US and UK Tax Accountants: 10 Challenges Creators Face

The rise of digital creators working across borders has reshaped how income, taxes, and compliance operate globally. If you’re a US creator living or working in the UK, managing your taxes can feel like walking a tightrope between two different systems. While you might thrive creatively, the tax world can get complicated fast. That’s where US and UK tax accountants in the UK become invaluable, helping you navigate complex cross-border tax rules while staying fully compliant with both HMRC and the IRS.

In this post, you’ll explore the top ten tax challenges US creators face when managing UK income, brand deals, and global revenue — and how working with experienced accountants can save you from costly mistakes.

1. Understanding Dual Tax Obligations

As a US citizen, you must report worldwide income to the IRS, even if you live and work abroad. At the same time, as a UK resident, HMRC expects you to declare your UK-sourced income. This dual responsibility leads to confusion about where to file, what to report, and when. Skilled US and UK tax accountants in the UK can guide you through both systems and ensure that you meet your obligations without overpaying.

Without professional help, many creators risk double taxation — paying tax twice on the same income. This is where double taxation relief becomes essential. Proper filing under the US–UK tax treaty can help offset taxes paid in one country against those owed in another, ensuring fair treatment of your earnings.

2. Managing Income from Multiple Sources

Creators rarely earn from one stream. Between sponsorships, ad revenue, affiliate partnerships, and paid collaborations, income can come from brands in both the US and the UK. The problem arises when these sources are paid in different currencies and through various platforms, like PayPal or YouTube AdSense.

Each country has its own reporting standards for foreign income. US expat tax filing experts at JungleTax help creators properly document all revenue streams, convert foreign income into the correct reporting currency, and ensure you meet both nations’ disclosure requirements accurately.

3. Dealing with Complex Residency Rules

Determining your residency status can make or break your tax strategy. The UK uses the Statutory Residence Test to assess whether you’re a resident for tax purposes, while the US taxes citizens on worldwide income regardless of where they live. The overlap between these two systems often causes confusion among expats.

An experienced accountant helps determine your tax residency and ensures you don’t fall into accidental non-compliance. For instance, if you stay in the UK for more than 183 days in a year, HMRC considers you a tax resident — meaning you must file a UK return, even if you already paid US taxes. US and UK tax accountants in the UK interpret these rules clearly and design tax plans that prevent double reporting.

4. Handling Social Media Income and Brand Deals

Brand collaborations and influencer sponsorships complicate tax filings even further. When a UK-based brand pays you for a campaign, it’s considered UK-sourced income, even if you’re an American citizen. This means HMRC taxes that payment first. But because you must also report that same income to the IRS, you face potential duplication.

Specialised US and UK tax accountants in the UK help you determine where income originates, how to apply foreign tax credits, and how to stay compliant under the tax treaty. JungleTax, for instance, allows creators to record every collaboration correctly, deduct allowable expenses, and minimise total tax burdens while maintaining transparency with both authorities.

5. Overlooking the Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion allows US citizens living abroad to exclude a portion of their foreign income from US taxation. However, the rules are strict, and not all income qualifies. Many creators assume all overseas income is exempt, which often leads to unexpected tax bills later.

Accountants specialising in US expat tax filing know how to apply FEIE correctly and when it’s better to claim foreign tax credits instead. Choosing the wrong route could cost you thousands in unnecessary taxes. Expert guidance ensures you optimise every allowance available under both tax systems.

6. VAT and Indirect Tax Confusion

In the UK, creators who earn more than £90,000 annually must register for VAT (Value Added Tax). However, most US creators have never dealt with VAT before. This indirect tax can apply to digital services, paid promotions, or sales through platforms like Patreon or Etsy.

US and UK tax accountants in the UK assist creators in determining whether VAT registration applies, calculating the correct rates, and filing returns accurately. They also help you recover input VAT on eligible business expenses, keeping your overall tax bill manageable.

7. Managing Currency Conversion and Exchange Rate Fluctuations

If you’re earning in both USD and GBP, exchange rates can create discrepancies in your reported income. HMRC requires all foreign income to be converted into GBP using specific exchange rates, while the IRS demands the same in USD. Inconsistent conversions often lead to mismatches in reported figures.

Accountants at JungleTax help creators maintain precise conversion records and use authorised rates that satisfy both tax agencies. This ensures your filings remain consistent and compliant while protecting you from unnecessary scrutiny or penalties.

8. Tracking Allowable Business Expenses

Many creators miss out on legitimate deductions simply because they’re unsure which expenses apply in both countries. Equipment, software subscriptions, home office costs, and even travel to brand events can all be deductible. However, the categories and thresholds vary between HMRC and the IRS.

Professionals familiar with cross-border accounting guide you through both deduction systems. They identify which expenses qualify in each jurisdiction and prevent over-claiming — an error that could trigger an audit. This detailed tracking enables US and UK tax accountants to help creators keep more of their income legally and efficiently.

9. Filing Deadlines and Conflicting Tax Years

The US and UK tax years don’t align. The UK tax year runs from April 6 to April 5, while the US tax year follows the calendar year. This misalignment confuses many expats when reporting income across both systems. Missing a deadline in either country leads to fines, interest, and potential compliance issues.

With guidance from US expat tax filing experts, creators can create a coordinated calendar for both jurisdictions. Accountants ensure timely submissions, align reporting data, and maintain consistent records for both HMRC and the IRS, avoiding unnecessary stress during filing season.

10. Navigating Cross-Border Tax Planning

As your brand grows, strategic tax planning becomes essential. If you’re earning significant revenue or considering setting up a business entity, your tax structure directly affects your profitability. Incorporating in the wrong country or failing to plan for tax treaties could limit your financial potential.

US and UK tax accountants in the UK offer ongoing advisory support, helping creators choose the most tax-efficient setup. Whether you form a UK limited company, a US LLC, or operate as a sole trader, professionals like JungleTax guide you through each decision with clarity and confidence. Their expertise ensures your tax structure supports your global ambitions, not hinders them.

Final Thoughts

The creative economy has no borders, but tax authorities certainly do. As a US creator in the UK, navigating two tax systems can be complex — but with expert help, it doesn’t have to be overwhelming. From understanding residency and deductions to leveraging tax treaties and credits, working with US and UK tax accountants in the UK helps you stay compliant, organised, and financially savvy.

At JungleTax, our team specialises in helping American creators manage UK taxes seamlessly. We simplify filings, prevent double taxation, and ensure every deduction works in your favour.

Don’t let international tax laws hold back your creativity—partner with JungleTax — your bridge between US and UK tax success. Reach out at hello@jungletax.co.uk or call 0333 880 7974.