U.K. and Ireland - Immigration with an American Income

I'm having trouble finding out if there are any special considerations for American freelancers who wish to migrate to the UK. I'm a writer, and all of my contracts are remote assignments with American companies. I can ultimately work from anywhere in the world, so I'd like to take advantage of that mobility, and being a pretty devout Anglophile, Britain would be ideal. I'm married and have two children, but my husband works for Best Buy and could easily transfer into the UK stores that just started opening over there. Does anyone have any knowledge of the procedures to get that ball rolling, or even any suggestion of where to start looking or someone I could talk to? Most of the information I've found is pretty standard stuff for students or people looking to actually work in the UK.

Thanks!

Well if you are in the UK , you will be working in the UK - doesn't matter if your income is created in the US , you will need to pay income tax in the UK and you will need a work visa.
If your husband can get a work visa from best buy you can be a depended and depends on the visa you might be able to work as well.
Your status is not different then the rest that are looking to work in the UK

I think the key thing here is sponsorship...in my case, my employer sponsored me in obtaining a UK work visa. If I had dependents, they would be sponsored as well.

Not sure how one would go about "just moving to the UK" without being a student or having a work visa sponsor...

You might check out the UK Yankee forum (http://talk.uk-yankee.com/) for more immigration-oriented information. Given the current government's attempts to reduce net migration, I think you'll find it very difficult if not impossible to get a visa for yourself, unless you rake in tons of money through your freelancing. The best bet would be for your husband to secure a transfer that includes visa sponsorship, as most likely the category of visa you'd get as a dependent would allow you to work.

I'm married and have two children, but my husband works for Best Buy and could easily transfer into the UK stores that just started opening over there.

You mean the Best Buy stores that just ceased trading? A salutary lesson in how you cannot simply take a successful retail operation in one market and ship it lock, stock and barrel to another without making some effort to respect and understand local that local retail market. But, I digress.....

http://www.carphonewarehouse.com/bestbuy
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9204565/Best-Buys-problems-should-be-a-cautionary-tale-for-UK-retailers.html

my husband works for Best Buy and could easily transfer into the UK stores that just started opening over there.!

I take it you havent discussed this with your husband, all the Best Buy shops closed last year

I came over to the UK as part of a consulting project a number of years ago and UK immigration was understandably less than welcoming. Our clients had to demonstrate why we were necessary and why no UK options were available etc.. All pretty standard stuff and rightly so. We were locked into 1 client, for short periods we had to renew (each time as an exceptional never again case), banks didn't want to know us and immigration at Heathrow just gave us a heck of a looking over every time. All of this I understood and took as a cost of doing business and the USA does the same thing in reverse.

What surprised me was how well the spouses were treated. The spousal visa (I think that's what it's called) was rubber stamped and had virtually no restriction other than it lasted as long as our work permits did. My advice: if you must go the the UK - go as a spouse. Otherwise, as a freelancer you'll face a tough time even if you could demonstrate reliable income.

But moving the UK is a big deal and I've watched a number of American friends retreat but quick after a few months. These are folks that would have been top 5% income in the UK and had a very nice lifestyle. It's not that the UK is a bad place to live. Once the novelty factor wears off - it's a very different place to live than the States and some folks are just not prepared for it. Things in the UK happen at a more human scale - sometimes that's good, sometimes not. Ironically, I've noticed Americans with no particular interest in living the UK originally seem to do rather well here. I've been planning to "head back to NYC in the next few months" for 14 years now! Families have a tougher time than couples/singles.

As another poster mentioned, there are tax implications on both sides of the Atlantic. Work through this with some accountants who know about it. UK/US Expat taxation is a specialty and not many accountants on either side of the Atlantic are in a position to advise. You'll need one for each side of the Atlantic as they tend not to want to advise on the other sides tax laws. I went to a lecture from these guys (http://www.buzzacott.co.uk/specialist-teams/expatriate-tax-services) the other day and they seemed to hit the right buzzwords. I'd poke around the web site just to get an idea of the issues but I don't know much about them beyond I attended a lecture.

There is a double taxation treaty but there are different tax systems and you'd be surprised at what falls through the cracks. Selling a home in the US (1031 exchange) might generate a nasty tax bill in the UK for example. Income you bring into the UK is taxable and after 7 years (I think), the UK has a claim on your world wide income and after 17 years (I think) you're liable for Estate taxes. But the USA will always want a cut of the action no matter where you are.

