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.
Top Tax Pitfalls for AmericansUS Tax Reformin late December 2017 Congress passed a comprehensive tax reform act. Find out more here.
OVDP endedEffective 28 September 2018 the IRS has closed the Offshore Voluntary Disclosure Program (OVDP). The Streamlined Filing Compliance Procedures remain available for those taxpayers meeting the criteria.
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 IRS Given Power to Revoke PassportsLate in 2015 President Obama signed into law the "FAST Act". This includes a provision adding section 7345 to the Internal Revenue Code. The law says that the State Department can revoke, deny or limit passports for anyone the IRS certifies as having a seriously delinquent tax debt in excess of $50,000.
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 |