If you’re a Green Card Holder or US citizen, and you’re considering moving to the UK, you might be wondering about your tax obligations. This guide will discuss your US and UK taxes in detail so you can avoid paying taxes twice.

Living in the UK has various benefits. Many people who come to visit from the US eventually start thinking about moving here. Around 166,000 US citizens live in the UK and love the English culture here.

For the best personal tax advisors in the UK, visit us at IBISS & CO. 

Do American Citizens Have to Pay Taxes in the US?

To answer this question, yes. Even when you are not living in the States, you must declare your foreign income and meet your tax obligations according to the IRS. US expats have to declare their income regardless of where they are living.

Under the Foreign Account Tax Compliance Act (FATCA), UK banks are obligated to report each US citizen’s financial activity in the UK to the IRS. Even if you haven’t been staying in the UK for too long— if you have earned any income, it should be reflected in your US taxes.

US Tax documents

Tax for US Citizens Living in the UK

If you’re living in the UK, you must also file your taxes with the UK government. All employees in the UK have tax obligations due to the Pay As You Earn (PAYE) system. You’re obligated to file taxes in the UK if your employment salary is more than £1,000,0 (including benefits) and your self-employment or investment income is more than £100,000.

You would also have to file taxes if your partner or you have claimed Child Credit and have income exceeding £50,000. Directors of a company or those with a non-UK income source also have to file taxes. However, if the company you’re a director of is a charity or non-profit where you receive no salary/benefits, you won’t have to pay taxes.

Who Is a Tax Resident in the UK?

You will be considered a resident in the UK for tax filing purposes if you have spent over 183 days in the country, you’re expected to stay here for two or more years, or you’ve spent 91 days on average (or more) in the UK in the last four years.

Still Confused? We Can Help!

Living in another country can complicate your taxes. IBISS & CO. can help. Whether you want to consult a tax accountant in London or Walsall, or simply want business or tax advice, reach out to us today. We have the best personal tax advisors in the UK who can assist you.

Reach out to us today.

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