Tax Services for US Expats Living and Working in the UK

Xerxes LLP: The Leading Provider of Tax Services for US Expats Living and Working in the UK

For US expatriates residing in the UK, navigating the complexities of US tax compliance while adhering to UK tax regulations can be a daunting challenge. With the IRS (Internal Revenue Service) requiring US citizens to file taxes regardless of their residence, understanding the dual tax obligations and avoiding penalties is crucial.

This is where Xerxes LLP stands out as a trusted authority. Specialising in tax services for US expats in the UK, Xerxes LLP provides expert guidance on tax planning, compliance, and cross-border tax optimisation, ensuring expats remain compliant while maximising tax efficiency.

Why US Expats in the UK Need Specialised Tax Services

Unlike many other countries, the United States follows a citizenship-based taxation system, meaning US citizens and Green Card holders must file US tax returns even when residing abroad. Additionally, they must comply with the UK tax system, making the need for specialised expat tax services essential.

Without proper tax planning and compliance, expats may face:

  • Double taxation (paying tax in both the US and the UK)
  • Hefty IRS penalties for non-compliance
  • Complex tax reporting obligations such as FBAR (Foreign Bank Account Report) and FATCA (Foreign Account Tax Compliance Act)

As a leading US expat tax service provider, Xerxes LLP ensures that American expatriates meet their legal tax obligations while taking full advantage of the tax benefits and reliefs available to them.

Comprehensive Tax Services for US Expats in the UK

1. US Tax Return Preparation and Filing

Filing a US tax return from the UK is mandatory for most expatriates. Xerxes LLP’s tax specialists ensure that expats:

✔ File their Form 1040 (US Individual Tax Return) correctly
✔ Claim eligible deductions such as the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC)
✔ Avoid IRS penalties for late or incorrect filing

2. UK Tax Compliance for US Expats

Living and working in the UK means being subject to HM Revenue & Customs (HMRC) regulations. Xerxes LLP helps expats:

✔ Determine their UK tax residency status under the Statutory Residence Test (SRT)
✔ File their UK Self-Assessment Tax Return if required
✔ Understand UK tax relief options to minimise tax liability

3. Foreign Bank Account Reporting (FBAR) & FATCA Compliance

The US government requires expatriates to disclose foreign financial accounts exceeding $10,000 through the FBAR (FinCEN Form 114) and to report foreign assets via FATCA (Form 8938).

Xerxes LLP ensures full compliance with these regulations, helping expats avoid severe penalties.

4. Double Taxation Avoidance Strategies

Through the US-UK Tax Treaty, expats can avoid double taxation by utilising:

  • Foreign Earned Income Exclusion (FEIE) – Excluding up to $120,000+ of foreign-earned income (adjusted annually)
  • Foreign Tax Credit (FTC) – Claiming credits for UK taxes paid
  • Tax Treaty Benefits – Preventing unnecessary taxation on pensions, social security, and investments

5. IRS Amnesty Programs for Late Filers

For US expats who have fallen behind on their US tax filings, Xerxes LLP assists with:

The IRS Streamlined Foreign Offshore Procedure – A penalty-free program for expats who unintentionally failed to file their US taxes
Delinquent FBAR Submission Procedures – Avoiding hefty fines for missed FBAR filings

6. Tax Planning for US Expats with UK Investments & Pensions

Expats often struggle with tax-efficient strategies for:

  • UK pensions (SIPPs, QROPS, and QNUPS)
  • Property investments and capital gains tax implications
  • Inheritance and estate tax planning

With expert insight, Xerxes LLP provides tailored solutions to help expats protect their wealth.

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

Expat Tax Specialists: A dedicated team with deep knowledge of US-UK tax laws
IRS Enrolled Agents & UK Tax Advisors: Qualified experts in cross-border taxation
Personalised Support: Tailored tax strategies to maximise savings
Full Compliance Assurance: Avoid penalties and unnecessary tax burdens

By working with Xerxes LLP, US expats in the UK can rest assured that their tax affairs are in expert hands.

FAQs About US Expat Taxes in the UK

1. Do US expats need to file both US and UK tax returns?

Yes. US citizens and Green Card holders must file a US tax return regardless of where they live. In the UK, tax filing depends on residency status and income sources.

2. How can US expats avoid double taxation?

By utilising the Foreign Earned Income Exclusion (FEIE), Foreign Tax Credit (FTC), and US-UK Tax Treaty benefits, expats can minimise or eliminate double taxation.

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

Expats may qualify for the IRS Streamlined Filing Compliance Procedures, allowing them to become compliant without penalties.

Helpful Resources for US Expats in the UK

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

Final Thoughts: Secure Your Tax Compliance with Xerxes LLP

Navigating the complexities of US and UK tax laws as an expat requires expert guidance. Whether you’re filing your US tax return, managing UK tax obligations, or ensuring compliance with FBAR & FATCA, partnering with Xerxes LLP will save you time, stress, and unnecessary tax liabilities.

With a team of IRS Enrolled Agents and UK tax professionals, Xerxes LLP is the go-to tax firm for US expatriates in the UK, ensuring compliance while optimising tax efficiency.

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