2026 US Tax Filing Season
The filing deadline for 2025 returns is 15 April 2026 for most people. However, this is automatically extended to 15 June for those resident outside the US and the deadline can be further extended to 15 October. The deadline for filing the FBAR is automatically extended to 15 October. Payment is due by 15 April even if a filing extension has been granted.
US and UK Tax
Dealing with the tax system of one country can be frustrating enough, but when you have to deal with the tax systems of two countries it can become a real challenge!
The issues are often particularly acute for US nationals who move abroad because of their ongoing obligation to file US tax returns and their continuing liability for US taxation on their worldwide income.
The problems are exacerbated by the fact that the vast majority of tax advisers fully understand their home country’s system but generally have only a hazy understanding of overseas tax systems. Unless you understand how both systems work, any tax planning you do to improve your position in one country may just make it worse in the other.
That is where we come in. Whether you are an individual or a business with a full understanding of both the UK and US tax systems, we are ideally placed to advise you not only on how to meet the obligations of the IRS and HM Revenue & Customs, but also on how to manage your tax affairs in order to minimise your tax bills and optimize your financial position.
The issues are often particularly acute for US nationals who move abroad because of their ongoing obligation to file US tax returns and their continuing liability for US taxation on their worldwide income.
The problems are exacerbated by the fact that the vast majority of tax advisers fully understand their home country’s system but generally have only a hazy understanding of overseas tax systems. Unless you understand how both systems work, any tax planning you do to improve your position in one country may just make it worse in the other.
That is where we come in. Whether you are an individual or a business with a full understanding of both the UK and US tax systems, we are ideally placed to advise you not only on how to meet the obligations of the IRS and HM Revenue & Customs, but also on how to manage your tax affairs in order to minimise your tax bills and optimize your financial position.
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Making Tax Digital (MTD)
From the start of the 2026/27 UK tax year HMRC will require sole traders and landlords to make quarterly filings reporting their income and expenses. Initially this will be for those with qualifying income of over £50,000 but the threshold will reduce to £30,000 and then to £20,000 for the 2028/29 tax year. Note that this will inlcude any rental income form overseas properties.
Top Tax Pitfalls for AmericansForeign Income and Gains
From the 2025/26 Uk tax year onwards the UK has abolished its previously remittance basis of taxation which allowed those domiciled in the UK to exclude income arising outside the UK to be excluded from UK taxaion as long as it was not remtted to the UK. Instead this has been replaced by a system that allows many of those who move to the UK to exclude their eligble foreign income and gains from UK tax for their first 4 years of residence in the UK.
Contracting in the UKAmericans setting up their own Limited Company in the UK need to be aware of the US tax consequences and additional tax reporting requirements which include possible stiff penalties for failure to comply. The recent US tax reform legislation has also had a major impact upon the taxation of foreign corporations owned by Americans.
Find out about: Contracting in the UK Giving Up US citizenship or GreencardIf you are thinking of giving up your you Us citizenship or Greencard you should understand the process you need to follow to avoid tax problems with the IRS and what the tax implications will be. Find Out About: expatriation Do you need to file a US tax return? An overview of the UK tax system Other filing requirements Passive Foreign Investment Companies (PFIC) |
Non Filers: Bringing Your US Taxes Up To DateMany Americans overseas find out that they should have been filing US tax returns. In most cases they should be able to bring themselves back up to date without incurring any penalties.
Find out more about bringing your US tax affairs up to date here
Problems With MortgagesRepaying a Sterling mortgage can give rise to unexpected tax liabilities
Reporting non-US financial AssetsAmericans who hold financial assets outside the United States should be aware that they may need any to file form 8938 "Statement of Foreign Financial Assets".
Americans (and Green Card holders) living outside the US will need to file if their specified financial assets at the end of the tax year exceeded $200,000 if you are single or married filing separately or $400,000 if you are married filing jointly, OR if at any time during the US tax year, exceeded $300,000 for single or married filing separately, or over $600,000 for married filing jointly. Find out more here |