As a freelancer, however, you might find it better to downsize in the States and maintain both residency and domicile. If you come across a project that will take a couple of months - rent a home in UK for the time period and write it off against the income generated in the US. As long as you don't establish residency or domicile in the UK there's probably not much the UK can do (you're on holiday after all). If you are prepared to spend the working week apart, there are city pairs that are very commutable over the weekend (e.g. NYC/LHR) which might offer more economic security should you decide to return (or indeed jump in with both feet).

As for Best Buy, well that came and went pretty quickly and I'd say the UK and Europe will have a tough few years ahead. As a visitor this will be great for you - but if you're looking to make a living it will suck.

BTW: Vocabulary matters with this stuff. If you "intend to immigrate" that will imply something about domicile which will have a tax/immigration consequence. On the other hand if you're going to the UK on a temporary basis things are a bit more relaxed. But this is stuff you should seek professional advice on.

Ironically, I've noticed Americans with no particular interest in living the UK originally seem to do rather well here. I've been planning to "head back to NYC in the next few months" for 14 years now! Families have a tougher time than couples/singles.


Sounds a little famliar. I came to the UK on a fellowship, and it was all for the opportunity of the fellowship. Had never been to the UK, had no idea what it would be like, and would not have ever contemplated applying for a permanent job here. Turns out that I really like it here and did well, perhaps because I had no romantic, idealized notions about what it should be. When it was time to start applying for jobs, I really wanted to find something to stay. Given budget cuts to higher education, it was not in the cards right now. However, I'll be keeping my eye on vacancies back in the UK as I go back on the academic job market in the next few years.

Best Buy also owns half of Carphone Warehouse (and indeed CW ownd half of the now defunct UK Best Buy chain)

Do you or your husband have a grandparent from Ireland, Italy, Hungary, or possibly some other EU countries? If so, you might be able to get a passport from those countries which would allow you to work in the UK. If one of you has a grandparent from the UK, then you would qualify for a UK ancestry visa if you could get Canadian or another Commonwealth citizenship first.

Since you're married already, that's probably the only way you can get in. Even if the Best Buy route was still available, you'd still need to earn at least £40,000 per year to stay for more than 12 months on an intracompany transfer visa. There is no guarantee that you'll be allowed to stay permanently after your 5 or 6 years are up.

Also, even if you are working remotely for a US company and paid to a US bank, this is considered working in the UK. You are NOT allowed to do this as a tourist, and if caught you WILL be deported and banned for up to 10 years.

Lastly, I'm not a tax professional, but

Income you bring into the UK is taxable and after 7 years (I think), the UK has a claim on your world wide income and after 17 years (I think) you're liable for Estate taxes.

what? The UK claims your worldwide income from the moment you move here to live, i.e. for a solely US citizen, if you need a non-visitor visa to enter the UK.

You can only not be taxed on income in the US if it stays in the US and is not linked to the UK in any way whatsoever. If you do something like buy a flight to the UK with your US income, then it's counted for UK tax (whether HMRC finds out, or whether there's anything to pay if you pay US taxes too, is a different matter).

I don't know about inheritance tax, but I believe it is definitely due on any UK assets over £325K (£650K if shared with spouse), regardless of how long you have lived here, unless of course you meet some misfortunte as a tourist. Foreign estate may also count but if this actually affects you then obviously see a lawyer before you shuffle off...

I'm having trouble finding out if there are any special considerations for American freelancers who wish to migrate to the UK. I'm a writer, and all of my contracts are remote assignments with American companies. I can ultimately work from anywhere in the world, so I'd like to take advantage of that mobility, and being a pretty devout Anglophile, Britain would be ideal. I'm married and have two children, but my husband works for Best Buy and could easily transfer into the UK stores that just started opening over there. Does anyone have any knowledge of the procedures to get that ball rolling, or even any suggestion of where to start looking or someone I could talk to? Most of the information I've found is pretty standard stuff for students or people looking to actually work in the UK.

Thanks!

Welcome to FT!

The UK claims your worldwide income from the moment you move here to live, i.e. for a solely US citizen, if you need a non-visitor visa to enter the UK.

It's a bit more complicated than that.

The UK distinguishes between being "resident", being "ordinarily resident" and being "domiciled".

You're resident in the UK if you live and work here, even if it's just for a very short period.

You're ordinarily resident if you live and work here long-term.

The concept of "domicile" is a bit of a grey area, but broadly speaking you're domiciled here if you were born and/or. brought up here and if the UK is your home. You can be domiciled here without being resident (if you are temporarily working abroad). You can be resident and even ordinarily resident here without being domiciled.

It used to be the case that if you weren't domiciled here then you did not have to pay tax on foreign income as long as it wasn't remitted to the UK.

