US Expats In London & IRS Compliance
As an expat living in the UK, you might be concerned that you have not filed your US taxes. The following reasons may encourage you to make tax compliance a priority.
– You must file US taxes even when earning income overseas.
– If you owe US taxes, it could cause problems for your passport renewal.
– The US Government has been unpredictable lately, particularly in matters of immigration, which adds to the uncertainty.
It is a common mistake for U.S. citizens living abroad including London to forget to file their taxes. Since the passing of the FAST Act in 2015, many US expats living in London and elsewhere have ongoing concerns about looming tax issues and the possibility of having their passport renewal compromised.
Xerxes Associates LLP has over 10 years of valuable experience in helping U.S. citizens living in the United Kingdom to get back into compliance with the IRS (and HMRC). To resolve your back tax issues, here are a few steps you can take.
– To establish compliance, note when you last filed your tax and determine the years you need to file to satisfy the “system. Six years is considered compliant.
– Check to see if you qualify for the Foreign Earned Income Exemption (FEIE) and Foreign Tax Credit (FTC).
– You may have to pay social security taxes if you are a self-employed employee working in the United Kingdom unless you are enrolled with HMRC in the UK and therefore could be exempt from paying the U.S. Social Security taxes.
– You must report any foreign bank account money held in excess of $10k with a Foreign Bank Account Report (FBAR).
Are you concerned about large amounts of owed taxes?
The good news is that livable payment agreements can be reached or settlements should be available to you.
Xerxes Associates LLP are expert and specialist US & UK tax 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.
Take Advantage of our free introductory phone consultation – call us today and speak with a tax professional on the phone to discuss your situation before having us work on your case.
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.
