Are you A US Expat Living Abroad & Haven’t Filed Your Taxes?

You might be living overseas and concerned that you haven’t filed US taxes. If you are an US expat, you might consider getting into tax compliance before it is too late. Our ‘US Tax Return London and UK’ product is a bespoke service designed to tackle any and all possibilities on your behalf. Here are some important points for you to understand about US tax returns.

• – Filing US taxes is required even when working and earning an income overseas.
• – Even if you earn an income overseas, you must file your US taxes.
• – Not paying US taxes could cause problems when renewing your passport.
• – It is impossible to predict what the US Government will do in the near future, particularly with regard to immigration.

If you use the ‘Foreign Earned Income Exclusion’ and the ‘Foreign Tax Credit’ together, you may not owe as much US tax as you think you do.

Self-employed people and people who live in countries not covered by the ‘Totalization Agreement’ may owe taxes that fund their payments to Social Security.

It is difficult to determine how many tax returns are needed to be filed in terms of previous years, however, people who file tax returns for the previous six years seemingly satisfy the IRS system. However, some people try to file less than six and the response from the IRS is not always favourable.

Here is some motivation to reach out to us and start the process; the pandemic stimulus payments will be provided to you if you file 2020 2021 returns (if you qualify). Contact us here. Xerxes Associates LLP is a leading firm of tax advisers qualified in both the United States (IRS) and the United Kingdom (HMRC) tax procedures.

There is nothing more complicated, confusing, time-consuming, or even a bit frightening than filing a tax return. With our help, Americans and Brits can understand US and UK tax easily. No matter what form you’re trying to complete, what questions you’re asking or how much tax you’re trying to save, we can help you.

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.

There are a variety of expat services available however, Xerxes Associates LLP offers you a premium and efficient service which has made us the number one choice for U.S. expats living in the UK.

In order to meet your specific needs, Xerxes Associates LLP offers US Expats living in the UK a range of reliable services bespoke to your personal taxation requirements. There is no one better equipped to handle complex expat tax issues than the Xerxes Associates LLP team.

U.S. Tax Compliance Services

A U.S. citizen or U.S. green card holder must file a U.S. tax return annually to report their worldwide income, regardless of whether they owe any tax. It’s still necessary to file a U.S. tax return even if you earned all of your income abroad and paid taxes in your country of residence.

There are a number of exclusions and credits available to you and you can minimise your U.S. federal tax liability by optimising your tax return. Xerxes Associates LLP can help you achieve maximum tax optimisation and efficiency.

Xerxes Associates LLP provide the following range of tax preparation services:

– Completion of individual Federal US resident and non-resident tax returns (Form 1040 and Form 1040NR).

– Streamlined filing for delinquent filers.

– Preparing expatriation returns.

– Preparing and submitting Foreign Bank Account Reports (FBAR) forms.

– Completion of State Tax Returns.

– Planning for moving to or from the US.

– Planning of UK/US profit extraction from companies including the resolution of both the Repatriation Tax and the GILTI Tax.

– Claims for Foreign Earned Income deductions.

– Claims for Foreign Tax Credits.

– Crypto Tax Advice.

Our dual-qualified team of tax advisers can look after your personal tax affairs as well as those of your business. We have been helping our clients manage their tax affairs for over 10 years now and can assist you with all associated complexities.

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.

No matter where they live, U.S. citizens and residents pay taxes on their worldwide income. Therefore, you must also report any income you report on your UK return on your US return. Filing requirements in the US are determined by your filing status and your income amount.

Finding conformity between your UK and US tax year

In the UK, the tax year runs from 6th April to 5th April, so submitting your US tax returns may be difficult as the IRS expects to see your earnings from January 1 to December 31.

This issue can be addressed in many ways, but we find the most accurate method is to use the following formula:

Take the amount of your P60 this year – The YTD amount from your PAYE statement from the previous year + The YTD amount from PAYE statement of this year = The amount current year amount.

