U.S. Tax Filing Support for Americans Living in the UK
Living and paying tax in the UK does not necessarily bring your U.S. filing obligations to an end.
ATA helps U.S. citizens living in Britain organise the UK income, tax and financial information needed for U.S. reporting, while coordinating the filing position where specialist U.S. tax input is required.
U.S. Tax Filing for Americans Living in the UK Starts With the Whole Picture
US Tax Returns UK obligations can continue even when you live and pay tax in Britain. U.S. citizens and Green Card holders may still need to report worldwide income and certain foreign financial accounts. US Tax Filing for Americans Living in the UK can remain necessary even when you are resident and paying tax in Britain. U.S. citizens abroad may still have federal income tax and foreign financial reporting obligations.
UK Employment Income
Salary taxed through PAYE can still form part of the U.S. worldwide-income reporting picture.
UK Self-Employment
Business or freelance income can require additional analysis beyond simply converting the UK tax return into dollars.
UK Bank & Investment Accounts
Foreign financial accounts can create separate U.S. reporting requirements in addition to the income tax return.
UK Property Income
UK rental income and property transactions may need different calculations for U.S. reporting purposes.
UK Investments & Pensions
Investments, pensions and other UK financial arrangements can have U.S.-specific reporting consequences.
Previous Returns Missing
Someone who has lived abroad for years without filing may need a different approach from a taxpayer who is fully up to date.
Turning UK Records Into a Clear U.S. Filing Pack
The UK and U.S. tax systems do not always classify or calculate the same item in the same way. Good filing starts with organised, reconciled information.
Your UK Records
P60, P45 and employment income
Self Assessment and supplementary schedules
Interest and account information
Investments, dividends and disposals
Rental income and property records
U.S. Filing Position
Federal individual income tax return
Foreign Tax Credit considerations
Foreign Earned Income Exclusion where appropriate
Foreign bank and financial account reporting
Specified foreign financial asset reporting where applicable
US Tax Returns UK: What Americans Living in Britain Need to Review
The fact that income has already been taxed in Britain is important, but it normally needs to be reflected correctly in the U.S. filing position.
Depending on the facts, relief may involve mechanisms such as the Foreign Tax Credit, the Foreign Earned Income Exclusion, treaty provisions or a combination of rules.
IRS guidance for U.S. taxpayers abroad ↗What income has been reported in the UK?
How does the U.S. classify the same income?
What UK tax relates to that income?
Which U.S. relief mechanism is appropriate?
Your UK Bank Accounts May Matter Even When They Produce Little Income
U.S. reporting can extend beyond the federal income tax return itself. Foreign financial account and asset reporting needs to be reviewed separately.
Foreign Bank & Financial Accounts
An FBAR can be required where the aggregate value of foreign financial accounts exceeds the applicable reporting threshold at any point during the year.
Read IRS guidance ↗Specified Foreign Financial Assets
Depending on filing status, residence and asset values, separate foreign financial asset reporting can also need to be considered.
View Form 8938 information ↗Reporting thresholds and definitions vary by form and circumstances. The correct requirement should be checked for the relevant tax year rather than assumed from a previous return.
Start With the UK Figures. Build the U.S. Filing Position From There.
For somebody already living and working in Britain, much of the information needed for the U.S. return already exists — but it may be spread across payroll records, Self Assessment returns, bank statements, investment reports and property accounts.
ATA helps bring those records into one organised filing pack so that the U.S. reporting can be approached from reconciled information rather than starting again from scratch.
Review employment, Self Assessment, investment, property and other UK income sources.
Organise tax paid, income schedules, foreign accounts and supporting records.
Highlight the federal return, foreign tax, account and asset reporting areas requiring review.
Where specialist U.S. tax preparation or advice is required, work from the organised accounting information rather than duplicating the underlying work.
Situations Where U.S. Filing Support Can Become Particularly Useful
UK Accounting Support With U.S. Specialist Input Where Required
Complex U.S. international tax matters can require specialist expertise. ATA’s role is to keep the UK accounting and tax information organised and connected to the U.S. filing process.
Where a U.S.-qualified or authorised specialist is needed, ATA can help provide the underlying UK accounting information and schedules needed for the engagement.
Guidance for Americans Living Abroad
Start With the UK Records You Already Have
Tell us how long you have lived in the UK, what income you receive, whether you have UK financial accounts and whether your U.S. filings are currently up to date.
Tell Us About Your UK & U.S. Filing Position
You do not need to know which forms apply before contacting us. Give us an overview of your circumstances and the filings already being completed.
