US and UK Tax Specialists for American Citizens: Dual-Filing Guide
Living or working in the UK as an American creator offers incredible opportunities — but complicated tax rules. The challenge? Filing in two countries at once. That’s where US and UK Tax specialists for American citizens come in.
The United States taxes its citizens on worldwide income, even if they live abroad. Meanwhile, the UK requires residents to report and pay taxes on income earned within its jurisdiction. Without expert guidance, you could easily face double taxation, missed credits, or compliance penalties.
At JungleTax, we help American expats, freelancers, and digital creators handle dual-tax filing effortlessly. Let’s explore how to stay compliant and keep more of your income.
The Challenge of Dual-Tax Filing
If you’re an American living in the UK, you fall under the IRS’s global tax reach and must file a UK tax return. Even if you’ve paid tax to HMRC, the IRS still expects a report. This creates confusion for many Americans who assume paying UK tax alone is enough.
Consider Sarah, a YouTuber from Los Angeles who is now based in London. She earns income from U.S. brands and UK sponsorships. Without understanding her dual obligations, she risked both late penalties and double taxation. By working with US and UK Tax specialists for American citizens at JungleTax, she learned how to use available tax credits to offset taxes in one country against those in another.
Understanding Tax Residency
Before filing, you must determine your tax residency status in both countries. The U.S. treats all citizens as taxpayers, no matter where they live. The UK, however, uses the Statutory Residence Test to determine whether you are a resident or non-resident for tax purposes.
For most American creators in the UK, you’ll be considered a UK tax resident if you’ve lived there for over 183 days in a tax year. If you meet this threshold, you’ll likely need to file both:
- A UK Self-Assessment tax return
- A U.S. federal tax return (Form 1040)
JungleTax’s experts ensure your filings align with both countries’ requirements while maximising your available credits and deductions.
The Importance of the US-UK Tax Treaty
The US-UK Tax Treaty exists to prevent double taxation on the same income. It defines which country has primary taxation rights and allows you to claim credits or exemptions in the other country.
For example, if you pay UK taxes on your brand sponsorship income, you can often offset that amount against your U.S. liability using the Foreign Tax Credit (Form 1116).
Many creators don’t realise how beneficial this treaty is — or how easily mistakes can cause IRS audits. JungleTax’s dual-qualified accountants interpret treaty clauses accurately and ensure your filings stay compliant and functional.
Foreign Earned Income Exclusion (FEIE) Explained
One of the most valuable tools for Americans abroad is the Foreign Earned Income Exclusion (FEIE). This allows you to exclude up to $126,500 (2024 limit) of foreign-earned income from U.S. taxation if you qualify.
To claim it, you must pass either:
- The Physical Presence Test (living abroad for at least 330 days in 12 months), or
- The Bona Fide Residence Test (proving long-term residence in another country).
For many creators based in the UK, this means your UK income can be largely exempt from U.S. tax. JungleTax ensures you meet all FEIE requirements and properly file Form 2555 to secure your exclusion.
Navigating Self-Employment Tax for American Creators
Most creators and influencers are self-employed, meaning they pay both income and self-employment taxes. However, when you move abroad, things get tricky.
The U.S.–UK Totalization Agreement prevents you from paying Social Security taxes to both countries. If you’re contributing to the UK’s National Insurance system, you can often avoid U.S. self-employment tax altogether.
At JungleTax, our team reviews your income type, residency, and social contributions to ensure you don’t pay more than necessary.
Reporting Foreign Bank Accounts and Income (FBAR & FATCA)
Many Americans abroad overlook their obligation to report foreign accounts. If you have more than $10,000 across UK bank accounts at any time during the year, you must file a Foreign Bank Account Report (FBAR) with FinCEN.
Additionally, FATCA (Foreign Account Tax Compliance Act) requires reporting of financial assets exceeding certain thresholds. Failure to comply can lead to penalties of $10,000 or more.
US and UK Tax specialists for American citizens, like JungleTax, simplify these filings by preparing FBAR and FATCA reports alongside their tax returns, ensuring complete transparency and peace of mind.
Real-Life Example: How JungleTax Saved a Creator £5,000
Jason, a U.S. filmmaker working between New York and Manchester, didn’t realise he needed to declare UK income on his American return. When he came to JungleTax, he faced penalties and confusion over currency conversions and allowable deductions.
Our specialists reviewed both his IRS and HMRC filings, reclaimed double-paid taxes using treaty provisions, and helped him file amended returns. The result? Over £5,000 saved and complete compliance going forward.
This is why working with experts on dual taxation for Americans in the UK makes all the difference.
Common Mistakes American Creators Make
- Assuming UK taxes automatically cover U.S. obligations
- Failing to report foreign bank accounts
- Misunderstanding deductible expenses for creators
- Ignoring filing deadlines (especially April for the U.S.)
- Not converting currencies properly when filing with the IRS.
These errors can trigger audits and financial penalties. JungleTax helps American citizens avoid these pitfalls with precise, proactive tax planning.
When to Hire a Dual-Tax Specialist
If you earn income in both currencies, have investments or property in the UK, or work as a freelancer or content creator, you need a dual-qualified accountant. JungleTax’s US and UK Tax specialists for American citizens are trained in both HMRC and IRS regulations — ensuring every form is correct, every credit applied, and every deadline met.
We handle everything from Self-Assessment to IRS filing, FATCA compliance, and treaty application.
How JungleTax Simplifies Dual-Tax Filing
- Personalised Review: We assess your income sources, tax residency, and filing requirements in both countries.
- Brilliant Deductions: We identify cross-border tax credits and expense claims relevant to content creators.
- Full Compliance: We file all required forms with HMRC and the IRS, ensuring complete legal protection.
- Peace of Mind: Our proactive planning prevents unexpected tax bills or compliance issues down the road.
With JungleTax, you can focus on creating content — while we handle the complex part.
Stay Compliant, Stay Confident
Filing taxes in two countries doesn’t need to be stressful. The right specialists turn a daunting process into a clear, structured system. With JungleTax, you’ll never worry about missing a form or paying more than necessary.
Your creative income deserves innovative financial management — and we’re here to make that happen.
For expert help with your taxes, contact JungleTax today at hello@jungletax.co.uk or call 0333 880 7974.
FAQs
Yes. American citizens must report global income to the IRS even while living in the UK. The UK also requires tax filings for residents, but treaty credits help avoid double taxation.
It ensures that income isn’t taxed twice by both governments. It lets you offset taxes paid in one country against your liability in the other.
Yes, through the Foreign Earned Income Exclusion (FEIE), if you qualify under the physical presence or residency tests.
Failing to file can lead to penalties of $10,000 or more. JungleTax ensures all your reporting obligations are met.
JungleTax’s US and UK Tax specialists for American citizens manage your IRS and HMRC filings, ensure full treaty compliance, and maximise your credits to reduce overall tax.