In addition to calculating the amount of money you earned last year, this calculation can also be used to calculate the amount of money you paid to HMRC during the year.

Avoid paying taxes twice

There should never be a double taxation of the same income. Americans in the UK typically pay their income tax to the UK first, then file their US tax returns. Foreign Tax Credits are available in both the United Kingdom and the United States, thus allowing for a smaller tax due amount on foreign-sourced income.

Totalization Agreement

The Totalization Agreement came into effect in February 1984. As a consequence, US citizens living in the UK are not subject to double social security payments or taxation.

Exemption from foreign earned income – Form 2555

If US expats living in the UK meet either the Bona Fide Residence Test or the Physical Presence Test, they may qualify for a reduction or, in some cases, pay zero US tax.

Report of Foreign Bank and Financial Accounts – FBAR

Every year, Americans who have accounts outside the United States with a balance of at least $10,000 must file a FBAR, or FinCEN Form 114, by October 15. Bank, investment, and retirement accounts should be included in the report, converted into US dollars. The Form 8938 is required for taxpayers with UK accounts worth more than $200,000.

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.

A PAYE system is used by most UK employers to withhold taxes from employees’ paychecks.

You will need to file a UK tax return if ‘any’ of the following applies to you;

• – Your income is exceeding £100,000 including any benefits
• – Your investment income exceeds £10,000 per year
• – Your self-employment income is £1000
• – You are the director of a company (unless you receive no salary and/or benefits)
• – You and your partner have income exceeding £50,000 whilst claiming Child Credit
• – You have income from a source external to the UK

A form should be sent to you if you are required to file by Her Majesty’s Revenue and Customs (HMRC). HMRC offers a tool that can be used for checking your tax filing obligations. In addition, you may be able to receive deductions from HMRC by filing a tax return.  Viable deductions  include donations to charities, private pension contributions and work related expenses over £2,500.

HMRC requires you to register online if you have not received a tax form from them. Avoid late filing penalties by doing this as early as possible.

The types of income you should report will depend on your residency status. The only income you need to report if you are a non-resident is UK-sourced. UK residents whose permanent home, or “domicile,” is outside the UK and who are not considered “ordinary residents” are subject to special rules.

Residency status is determined by how long you intend to stay in the UK and how many days you spend there physically. Generally, if you live in the UK for at least two years, spend more than 183 days here or average more than 91 days there over the past four years, you are considered a resident for tax purposes.

It is common for US expats in the UK to be considered non-UK domiciled. UK residence and domicile regulations are constantly being updated by HMRC. If you want to be clear about your domicile status while living in the UK, we strongly encourage you to speak with a UK & US tax experts sooner rather than later.

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.

Xerxes Associates LLP have been preparing US taxes for Americans living in the UK for over 20 years. We are experts in all aspects of US tax procedures and we offer a professional, responsive and personalised service to all US and UK expats.

Every US citizen including Green Card holders (equivalent to a permanent stay visa) is required to file a US tax return every year. In addition to preparing individual US federal and state tax returns, Xerxes Associates LLP can also consider the tax efficiency of your funds, assets, savings and investments.

The ability for Xerxes Associates LLP to handle both UK and US taxes is important to our clients who have lived in the UK from a few days to a number of years. We are able to advise individuals on all matters related to taxable income from the US, UK and other parts of the world. Click here to view the full list of our packages and prices.

Tax filing requirements in the US do not stop just because you no longer earn income in the country. Citizens of the US are taxable on their worldwide income if they hold US citizenship. A US tax return must still be filed if you have an employment contract in the UK, but do not earn US income.

No matter how complex your US tax return is, Xerxes Associates LLP can assist you. We can even help if you have not filed for many years and want to get back on track. By taking advantage of the The Streamlined Tax Amnesty program, we can help chisel a route which is the best way for US citizenship holders in the UK to catch up on their US taxes.

