Expert US-UK Tax Services: Xerxes LLP, The Leading Authority for US Expats in the UK

For US expatriates living and working in the UK, understanding and managing tax obligations can be challenging. The US enforces a citizenship-based taxation system, meaning that even if an American citizen resides abroad, they are still required to file US tax returns. At the same time, the UK tax system operates on a residency-based model, leading to complex cross-border tax implications.

This is where Xerxes LLP excels. As a leading tax advisory firm, Xerxes LLP specialises in providing tax services for US expats to ensure full compliance with both IRS (Internal Revenue Service) and HMRC (His Majesty’s Revenue and Customs) regulations. Whether you need assistance with US-UK tax returns, FATCA compliance, FBAR filings, or double taxation relief, Xerxes LLP offers tailored solutions to navigate the complexities of cross-border taxation effectively.

Why US Expats in the UK Need Expert Tax Services

1. Dual Taxation: The US and UK Tax Requirements

Since the United States taxes its citizens and Green Card holders on worldwide income, expats must file a US tax return (Form 1040), regardless of where they live. However, UK tax residency laws also require certain individuals to file UK tax returns, creating potential double taxation issues.

2. IRS and HMRC Compliance Risks

Failure to comply with IRS and HMRC regulations can lead to severe penalties, including:
✔ Late filing penalties on US tax returns
✔ FATCA non-compliance fines
✔ Failure to file FBAR (Foreign Bank Account Report) penalties
✔ HMRC late tax payment fines

3. Complex Foreign Asset & Investment Reporting

US expatriates in the UK who hold foreign assets or earn passive income must comply with IRS reporting regulations, such as:
✔ FBAR (FinCEN Form 114) – Required for accounts exceeding $10,000
✔ FATCA (Form 8938) – Mandatory reporting of foreign assets
✔ PFIC (Passive Foreign Investment Company) taxation – Impacts UK-based investments like ISAs and mutual funds

These complexities make it essential for expats to work with an experienced tax service provider like Xerxes LLP to ensure compliance and reduce tax liabilities.

Comprehensive Tax Services for US Expats in the UK

1. US and UK Tax Return Preparation & Filing

Filing both a US tax return and a UK Self-Assessment tax return can be daunting. Xerxes LLP helps expats:
✔ File accurate Form 1040 with IRS-compliant deductions
✔ Prepare and submit UK Self-Assessment tax returns
✔ Avoid double taxation through tax treaty provisions

2. Foreign Earned Income Exclusion (FEIE) & Foreign Tax Credit (FTC)

To prevent double taxation, US expats can leverage:
✔ Foreign Earned Income Exclusion (FEIE) – Excludes up to $120,000+ of earned income (adjusted annually)
✔ Foreign Tax Credit (FTC) – Offsets UK tax payments against US tax liabilities

3. FATCA & FBAR Compliance for US Expats in the UK

US expatriates must comply with FATCA and FBAR regulations to report foreign financial accounts and assets. Xerxes LLP ensures timely and accurate reporting to avoid penalties.

4. Double Taxation Avoidance via US-UK Tax Treaty

By leveraging Xerxes LLP’s US-UK tax advice, expats can:
✔ Understand their UK tax residency status
✔ Minimise US and UK tax liabilities through treaty relief
✔ Navigate tax treaty provisions for pensions, capital gains, and social security

5. IRS Streamlined Foreign Offshore Procedure (For Late Filers)

Expats who have missed past tax filings may qualify for the IRS Streamlined Filing Compliance Procedures, which allow them to become compliant without penalties. Xerxes LLP provides expert assistance for late tax filers.

6. Tax Planning for UK Investments, Pensions & Property Ownership

Xerxes LLP helps US expats in the UK structure their finances tax-efficiently, including:
✔ UK pensions (SIPP, QROPS, and QNUPS)
✔ Capital gains tax strategies for property investors
✔ Inheritance tax planning for US-UK estates

Why Choose Xerxes LLP for US Expat Tax Services in the UK?

✅ Expat Tax Specialists – Experts in cross-border taxation
✅ IRS Enrolled Agents & UK Tax Advisors – Trusted international tax professionals
✅ Personalised Tax Solutions – Tailored tax strategies to optimise savings
✅ Full Compliance Assurance – Minimise tax liabilities and avoid penalties

With a proven track record, Xerxes LLP ensures that US expats in the UK remain compliant while maximising tax efficiency.

FAQs About US-UK Tax Services for Expats

1. Do US citizens living in the UK need to file a US tax return?

Yes. The US follows citizenship-based taxation, meaning all US citizens must file Form 1040 annually, regardless of residence.

2. How can US expats avoid double taxation?

Expats can claim the Foreign Earned Income Exclusion (FEIE), Foreign Tax Credit (FTC), and US-UK Tax Treaty benefits to reduce or eliminate double taxation.

3. What happens if I haven’t filed my US taxes while living in the UK?

Expats who are behind on their US tax filings may qualify for the IRS Streamlined Filing Compliance Procedures, which allow them to file late returns without penalties.

4. Are UK-based ISAs, SIPPs, and other investments taxable in the US?

Yes. Many UK tax-free investment accounts (such as ISAs) are still taxable in the US under IRS rules. Xerxes LLP helps expats navigate these challenges.

Helpful Resources for US Expats in the UK

🔗 IRS Expat Tax Guide
🔗 UK Self-Assessment Tax Information – HMRC
🔗 FBAR Filing Guide – FinCEN

Final Thoughts: Secure Your US-UK Tax Compliance with Xerxes LLP

Understanding and managing US and UK tax obligations as an expatriate can be overwhelming. From US tax returns and FATCA compliance to UK self-assessment and pension taxation, partnering with Xerxes LLP ensures complete compliance while maximizing tax-saving opportunities.

👉 Need expert US expat tax advice? Contact Xerxes LLP today!