The UK is a popular destination for Americans working or living abroad. However, the tax regime is complex and care should be taken to ensure that you do not fall foul of either the UK or US tax rules.
Our team are experienced in helping US expatriates in the UK, by providing advice and completing their UK tax filings.
Individuals we support include, company directors, senior executives and shareholders, property owners, investors and small business owners.
Please note: Our team provides a UK tax service for US expatriates living in the UK. If you also need US tax filing we can introduce you to US firms who we work closely with through our international alliance. Of course, if you already have a tax advisor in the US we are equally happy to liaise with them.
What are my US and UK tax responsibilities while I live/work in the UK?
US tax responsibilities
If, while you are living in the UK, you remain a citizen or permanent resident of the United States, then you will need to file a US tax return based on your worldwide income with the US federal government each year. In addition to the income tax return, you may be required to file further informational returns based on assets held outside the US.
To avoid double taxation, the US government does offer a number of special provisions and exclusions, which if used correctly, can minimise or in some cases eliminate the tax due. We can introduce clients to tax advisors based in the US who can assist with their US tax filing needs.
UK tax responsibilities
– Through PAYE as an employee – If you will be working as an employee, you will be subject to Pay As You Earn (PAYE) tax, which will also apply if you are being paid from outside of the UK.
Following receipt of your Starter Declaration, HMRC will issue a tax code to you and a copy to your employer which will then be used to determine the total amount of tax to withhold each pay period.
– Through a self-assessment tax return – If you meet any of the following criteria at any point during the tax year, you will be required to complete a self-assessment tax return. We can prepare your UK tax return on your behalf and provide advice with regards to tax planning to minimise your UK tax liability.
- Are you claiming non-resident or non-domicile status?
- Are you self-employed, a company director or a partner in a business?
- Did you receive income over £100,000?
- Did you receive £10,000 or more from taxed savings and investments?
- Did you receive more than £2,500 in untaxed income?
- Did you receive income from letting out property?
- Did you receive foreign income liable to UK tax?
- Are you an employee claiming expenses or professional subscriptions of £2,500 or more?
Our tax services for US expats living in the UK
UK tax services – delivered by Rouse Partners
- Completing your self-assessment tax return
- Tax planning advice
- Advising on your UK residency and non-domicile status
- Performing all tax calculations and checking your tax codes
- Dealing with HMRC on your behalf
- Advising on trusts, property or inheritance tax planning
Carried out by our award-winning UK-based team
Based just outside West London, we are easily accessible by train or car from Central London and we offer an excellent value for money service. Our dedicated tax team are experienced in all areas of tax planning for individuals, families and businesses. So, whether planning your UK tax affairs to utilise reliefs and allowances, or completing your annual UK tax compliance requirements, we can support you.
US services – delivered by our US counterparts
- Filing of US income tax returns
- Filing of US information returns
- Analysis of US residency status
- Analysis of treaty benefits
- Optimisation of foreign tax credits
- Social Security Coverage certificates
Carried out by tax advisors in the US
As members of Praxity, an award-winning international alliance of independent accounting firms, we can connect you with US firms who can carry out your requirements locally, providing local regulatory insight, tax assurance and consulting services. Like Rouse Partners, each US firm is successful in their region and highly rated by peers. We have a close working relationship with these US firms, which means that you will benefit from a high quality, seamless tax service at home and abroad.