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I've been working for the same company ever since I left college. (It's been bought a few times by bigger companies, but I retained my start date, benefits, etc.) The person in charge of payroll is concerned that the UK or US governments will go after her if I change my legal residence from USA to the UK, and have her stop taking out federal and stare income taxes, and Social Security taxes. I've heard numerous times from HMRC that they don't care at all about the US company, and I'm the one who's responsible for paying self-assesment and NI taxes. (It would be a lot easier to pay the US taxes and pay HMRC the difference, but although the HMRC employees weren't sure, I think I read here that UK gets all the tax and I file with the IRS so I pay no US tax. I know NI wants tax per a letter I received from them responding to my question.)

Because of all this, my manager wants to switch me from a full-time employee to a contractor and they just pay me and send a 1099 form at the end of the year. I'm very frightened by this idea, as I can't put into my 401(k) anymore (and lose their 401(k) matching), and lose my US health insurance (I can probably stall them until I receive my biometric card, as I'm not UK-work-eligible until then anyway, as long as I don't change my address in payroll). He said he'll compensate me for the lost benefits, but I'm concerned about being paid by accounts payables (just another bill to get paid whenever) instead of payroll (legally required to have payroll money in their payroll bank account). Unlike what I read here and other places, he says that high-salsried employees are usually the first to go when a company is bought by another, and contractors are safe because they're considered not long-term expenses.

Short story (too late for that, sorry); I've been at the same place for 25 years, never had to job hunt, fully intend on retiring there, and am so scared of losing my employee status and being a permanent contractor, that I even started considering having my fiance immigrate to America instead, but I can handle being away from family better, and I really love England.
 
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