The Basics of the UK Tax System for US Citizens Working in the United Kingdom

The Basics of the UK Tax System for US Citizens Working in the United Kingdom

The UK tax system is known as Her Majesty’s Revenue & Customs or HMRC for short. HMRC operates as the Government tax collection agency for the United Kingdom. HMRC also helps regulate governmental policies such as national minimum wage and state support and welfare.

Key points to remember;

  • – The UK tax year falls between April 6th – April 5th.
  • – Your electronic UK tax return is required to be filed by the following January 31st.
  • – Your paper tax return must be completed and filed by the following October 31st.
  • – Automatic extensions are not granted and late submissions are assessed by HMRC on an individual basis but only if you meet certain conditions.


Like the US tax system, your tax is levied as you earn your salary, wages, business income, and investment income. Pay As You Earn (PAYE) taxes are the same as Payroll and include the following;

  • – Your income tax.
  • – National Insurance contributions.


The tax rate(s) is not set and is subject to change in accordance to your total earnings.

Married Couples – If you are married then you could be in a position to take advantage of the marriage allowance however, married couples are not able to file joint tax returns and are required to file individually.

Xerxes Associates LLP are specialist tax advisers for US and UK expats. If you have any queries or want to know more about how we can help you file your Tax Returns with efficiency, please use the contact details above or request a callback and we shall be happy to contact you at a more suitable time.