This is no longer the case.

Since 2008 any "non-dom" who has been resident for at least seven out of the last nine years has had to pay the UK government an annual sum of GBP 30,000 to retain their non-domiciled status. This is, of course, only worth doing if you have a LOT of unremitted foreign income.

Non-doms who choose not to pay the 30k are still exempt from paying tax on the first GBP 2000 of any unremitted foreign income but have to pay tax on the rest.

(As of the current tax year things have been tightened up even further and those who have been here 12 out of the last 14 years now have to pay 50k to the government instead of just 30k)

It's a bit more complicated than that.

The UK distinguishes between being "resident", being "ordinarily resident" and being "domiciled".

You're resident in the UK if you live and work here, even if it's just for a very short period.

You're ordinarily resident if you live and work here long-term.

The concept of "domicile" is a bit of a grey area, but broadly speaking you're domiciled here if you were born and/or. brought up here and if the UK is your home. You can be domiciled here without being resident (if you are temporarily working abroad). You can be resident and even ordinarily resident here without being domiciled.

It used to be the case that if you weren't domiciled here then you did not have to pay tax on foreign income as long as it wasn't remitted to the UK.

This is no longer the case.

Since 2008 any "non-dom" who has been resident for at least seven out of the last nine years has had to pay the UK government an annual sum of GBP 30,000 to retain their non-domiciled status. This is, of course, only worth doing if you have a LOT of unremitted foreign income.

Non-doms who choose not to pay the 30k are still exempt from paying tax on the first GBP 2000 of any unremitted foreign income but have to pay tax on the rest.

(As of the current tax year things have been tightened up even further and those who have been here 12 out of the last 14 years now have to pay 50k to the government instead of just 30k)

Yeah...that' why I'm planning to head back to NYC in the next few months :D

Good summary

I'm quite surprised no-one has yet mentioned the obvious: on what residence conditions is the OP (welcome to FT, by the way) planning to live in the UK?

I don't mean to patronise the OP, but just because you're an American doesn't mean that you can up sticks and settle down in any old part of England you choose. It's a lot more complicated than that.

Do you have any other nationalities other than US? (I'm assuming you're a US citizen.) Do you have a grandparent who was a British national, or a citizen of Ireland, Italy, Lithuania or any other EU country that allows grandparents to confer citizenship on grandchildren?

If not, then being granted residency in the UK is going to be much tougher than otherwise.

I suggest you have a good read through the various visa categories on the UK Border Agency website, as they are pretty neatly summarised and clear.

Here are the tier-1 visas (these are the ones that do not require sponsorship):

http://www.ukba.homeoffice.gov.uk/visas-immigration/working/tier1/

Do note that the tier-1 general visa is now closed to applicants from outside of the UK. Do also note that tier-2 visas would not apply to you as you are a freelancer and would not be sponsored by any company in the UK.

Do you have any other nationalities other than US? (I'm assuming you're a US citizen.) Do you have a grandparent who was a British national, or a citizen of Ireland, Italy, Lithuania or any other EU country that allows grandparents to confer citizenship on grandchildren?
I don't think a British-born grandparent will help the OP unless the OP is a Commonwealth citizen or was born in a place that was still a British colony at the time of the birth and the OP did not obtain citizenship of that country if/when it became independent.

A grandparent from Ireland and a handful of other EU countries are a different matter.

I don't think a British-born grandparent will help the OP unless the OP is a Commonwealth citizen or was born in a place that was still a British colony at the time of the birth and the OP did not obtain citizenship of that country if/when it became independent.

A grandparent from Ireland and a handful of other EU countries are a different matter.
Oh, sorry - I thought that this applied to anywhere in the world. I swear I knew some American friends who had British grandparents and took advantage of this. It was a very long time ago, though, so might have been some other provision.

Like Christopher, I think it's only through parents. And within my lifetime, it used to be father only :eek:

(Which is slightly bizarre, given you only ever truly know who your mother is unless you have a DNA test ;))

Like Christopher, I think it's only through parents. And within my lifetime, it used to be father only :eek:

Yes; Commonwealth citizens with a UK-born grandparent can get an "ancestry visa", which ultimately leads to settlement, but non-Commonwealth citizens cannot.

Commonwealth citizens with a UK-born mother had the right of abode in the UK before the 1981 Act came into force in 1983, though they were not automatically British citizens; the situation now is slightly complicated, but everyone (essentially) born to a UK-born mother since then is a British citizen by descent, and many such people born before then can now register as a British citizen by descent.