Navigating dual US UK citizenship taxes isn’t a hassle anymore!

Expat Global Tax helps US expats living in the UK navigate the complex process of filing US and UK taxes. We make filing taxes less overwhelming.

Basics of USA expat taxes

Let’s start with the basics! US expats living in the UK or in other parts of the world, almost always have the same question – Do expats have to file US taxes? Well, the answer to this is a resounding yes! You must always file for USA expat taxes, as long as your income exceeds the minimum filing threshold. In fact, we urge our clients to file their taxes even if they don’t meet the threshold as it often comes in handy to claim certain tax credits or to receive a fund.

All that said, you’d be happy to know that out of the vast majority of US expats who file taxes, most don’t end up owing US expat taxes. Wondering why? Well, that’s because of the many deductions, credits, and exclusions! However, to qualify for these, you must again meet some rules. We at Expat Global Tax help you with all that and more!

Luckily, the USA gives expats an automatic 2-month extension to file, so in most cases you have until June 15 to go about filing US taxes from UK. The same extension also applies to resident aliens residing abroad and all individuals on military duty outside the country.

Everything on dual US UK citizenship taxes

For those who do not know, the US is one of the two countries in the world that has citizenship-based taxes, so irrespective of which country you reside in, you will have to file US taxes. This is applicable even if you earn no income in the US. So, if you have dual citizenship – in the US and in the UK, you will have to file taxes not just in the US, but also in the UK.  That said, when you fall in the UK tax bracket, it can influence how you go about filing US taxes from UK, so you need to understand the UK tax bands and taxation rates as well.
That said, some people are ‘accidental Americans’ and they too have US tax obligations. The term ‘accidental Americans’ who were born in the US or have US parents, but have lived and worked their entire life in the UK.

However, just because you have dual citizenship and have a US tax obligation, doesn’t mean that you will end up owing anything to the US. There are various tax treaties and credits/ exclusions in place, to make the lives of the US expats easy and our team at Expat Global Tax is here to help you every step of the way.

What do I need to know about the UK and US double tax treaty?

To ease the burden of taxes and to make everyone’s life much easier, the United States has established tax treaties with many countries around the globe, including the UK. Why? Well, that’s because most countries and even the UK have some form of taxation for residents, which they are obligated to pay. But then US expats have a US tax obligation as well, and this may have created a problem otherwise.

While US’ Foreign Earned Income Exclusion and the Foreign Tax Credit systems sure simplified things, there still remained a few sticky situations which needed attention. For example, people living in the UK ran into trouble when it came to pension taxation. To address this, the US entered into individual tax treaties with different countries around the globe.

The UK and US double tax treaty, which is not the original name that it got, isn’t just about double taxes, and instead also addresses capital gains and tax evasion. That said, there might still be situations where you might get double taxed, such as times when your company in the UK sends you on a business trip to the US. Luckily, Article 24 of the treaty would help alleviate this situation. This is where you need professionals like us at Expat Global Tax, where our team helps professionals/ US expats in the UK with the nuances of filing US taxes from UK. Connect with our team for a free consultation now!

Expert tax solutions for a comfortable life abroad

At Expat Global Tax, we help you in filing US taxes from UK. Our team makes sure that you comply with both US and UK tax laws, thereby minimizing your tax burden as you navigate life abroad.

Why connect with Expat Global Tax for filing dual US UK citizenship taxes?

At Expat Global Tax, we specialize in helping US expats living in the UK handle the complex process of filing dual citizenship taxes. Here’s how we make a difference.

Expert guidance: Handling the modern tax requirements can be a hassle, more so when you have to worry about two countries. Luckily, our team of tax professionals have in-depth knowledge of the tax rules in both the US and the UK, thus making sure that your tax filings are accurate and meet the rules. Our team will help you understand the nuances of dual taxation treaties and how it stands to affect your specific situation.

Minimizing dual taxation: One of the biggest challenges of people with dual citizenship is avoiding double taxation. Our team at Expat Global Tax works tirelessly to make sure that you can avail the full advantage of tax credits, exclusions, and other deductibles, as per the US and UK tax laws. Our only goal is to lower your tax liability while making sure that you comply with the tax laws in both the countries.

Seamless filing process: Managing taxes in two countries can be a daunting task. That’s why we offer a streamlined and hassle-free process of filing dual US UK citizenship taxes. Our personalized approach makes sure that your tax obligations in the US and the UK are met properly, so that you can focus on your life.

Frequently Asked Questions

How do I avoid double taxation between the US and UK?

To avoid double taxation, we at Expat Global Tax help you claim tax credits such as the Foreign Tax Credit, which basically allows you to offset US taxes with taxes paid in the UK. There’s more! Our team also helps you with Foreign Earned Income Exclusion (FEIE) to reduce your taxable income. Our team has a thorough understanding of the US-UK tax treaty and that’s how we help you with USA expat taxes effectively.

What is the Foreign Earned Income Exclusion (FEIE)?

FEIE or Foreign Earned Income Exclusion allows US expats to exclude a certain portion of their foreign-earned income from US taxes. This significantly lowers the tax liability when filing US taxes from UK. However, to qualify, you must meet certain criterias – proving your foreign residency status or time spent abroad during the tax year.

Do I need to report my UK bank accounts to the US?

Yes, as an US expat staying in the UK, you will have to report your UK bank accounts to the US, provided their total value exceeds $10,000 at any time during the year. At Expat Global Tax, we help you meet all requirements by filing the Foreign Bank Account Report (FBAR), and if necessary, even the FATCA forms. Give us a call now!