the go
https://podcasts.apple.com/gb/podcast/us-uk-tax-talk/id1570411216
Key Takeaways
- When should business owners start planning before moving to the UK?
Ideally, planning should begin before the move takes place. Business owners need to understand not only their personal UK tax position, but also whether their activities could affect the tax residence, reporting obligations or structure of their business. - What is central management and control?
Central management and control looks at where the real strategic decision-making of a company takes place. If a US company is effectively managed and controlled from the UK, HMRC may treat it as UK tax resident. - Why can central management and control be a problem?
If a US company becomes UK tax resident, it may need to register in the UK, file accounts, disclose directors and beneficial owners, and potentially pay UK corporation tax. The US-UK tax treaty does not contain a simple corporate residence tie-breaker, which can create double tax risk. - What is a permanent establishment?
A permanent establishment can arise where a non-UK company carries on substantive business activity in the UK. This may include generating revenue, concluding contracts or having a dependent agent operating in the UK on behalf of the business. - Why might a UK subsidiary be useful?
A UK subsidiary can help ring-fence UK activity, manage local tax and reporting obligations, and limit the exposure of the wider US business. It can also provide a clearer structure for employees, customers, VAT, payroll and local compliance. - What employment issues arise when someone works in the UK for a US business?
Even where there is no UK subsidiary, a US employer may still need to consider UK payroll, PAYE, National Insurance, pensions and HR obligations if an employee is working from the UK. Employer of record arrangements may sometimes be used to manage these obligations. - How can National Insurance and US Social Security interact?
Employees working in the UK may be subject to UK National Insurance, although in some cases a certificate of coverage may allow them to remain within the US Social Security system for a period. This needs careful planning, especially for people moving later in their careers. - Why do share awards and deferred compensation create extra complexity?Non-cash remuneration such as stock awards, RSUs and deferred compensation can be taxed differently in the US and UK. The tax treatment may depend on where the employee was working during vesting periods, what elections were made, and how the employer reports the award.
