Understanding Taxes for Americans Living in the UK
If you’re an American living in the UK, tax season can feel like walking through a maze. You have to deal with two tax systems — HMRC and the IRS — and both expect accurate reporting. That’s why working with U.S. and U.K. tax specialists for American citizens is essential.
Unlike typical UK accountants, cross-border tax experts understand both US and UK regulations, making sure you stay compliant and avoid double taxation. At JungleTax, we help US expats simplify the process, reduce liabilities, and file on time every year.
Why Dual Tax Compliance Matters
The US is one of the few countries that taxes based on citizenship, not just residency. This means if you’re an American citizen living abroad — even permanently — you still need to file a US tax return.
At the same time, as a UK resident, you must also file with HMRC. Without proper coordination, you could pay tax twice on the same income. That’s where our cross-border tax accountants in the UK make the difference.
The Role of US and UK Tax Specialists
A US and UK Tax specialist for American citizens manages both sides of your financial picture. At JungleTax, we:
- Prepare and file accurate US and UK tax returns.
- Apply the treaty benefits between the two countries.
- Maximise foreign earned income exclusions.
- Ensure compliance with FATCA and FBAR reporting.
- Help minimise your overall tax bill legally.
Our goal is simple — to make sure you pay only what’s required, not more.
Key Filing Requirements for Americans in the UK
If you’re a US citizen in the UK, here are the significant obligations to understand:
1. US Federal Tax Return (IRS Form 1040)
Even if you live abroad, you must file annually if your income exceeds the filing threshold.
2. Foreign Bank Account Report (FBAR)
If your combined foreign bank balances exceed $10,000 at any time during the year, you must report them to the US Treasury.
3. FATCA Reporting (Form 8938)
This applies if your foreign assets exceed specific thresholds (typically $200,000 for singles living abroad).
4. UK Self-Assessment Tax Return
If you earn income in the UK — from employment, property, or self-employment — you’ll need to report it to HMRC.
Our US expat tax filing UK service ensures all these filings align ideally to avoid overlaps or errors.
Avoiding Double Taxation
The UK–US Tax Treaty prevents you from paying tax on the same income twice. However, understanding and applying treaty rules is a complex process.
JungleTax’s US and UK Tax specialists for American citizens identify which reliefs apply, including:
- Foreign Earned Income Exclusion (FEIE) – Excludes up to $126,500 of foreign income (2024 threshold) from US tax.
- Foreign Tax Credit (FTC) – Offsets US tax with what you’ve already paid to HMRC.
- Tax Treaty Benefits – Prevents overlapping taxation on pensions, dividends, or self-employment income.
We help you apply the correct combination to minimise or eliminate double taxation.
Common Mistakes US Expats Make
Even experienced professionals get caught by the IRS or HMRC due to minor errors. Here’s what our team often corrects:
- Missing FBAR or FATCA filings – Fines for non-compliance can reach tens of thousands.
- Reporting in USD incorrectly – All foreign income must be converted at IRS-approved exchange rates.
- Not claiming available exclusions – Many expats overpay simply because they skip the FEIE or FTC.
- Forgetting state taxes – Some US states (like California or New York) still require returns even if you’ve left.
- Ignoring UK deadlines can result in late filing with HMRC, which brings automatic penalties.
With cross-border tax accountants in the UK, these mistakes disappear.
Tax Planning Strategies for American Expats
Proactive planning saves more than last-minute filing. Here’s how to keep your finances optimised year-round:
1. Align Your Tax Year
The US tax year runs from January to December, while the UK’s runs from April to April. Specialists help reconcile both timelines efficiently.
2. Track Foreign Income and Deductions
Keep records of income, pensions, interest, and rental earnings in both countries.
3. Open Separate Business Accounts
If self-employed, separate your business and personal income for transparent reporting to both tax authorities.
4. Claim Bilateral Reliefs
Use tax treaty clauses to reduce or delay tax where legally possible.
5. Plan for Pensions
Contributions to UK pension schemes can affect your US tax return. Our experts help you avoid unexpected double taxation.
At JungleTax, our US expat tax filing and UK services include detailed financial forecasting, enabling you to plan rather than panic.
How JungleTax Helps American Citizens in the UK
Our US and UK Tax specialists for American citizens simplify complex global compliance. Here’s how:
- Dual-Qualified Expertise – Our team is proficient in both IRS and HMRC systems.
- Comprehensive Filing Support – From FATCA to UK self-assessment, we handle everything.
- Penalty Prevention – We ensure every report is accurate and timely.
- Strategic Tax Optimisation – Our goal is not just compliance, but long-term savings.
We serve professionals, freelancers, families, and entrepreneurs across the UK who need reliable expat tax guidance.
Why Choose JungleTax?
Because you deserve peace of mind knowing your taxes are fully compliant. JungleTax combines international expertise with a friendly, approachable team that speaks your language — literally and financially.
We don’t just file; we help you understand your obligations, find relief, and build more innovative tax strategies year after year.
Whether you’ve recently moved to London or have lived in the UK for decades, our cross-border tax accountants UK ensure your financial life stays in sync with both governments.
Final Thoughts
Tax compliance as an American in the UK doesn’t have to be stressful. With professional US and UK Tax specialists for American citizens, you can meet both IRS and HMRC requirements effortlessly — while saving more through thoughtful planning.
For expert help with your taxes, contact JungleTax today at hello@jungletax.co.uk or call 0333 880 7974.
FAQs
Yes. The US requires all citizens to file annual tax returns, even when living abroad. However, tax treaty reliefs help avoid double taxation.
It’s possible, but risky. Cross-border tax laws are complex, and errors can lead to penalties. Working with specialists ensures complete compliance.
It allows qualifying US citizens abroad to exclude a portion of their foreign income from US taxation — up to $126,500 in 2024.
Yes, if your foreign bank accounts exceed $10,000 at any point in the year, you may need to report them. Failing to file can trigger significant fines.
We provide ongoing annual filing, tax strategy, and compliance management — ensuring your dual tax obligations stay under control every year.