Once you earn more than $12,400 USD as a single filer, you have to file a tax return. There is a threshold of $24,800 for married joint filers, and an additional threshold of $18,650 USD for heads of household. When your income exceeds the filing threshold, you’ll need to file a US 1040 Federal Tax return for that year, regardless of the currency.

Married couples filing separately need only earn more than $5 USD to file a US tax return. You must file a US tax return if you are married to a non-American and your worldwide income exceeds $5 USD. You still need to file taxes even if you do not work or earn an income.

You must file a US tax return if you are self-employed, or if your self-employment income exceeds $400 USD per year (in any currency from any country).

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.

Are you looking for US tax accountants and advisors in London or the UK?  View our fees and packages for UK and US tax return services.

Who Can Provide US Expats With Expat Accountant Service And Expat Tax Assistance?

Xerxes Associates LLP are expert specialist US & UK tax accountants and advisers based in London with over 10 years of valuable experience. As US and UK tax accountants, we offer a professional, responsive and personalised service to all US and UK expats.

What Is The Difference Between A Tax Adviser UK, Tax Consultant London & Tax Accountant London?

Essentially they are the same in respect of the core preparation service they all provide. As UK & US Tax Advisers and Accountants, Xerxes Associates LLP offer more than just the basic advisory and tax return preparation services. We also offer all of the required key services to expats in both the United States and United Kingdom.

What is an Expat Tax Advisor?

Living and working outside of your home country? Then you will probably need to submit an expat tax return. The easiest way to do so is to instruct a company which employs expat tax professionals like Xerxes Associates LLP.  If you live and work in the UK then you need to search for expat tax advice UK, for locally based specialists like ourselves to ensure the smooth processing of your tax returns.

How To File US Taxes And Tax Return From The UK?

It’s simple to file U.S. taxes in the U.K. with Xerxes Associates LLP. Our expat tax advisors are here to help. Here’s how to file your U.S. expat taxes.

• Head on over to our contact page and reach out to us. Alternatively, request us to call you by requesting a call back.
• Once we have confirmed which service package suits you best, we shall start to prepare your return.
• We file your return with the IRS and HMRC or as required.
• You can sit back knowing your taxes are taken care of.

As Tax Accountants London & Providers of Tax Advice London, Do You Offer Your Services To Expats Living Elsewhere?

We offer our services to all US and UK expats living anywhere including the whole of the UK, USA and other parts of the world.

What Is UK Expat Tax Advice?

You can still be liable to pay UK taxes even if you are not a UK resident. If you’re leaving the UK permanently or going to work abroad for at least one full tax year, you must inform HMRC. We can help with all your local and expat tax obligations and submissions.

Can UK Tax Specialists Also Help With UK US Dual Citizenship Taxes?

Yes! Taxes are imposed by the United States on its citizens regardless of where they live and how they earn their income. If you are a dual citizen living abroad, you might owe taxes to both the United States and the country where your income is earned. Contact us for more information.

What Are USA To UK Tax And Financial Services

These are core elements of the services Xerxes Associates LLP offer, including Tax Advice

Tax Planning and Tax Compliance Services ( i.e. US tax returns, UK tax returns and forms preparation).

Are Tax Advisors UK Or Those Who Offer Tax Return Services UK Regulated? 

As IRS Certified Acceptance Agents we are authorised to certify the required identification documentation for the purposes of applying for a US Individual Tax Identification Number (ITIN).

Do Xerxes Associates LLP Offer International Tax Advice For Individuals In The UK?

We have a team of experts and consultants that have experience in advising individuals on international tax matters. We are dedicated to providing our clients with custom-tailored services. No matter what your priorities and aspirations in business and life are, we will provide you with expert advice from local specialists. Due to the unique nature of your needs, our solutions are customised specifically for you.

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.

Are you looking for US tax accountants and advisors in London or the UK?  View our fees and packages for UK and US tax return services.

What Is A FBAR And Who Needs To File One?

