does UK have anything like Fbar or 8938?
#1
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does UK have anything like Fbar or 8938?
I know that HMRC needs people to report oversea income. Does HMRC need people to report oversea bank account or 401k like Fbar? I assume no? If you just have 401k, but do not receive any distribution, I assume there will be no tax from HMRC, just like IRS to UK employment pension?
#2
Re: does UK have anything like Fbar or 8938?
I know that HMRC needs people to report oversea income. Does HMRC need people to report oversea bank account or 401k like Fbar? I assume no? If you just have 401k, but do not receive any distribution, I assume there will be no tax from HMRC, just like IRS to UK employment pension?
#3
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Re: does UK have anything like Fbar or 8938?
many thanks. So the only to do is when you stating receive the income, just report the US income just like your UK income in the self-assessment, right? I think you do not need to report anything about your US bank account unless you receive US bank interests and report it as income, right?
Last edited by Helen1234; Feb 4th 2024 at 5:24 pm.
#4
Re: does UK have anything like Fbar or 8938?
many thanks. So the only to do is when you stating receive the income, just report the US income just like your UK income in the self-assessment, right? I think you do not need to report anything about your US bank account unless you receive US bank interests and report it as income, right?
Not sure about bank interest, as I no longer have a US bank account.
#5
Re: does UK have anything like Fbar or 8938?
HMRC exchanges information with agencies in other countries.
This includes banks. HMRC may be made aware that you have an account but perhaps they do not have specific details.
In that case, they are likely to send a "fishing" letter which states something like "we have been made aware that you have overseas bank accounts. You have not declared these to us and this may be due to an oversight or the result of incorrect advice.
You are required to declare such accounts to HMRC and we will give you this opportunity to declare any such accounts to us".
They do not tell you which accounts they are referring to and are relying on the guilt of the individual to declare all.
Where there is an outstanding tax liability then there would be a bill for the unpaid tax plus a penalty plus interest.
AFAIK where there is no tax liability or the tax due is under the annual threshhold then there is nothing to pay.
HTH
This includes banks. HMRC may be made aware that you have an account but perhaps they do not have specific details.
In that case, they are likely to send a "fishing" letter which states something like "we have been made aware that you have overseas bank accounts. You have not declared these to us and this may be due to an oversight or the result of incorrect advice.
You are required to declare such accounts to HMRC and we will give you this opportunity to declare any such accounts to us".
They do not tell you which accounts they are referring to and are relying on the guilt of the individual to declare all.
Where there is an outstanding tax liability then there would be a bill for the unpaid tax plus a penalty plus interest.
AFAIK where there is no tax liability or the tax due is under the annual threshhold then there is nothing to pay.
HTH
#6
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Re: does UK have anything like Fbar or 8938?
many thanks. Got it. So, before receiving the pension distribution, you have nothing to declare and therefore there is no need to declare account or pension account to HMRC in advance, right?
#7
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Re: does UK have anything like Fbar or 8938?
HMRC exchanges information with agencies in other countries.
This includes banks. HMRC may be made aware that you have an account but perhaps they do not have specific details.
In that case, they are likely to send a "fishing" letter which states something like "we have been made aware that you have overseas bank accounts. You have not declared these to us and this may be due to an oversight or the result of incorrect advice.
You are required to declare such accounts to HMRC and we will give you this opportunity to declare any such accounts to us".
They do not tell you which accounts they are referring to and are relying on the guilt of the individual to declare all.
Where there is an outstanding tax liability then there would be a bill for the unpaid tax plus a penalty plus interest.
AFAIK where there is no tax liability or the tax due is under the annual threshhold then there is nothing to pay.
HTH
This includes banks. HMRC may be made aware that you have an account but perhaps they do not have specific details.
In that case, they are likely to send a "fishing" letter which states something like "we have been made aware that you have overseas bank accounts. You have not declared these to us and this may be due to an oversight or the result of incorrect advice.
You are required to declare such accounts to HMRC and we will give you this opportunity to declare any such accounts to us".
They do not tell you which accounts they are referring to and are relying on the guilt of the individual to declare all.
Where there is an outstanding tax liability then there would be a bill for the unpaid tax plus a penalty plus interest.
AFAIK where there is no tax liability or the tax due is under the annual threshhold then there is nothing to pay.
HTH
#8
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Re: does UK have anything like Fbar or 8938?
many thanks. I think in the self-assessment, there is no place to declare oversea bank account, or pension account (such as Fbar to tell them what account I have and how much I have). So, just declare the oversea income, not the oversea bank account, pension account etc. Is it correct?
#9
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Re: does UK have anything like Fbar or 8938?
Exactly what I do. I have US pensions, and US dividends from a taxable brokerage account and simply declare the income, using the HMRC official exchange rates in the months the money arrives. An exception to the exchange rate calculation is SS which is paid directly to our bank account so just report the total of amounts received.
#10
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Re: does UK have anything like Fbar or 8938?
Same goes for the US pension accounts.
since I pay both IRS and HMRC taxes on that US income I use foreign tax credits to claim back the HMRC tax using IRS form 1116, with the box checked labeled “Resourced by Treaty” because otherwise US income would not be counted as foreign income.
#11
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Re: does UK have anything like Fbar or 8938?
Correct, I just declare the dividend and capital gains distributions from my US brokerage accounts, I don’t report any balances.
Same goes for the US pension accounts.
since I pay both IRS and HMRC taxes on that US income I use foreign tax credits to claim back the HMRC tax using IRS form 1116, with the box checked labeled “Resourced by Treaty” because otherwise US income would not be counted as foreign income.
Same goes for the US pension accounts.
since I pay both IRS and HMRC taxes on that US income I use foreign tax credits to claim back the HMRC tax using IRS form 1116, with the box checked labeled “Resourced by Treaty” because otherwise US income would not be counted as foreign income.
#12
Re: does UK have anything like Fbar or 8938?
I certainly didn't declare the existence of my 403(b) to HMRC until I started receiving income from it, in the 2016-2017 tax year. The Men in Black haven't knocked at my door yet, so I'm guessing everything is OK.
#13
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Re: does UK have anything like Fbar or 8938?
If we were not declaring income I don't know that there even is a form simply for stating balances of foreign accounts. The only time HMRC would be interested in account balances is when claiming benefits, and when you die to determine inheritance tax.