Tax Question - UK Bank Account

[DTLVbrit 3]

Hey there,

I saw something mentioned on another forum that talked about being non-resident in the UK for tax purposes and keeping a UK bank account, and had a quick question. I have been a non resident in the UK for several years now and I have no UK sourced income and no income arising in the UK (and visit for a max of 8 days a year). Therefore I have confirmed with HRMC that I do not need to file any self assessment or any tax forms in the UK since leaving permanently.

With that being said, are there any UK tax implications for putting about £50-£100 a month into my UK checking/current account? It's just a checking account (with no interest) that I use to put money in to pay off my student loan (direct debit).

This is money that has been taxed in the US, and I would assume with being a non-resident, that I can use this bank account for whatever reason I want without any tax concern...

Any thoughts on this?

[Nich-Nick 3,354]

Not answering your question, but foreign accounts totaling $10,000 (combined) have to be reported to the US http://www.irs.gov/Businesses/Small-Businessso heads up to anybody leaving money in the UK.

[DTLVbrit 3]

Not answering your question, but foreign accounts totaling $10,000 (combined) have to be reported to the US http://www.irs.gov/Businesses/Small-Businessso heads up to anybody leaving money in the UK.

Yup - always worth mentioning. That and potentially Form 8938 if accounts are $50k + (if single)

Haha, my UK account has less than ~ $500 in it at most times, so I don't need to worry about those extra forms to file!

Any other insight to the original question? I have to assume it's all ok as a non resident of the UK?

[Nich-Nick 3,354]

Any other insight to the original question? I have to assume it's all ok as a non resident of the UK?

Nope, but my husband has a UK bank account and never considered there would be UK income tax on it. Why do you think there would be? I believe the bank thinks he is still resident at his address. His Mum moved there after he left, so gets any mail. But he did file a P-85 to get back some taxes when he left. and the pension offices know he is in the US.

We have filed both FBAR and FATCA so kept up with US requirements. FATCA is $100,000 if married and includes pensions. He assumes his pension falls above that so just files it, naming his private pension funds and amount unknown.

Edited February 9, 2015 by Nich-Nick

[DTLVbrit 3]

Nope, but my husband has a UK bank account and never considered there would be UK income tax on it. Why do you think there would be? I believe the bank thinks he is still resident at his address. His Mum moved there after he left, so gets any mail. But he did file a P-85 to get back some taxes when he left. and the pension offices know he is in the US.

We have filed both FBAR and FATCA so kept up with US requirements.

I guess I just wondered if you were to put money in that UK account from US (already taxed) income, it might be classed as income in the UK. I guess that doesn't make sense really as ultimately, non residents don't pay UK tax on anything but income earned in the UK or from a UK source (from my understanding).

(I also filed a P85 years ago and became non resident).

So I guess someone who is a UK non resident can put any money from a US wage in a UK bank account and have no UK tax implications (while keeping the FBAR and Form 8938 up to date with the right authorities). Sound right?

[DTLVbrit 3]

Nope, but my husband has a UK bank account and never considered there would be UK income tax on it. Why do you think there would be? I believe the bank thinks he is still resident at his address. His Mum moved there after he left, so gets any mail. But he did file a P-85 to get back some taxes when he left. and the pension offices know he is in the US.

We have filed both FBAR and FATCA so kept up with US requirements. FATCA is $100,000 if married and includes pensions. He assumes his pension falls above that so just files it, naming his private pension funds and amount unknown.

Also, you mention private pensions for FBAR/FATCA - I assume these filing requirements do not include the UK Basic State Pension?

Quick edit - I am nowhere near retirement age, and only worked briefly (2 years) in the UK before moving to the US permanently right after University

Edited February 10, 2015 by DTLVbrit

[DTLVbrit 3]

Actually, I may have found my answer to the State Pension and FATCA/FBAR reporting:

‘Social Security’- type program benefits provided by a foreign government

Form 8938 - No

FBAR - No

http://www.irs.gov/Businesses/Comparison-of-Form-8938-and-FBAR-Requirements

Phew!

Edited February 10, 2015 by DTLVbrit

[Nich-Nick 3,354]

Actually, I may have found my answer to the State Pension and FATCA/FBAR reporting:

Social Security- type program benefits provided by a foreign government

Form 8938 - No

FBAR - No

http://www.irs.gov/Businesses/Comparison-of-Form-8938-and-FBAR-Requirements

Phew!

I haven't even read the latest 8938 scoop. The year it was mandatory, it was vague. I transferred up the chain calling IRS, arguing with each level and eventually spoke to the Tax Law Dept for 30-45 minutes. I didn't do it, even with the huge penalty threats. The IRS guy said off the record, he wouldn't either. The next year I thought it would be better explained. Not really. But because pensions are mentioned and my husband has a private pension with more years than you are old probably, I listed it. We have no exact value to put down, and failed at attempts to get an actual value because it isn't a pot of money with only his name on it. So the IRS got the name and address and account numbers of two private pensions and value is $0.00. I will read the latest when I start working on taxes to see if anything has changed for 2014. Edited February 10, 2015 by Nich-Nick

[DTLVbrit 3]

I haven't even read the latest 8938 scoop. The year it was mandatory, it was vague. I transferred up the chain calling IRS, arguing with each level and eventually spoke to the Tax Law Dept for 30-45 minutes. I didn't do it, even with the huge penalty threats. The IRS guy said off the record, he wouldn't either. The next year I thought it would be better explained. Not really. But because pensions are mentioned and my husband has a private pension with more years than you are old probably, I listed it. We have no exact value to put down, and failed at attempts to get an actual value because it isn't a pot of money with only his name on it. So the IRS got the name and address and account numbers of two private pensions and value is $0.00. I will read the latest when I start working on taxes to see if anything has changed for 2014.

Ah I see - thanks for the info. That makes sense about private pensions as the word pensions are mentioned. That's what had me concerned just now - thankfully it sounds like state pensions like the UK one aren't included in the filing requirements.

It sounds like you did everything you could to find the information needed. It's a shame everything seems so complex