Paying foreign tax on US income - UK resident

[j26 9]

Hello! I was wondering if anyone from the UK could help me as I am struggling a little to understand the UK Gov website/find anything to help.

 

I moved to the USA in June of this year on a K1 visa, and am now married to my husband. I am currently awaiting my AOS/Green Card and was wondering, once I get a job and start to earn an income, do I need to continue to pay UK tax on my foreign income even if I am not moving back to the UK/moving any money to the UK? Has anyone had any experience with this and is able to let me know?

 

Thank you so much!

[Lil bear 4,064]

1 hour ago, j26 said:

Hello! I was wondering if anyone from the UK could help me as I am struggling a little to understand the UK Gov website/find anything to help.

 

I moved to the USA in June of this year on a K1 visa, and am now married to my husband. I am currently awaiting my AOS/Green Card and was wondering, once I get a job and start to earn an income, do I need to continue to pay UK tax on my foreign income even if I am not moving back to the UK/moving any money to the UK? Has anyone had any experience with this and is able to let me know?

 

Thank you so much!

No. Unlike the US , most other countries do not tax income earned by citizens who are not residing in the country   Thankfully !! 
 

https://www.gov.uk/tax-foreign-income#:~:text=Whether you need to pay,'domicile') is abroad.

Edited August 16 by Lil bear

[j26 9]

16 minutes ago, Lil bear said:

No. Unlike the US , most other countries do not tax income earned by citizens who are not residing in the country   Thankfully !! 
 

https://www.gov.uk/tax-foreign-income#:~:text=Whether you need to pay,'domicile') is abroad.

Thank you! I think I read this wrong initially as I thought I would still be classed as a UK resident due to how long I've spent in the UK this year, not sure if I am making this more confusing than it is lol! I took the test they gave you and it says due to how long I've spent and worked in the UK this tax year from April til June I'm still classed as a resident? Unless I took it wrong? Very confused!

[j26 9]

Ah, I think I have answered my own question (although if anyone is reading this and knows otherwise please tell me!) I have spent less than 91 days in the UK (I have spent 61 total during the 24/25 tax year) so working for more than 30 days during this tax year does not count due to this and therefore I am classed as a non-resident?

 

Edited August 16 by j26

[Lil bear 4,064]

1 hour ago, j26 said:

Ah, I think I have answered my own question (although if anyone is reading this and knows otherwise please tell me!) I have spent less than 91 days in the UK (I have spent 61 total during the 24/25 tax year) so working for more than 30 days during this tax year does not count due to this and therefore I am classed as a non-resident?

 

I haven’t read the numbers for UK sorry .. 

 

your question is really more complex than it read in your initial post. You have to gind the answers to

 1. How many days in a single financial year do you need to be resident in the UK in order to be a UK resident for tax purposes 

2. How many days were you residing in  UK during that period 

 

without that info we can’t answer more than the basic principle as i have responded 

 

Happy to help more but i need more data !! 
 

It’s probably quicker to do a video/phone consult with a UK accountant who would answer it a lot quicker!! 

Edited August 16 by Lil bear

[TBoneTX 44,658]

Country-specific thread is moved to the UK regional forum.

[Tesco 65]

You are either a UK resident or non UK resident in a tax year, this can’t be changed. You need to consider the Statutory Residency Test (SRT) and the automatic ties section. Many will benefit from the ‘Split Year’ treatment, meaning you are a UK Resident to the date of departure. A warning however… you must consider the UK ties and visits back in the tax year and subsequent, HMRC will easily class you as a resident and tax you on worldwide income! Remember any UK sourced income will continue to attract tax, so you need to file an R43 to maintain your Personal Allowance.

if you move to the US and have a job, or have NO home,(OR place available to you) then these tests prevail. It’s a complex area, but not insurmountable.

Any Chartered Accountant can help… just remember trips back to the UK… it can cause devastation financially.  
You need to report by the end of the UK tax year.

On another note don’t forget the many reporting responsibilities you have to the IRS. FinCEN114, 8938 to name a few. This can cause untold problems and extreme financial penalties, ($10,000 min for failure) very much ensure you have a CPA/EA file your taxes when Stateside, even to get the ball rolling for your understanding.

Cross boarder taxation is something people don’t always consider, but vital to be well informed and researched.

 

Edited August 17 by Tesco
Typo

[j26 9]

1 hour ago, Tesco said:

You are either a UK resident or non UK resident in a tax year, this can’t be changed. You need to consider the Statutory Residency Test (SRT) and the automatic ties section. Many will benefit from the ‘Split Year’ treatment, meaning you are a UK Resident to the date of departure. A warning however… you must consider the UK ties and visits back in the tax year and subsequent, HMRC will easily class you as a resident and tax you on worldwide income! Remember any UK sourced income will continue to attract tax, so you need to file an R43 to maintain your Personal Allowance.

if you move to the US and have a job, or have NO home,(OR place available to you) then these tests prevail. It’s a complex area, but not insurmountable.

Any Chartered Accountant can help… just remember trips back to the UK… it can cause devastation financially.  
You need to report by the end of the UK tax year.

On another note don’t forget the many reporting responsibilities you have to the IRS. FinCEN114, 8938 to name a few. This can cause untold problems and extreme financial penalties, ($10,000 min for failure) very much ensure you have a CPA/EA file your taxes when Stateside, even to get the ball rolling for your understanding.

Cross boarder taxation is something people don’t always consider, but vital to be well informed and researched.

 

Thank you!

 

I won't have any income/job/home in the UK and my job/home will only be in the USA. I do not think I am classed as a tax resident of the UK due to the fact I have spent less than 91 days in the UK in this tax year (left the UK at the beginning of June, worked from April til May)....I have contacted HMRC previously to let them know I have moved abroad and they have refunded me the tax I paid. Which I think means once I start a job at the end of this year I should be okay? I'll only be visiting maybe once or twice a year for a vacation and not for work.

Edited August 17 by j26

[Tesco 65]

Best to have a good understanding of SRT and the 16 day rule. Also form R43, SA106. Don’t get caught that you pay to the UK, tax on US earnings also. This would

lead to the filing of IRS form 1116, (not for the faint hearted).

[SL2024 29]

On 8/17/2024 at 10:24 AM, j26 said:

Thank you!

 

I won't have any income/job/home in the UK and my job/home will only be in the USA. I do not think I am classed as a tax resident of the UK due to the fact I have spent less than 91 days in the UK in this tax year (left the UK at the beginning of June, worked from April til May)....I have contacted HMRC previously to let them know I have moved abroad and they have refunded me the tax I paid. Which I think means once I start a job at the end of this year I should be okay? I'll only be visiting maybe once or twice a year for a vacation and not for work.

 

Do you know if they refund you all the tax you have paid in the tax year or a % of what you have paid in tax for this tax year? Apologies - I did some reading on this yesterday but I haven't looked at it all in depth yet.

[j26 9]

3 hours ago, SL2024 said:

 

Do you know if they refund you all the tax you have paid in the tax year or a % of what you have paid in tax for this tax year? Apologies - I did some reading on this yesterday but I haven't looked at it all in depth yet.

I got my income tax as a refund back to me from April of this year to the end of May which is when I finished work! 

[SL2024 29]

1 hour ago, j26 said:

I got my income tax as a refund back to me from April of this year to the end of May which is when I finished work! 

Hi,

 

Thank you for getting back to me and letting me know. Just wanted to ask as I will be handing my notice in at work in the next 5-7 weeks and I wasn’t aware of getting tax back until another member on the forum mentioned it to me yesterday.