{"id":295,"date":"2022-12-06T06:16:00","date_gmt":"2022-12-06T10:16:00","guid":{"rendered":"https:\/\/hrbcomlnp.hrblock.com\/expat-tax-preparation\/resource-center\/?p=295"},"modified":"2024-02-06T14:34:55","modified_gmt":"2024-02-06T18:34:55","slug":"u-s-expat-taxes-in-the-united-kingdom","status":"publish","type":"post","link":"https:\/\/hrbcomlnp.hrblock.com\/expat-tax-preparation\/resource-center\/country\/united-kingdom\/u-s-expat-taxes-in-the-united-kingdom\/","title":{"rendered":"How Taxes Work for U.S. Citizens Living in the United Kingdom"},"content":{"rendered":"\n

For most Americans working in the U.K., U.S. taxes can seem a bit overwhelming. Not only do you have to worry about how to file your U.S. taxes (logistically), but you probably also have a whole host of new considerations to take into account. For example, how do your U.K. financial accounts affect your filing? What options you have to reduce your tax bill? How do taxes work if you’re a dual citizen of the U.S.\/U.K.<\/a>?<\/p>\n\n\n\n

Don’t worry, H&R Block has your back. Below, we’ll dive into the basics of what you should know about U.S. expat taxes in the U.K., and help you get started filing.<\/strong> Whether you\u2019re an American in the U.K. filing taxes for the first time or a seasoned Brit with years of U.S. expat taxes under your belt, we\u2019ve got a solution for you. Get started with our made-for-expats online expat tax services <\/a>today!<\/strong><\/p>\n\n\n\n

File on my own<\/a><\/div>
File with an advisor<\/a><\/div><\/div>\n\n\n\n

What U.S. citizens working in the U.K. should know about U.S. taxes<\/h2>\n\n\n\n

Do U.S. citizens working abroad pay taxes? Do I have to pay both U.K. and U.S. taxes? How much do I pay? Here’s what you need to know if you’re an American filing taxes from the U.K.:<\/p>\n\n\n\n

To start, U.S. taxes are based on citizenship, not place of residency. The U.S. has tax rules for U.S. expats<\/a> that state you have a U.S. tax filing obligation no matter when or where you lived or worked in the U.K<\/strong>. Even if you’re only there a short time, working as an American in the U.K. can still affect your U.S. taxes. For example, if you earn income while on a short-term assignment, you\u2019ll need to report that income on your U.S. taxes. The deeper your financial roots in the United Kingdom, the more tax considerations you’ll have.<\/p>\n\n\n\n

You may need to report your U.K. financial accounts and assets<\/strong>. Generally, U.S. taxpayers with more than $10,000 in foreign bank or financial accounts are subject to FBAR filing<\/a> and reporting requirements. You may also be subject to FATCA reporting requirements<\/a> if you have foreign assets valued at $200,000 and higher.<\/p>\n\n\n\n

You can lower your U.S. bill and avoid dual taxation with certain tax strategies<\/strong>. Expats may take advantage of one of two options, detailed below, to lower their taxes.<\/p>\n\n\n\n