An FBAR form must be filed by all U.S. citizens, residents, corporations, partnerships, limited liability companies, trusts, and estates. The purpose of an FBAR is to notify a financial interest in a bank account including any type of authority over a financial account which is located outside the United States i.e. in the UK or any other country. Further information will be required before submitting the FBAR US tax form.

What Is Meant By PFIC Or Passive Foreign Investment Company?

PFIC (passive foreign investment company) is a corporation based overseas that exhibits either one of following two characteristics in regards to income or assets:

• An organisation’s gross income must be at least 75% passive, meaning derived from investments or other sources apart from regular business operations.
• Investments comprise at least half of the company’s assets and produce income through earned interest, dividends, or capital gains.

What Is The PFIC Tax Form 8621?

A shareholder of a passive foreign investment company or a qualified electing fund needs to file Form 8621 – please see above.

What Does Country Of Domicile Mean?

Domicile refers to the place where you maintain a permanent residence. In other words, your country of domicile is where you permanently reside. When you intend to remain in this place indefinitely, it becomes your domicile and you become its domiciliary.

What Is A US Expat?

American citizens who move and plan to stay in another country are called expats.

What Is The Equivalent Of The IRS In England?

The British equivalent of the Internal Revenue Service (IRS) is the HM Revenue & Customs (HMRC). The HMRC ensures that the taxation system is implemented and enforced effectively.

HMRC Or Her Majesty’s Revenue & Collections Is The Authority That Handles Tax Returns For The United Kingdom.

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.

Are you looking for US tax accountants and advisors in London or the UK?  View our fees and packages for UK and US tax return services.

The IRS sends millions of notices to taxpayers every year. Reasons for sending these letters vary. The following list contains ten simple steps you should take when this notice arrives.

1. It shouldn’t be ignored. The IRS mostly sends letters and notices in connection with federal tax returns. The letter or notice will tell you why the contact has been made and give you instructions on how to respond.

2. Don’t panic! It is usually sufficient to respond to the notice in a simple manner.

3. Read the entire document carefully and completely. IRS letters usually contain specific instructions and information about what you need to do to resolve a particular question or problem.

4. Make sure you have filed your taxes. The purpose of these letters is typically to inform the taxpayer of a change or correction to their tax return. Compare the information in the letter with the tax return.

5. Don’t reply unless it’s absolutely necessary. This type of notice is usually informational and does not need a response. If you have to respond, you will be told exactly what to do in the notice. Do not reply unless the notice asks you to or if payment is required.

6. In the event that you need to respond, do so immediately. Despite your disagreement, you should reply. Write a response letter that explains why you disagree, and send it to the address listed in the notice. If the IRS needs more information or copies of documents to consider your position, make sure to include it. You will then need to wait a minimum of 30 days to receive an IRS response.

A date on the notice usually indicates one of three things:

– To preserve the right of appeal for the taxpayer;

– To ensure that the tax return is processed in a timely manner;

– Minimise penalties and interest;

7. Call only when necessary. The IRS usually does not need to be contacted in most cases. Before you call, ensure that you have the relevant tax return and notice at hand.

8. Your IRS letter may have arrived late. Whenever you receive a notice with a due date and the due date has passed or is too close, you should contact the IRS immediately to inform them of the late receipt and request an extension of time to respond. For overseas taxpayers with unreliable mail services, this is of particular importance. A one-month extension from the IRS is usually given right away, but you must contact the IRS to get one.

9. Please keep the notice. Make sure to keep a copy of all IRS notices and letters.

10. Need help from a professional? If you need professional tax assistance, notify the IRS that you have hired an accounting firm to assist you, and you would like time to allow your representatives to assess and respond on your behalf.

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.

Are you looking for US tax accountants and advisors in London or the UK?  View our fees and packages for UK and US tax return services.

What are the most common reasons for not filing an IRS Tax extension?

– IRS may raise a red flag when you extend, increasing your audit risk
– I’m always late filing my tax returns
– I may be late in October as well if I file an extension.
– Everything I need for my taxes is in order, I just need to complete the tax forms.
– If I won’t use the extension, why file it?

