Here are your US and UK tax responsibilities while you live and work in the UK

Here are your US and UK tax responsibilities while you live and work in the UK

US tax responsibilities

If you remain a citizen or permanent resident of the United States while living in the UK, then you must file an annual US tax return with the US federal government based on your worldwide income. If you have assets outside the US, you may be required to file additional informational returns.

Several special provisions and exclusions provided by the US government are available to prevent double taxation, which, when used properly, may minimise or eliminate the amount of tax due. Click here to learn more about US tax responsibilities 

UK tax responsibilities

PAYE as an employee – As an employee, you are subject to Pay As You Earn (PAYE) tax, which will also apply if you are being paid from outside the UK.

As part of the monthly online payroll reporting, if you are a moving employee to the UK, your employer will provide Her Majesty’s Revenue and Customs (HMRC) with a “Starter Declaration.” This will provide certain personal information details such as your start date of employment, home address, hour of work and more.

As soon as HMRC receives a Starter Declaration, it will issue you a tax code. Your employer will also receive a copy of the code, which will be used to determine the amount of tax to be withheld.

Self-assessment tax return – You will be required to complete a self-assessment tax return if you meet any of the following criteria during the tax year. If you would like us to prepare your UK tax return on your behalf and provide advice regarding tax planning to minimize your UK tax obligations, please contact us.

  • – Claiming non-resident or non-domicile status?
  • – Are you self-employed, a company director or a partner in a business?
  • – Have you received income over £100,000?
  • – Did you receive £10,000 or more from taxed savings and investments?
  • – Have you received more than £2,500 in untaxed income?
  • – Are you or have you received income from letting out a property?
  • – Have you received foreign income liable to UK tax?

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.