Living in the UK, working for a US firm-help!?

[adin55]

Hi,
I've been offered a job working for a US company (living in the UK) but the contract is under NY law and the pay is in dollars. I think I'll have to get an accountant to sort out the pay/tax issue but does anyone know
a) Will I be subject to US or UK taxes?
b) The contract states 10 days holiday. I currently get 25 plus bank holidays. Am I entitled, as someone living in the UK, to the minimum of 20 days plus bank holidays or do I have to succumb to the 10?
Many thanks in advance- really ned advice!
J

[aethelbert35]

if you agree to the contract, you agree that the terms of employment are subject to New York law. You would definitely have to negotiate for the 25 days leave plus bank holidays. tell them that a U.S. government employee with 15 years' service gets 26 days (8 hours per two-week pay period) plus Federal holidays and if they want to recruit in the UK they should plan on meeting prevailing UK standards.

Taxes. If you are a US citizen, then a US firm will deduct US taxes. I have no idea what they may do with regard to British taxes. H & R Block will probably have offices in London and other major cities. US tax returns allow credit for taxes paid to foreign (e.g., British) jurisdictions. If the contract's validity is in and in accordance with New York law, then you are probably liable for Federal and for New York state taxes. In addition to [probably] frree advice from H & R Block, you may get information from the Internal Revenue Service (irs.gov), which likely has a free publication in print and online.

If you are a US citizen, be cautious of volunteering information about British income which has not previusly been reported in the US.