No matter what the reasons are, they don’t matter, your tax return must either be filed on time or an extension must be sought.

Extending a deadline will postpone both the filing and payment deadlines. This is often misunderstood. The extensions will only extend the filing deadline, not the payment deadline.

The tax deadline for US citizens and residents residing inside the United States is April 15th, 2022. Filing a Form 4868, if you are unable to file by the deadline, will extend your tax return for six months until October 15th, 2022. To avoid late payment penalties, taxes must be paid by April 15th.

US Expats living in the UK have until June 15th, 2022, to file their taxes. US citizens living abroad receive an automatic extension of their tax deadline by two months. Filing Form 4868 can extend your deadline to October 15th, 2022, if you are unable to file your tax return by June 15th. To avoid any late-payment penalties, tax dues should be paid by April 15th.

It’s important to keep on top of the ever-changing tax laws, requirements and obligations, especially if you’re an expat who lives abroad in London, UK or elsewhere. Our experience allows us to provide effective solutions for almost any situation. We continue to investigate ways to help reduce your tax burden because at the end of the day, it all comes down to one thing; you’re entitled to keep what is yours! With our unique expertise in U.S. expat taxes, Xerxes Associates LLP shall ensure your interests are served correctly.

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.

Is it necessary to file a 1040 if my income is below the Foreign Earned Income Exemption (FEIE)?

If the total income of a US citizen exceeds the standard deduction and exemption, you are required to file a US tax return. It is likely that there will be no tax due if the total income from foreign earnings falls under the FEIE limit, but a tax return needs to be filed in order to report the income and claim the exemption, since the relief is not automatic.

Even if all of my accounts are under the threshold of $10,000 (£7962.20), do I need to file an FBAR?

Possibly. If the total balance of all your non-US bank accounts combined is over $10,000 (£7962.20), an FBAR (Foreign Bank Account Reporting) is required. For example, if you have three accounts, each with a maximum balance of $4,000 (£3184.88), you must file. Whether or not this figure relates to the same funds that have been transferred between your accounts does not matter. All foreign bank accounts must be included in the FBAR, not just those that exceed the $10,000 (£7962.20) threshold.

My spouse is not a citizen of the United States, so does she need to file?

Not always. If they receive income from a US source, a spouse who is not a US resident has to file a US tax return. Being married to a US citizen does not obligate you to file US tax returns. A spouse in the US will simply need to file a ‘married filing separate’ tax return stating that their spouse is a non-resident alien who is not required to file taxes

What if I have missed years of filing my US tax return?

It’s never too late to file for past years. If US taxes are due, interest and penalties will continue to accrue until payment/submission, so it is best to resolve your affairs as soon as possible.

Exactly what is FATCA?

In the UK, many US citizens are being sent rather intimidating FACTA compliance packs from their UK (and other non-US) banks inquiring whether they have any connection to the US. FATCA regulations have brought about this.

In the US, a law called FATCA requires all banks and financial institutions to report to the IRS information about overseas bank accounts of customers who are US citizens or residents. The goal is to prevent tax evasion through offshore accounts.

US citizens who are behind on their US tax filing and foreign bank account reporting may find this very concerning. In addition to being a confusing and long form, the compliance packs sent by banks are also reported to the IRS who will be notified about accounts that are allegedly not disclosed.

The law is meant to go after very rich tax evaders rather than the average US taxpayer, but you should get caught up with US tax compliance sooner rather than later.

What is the cost to get my US taxes up to date?

We are very transparent about our costs and packages. Click here to view our current prices.

Xerxes Associates LLP work closely with US and UK expats from all different backgrounds, circumstances and occupations as well as high-net worth individuals in order to help them through the complexities of US and UK tax compliance requirements (tax imposed on expatriates). If you have a query or would like a friendly no obligation chat about your requirements then please get in touch and we shall be happy to assist you.