Dual Citizen moving to the UK
#16
Re: Dual Citizen moving to the UK
With all due respect you sound more than a little patronizing.
NSS
"Trust me". Seriously? .... see my first comment, above
You're just guessing and basing advice on speculations is likely pointless.
This is a Web forum, and the only thing that makes sense in complex situations like this is to give some general advice and principles as to what is likely and then leave the details to a professional, but my advice above holds - if the OP is living and working in the UK* but being paid by two companies then all his pay will be taxed in the UK, and UK payroll taxes must by paid by the employer. Conversely if he was paid in part in the US and US payroll taxes paid (for which there is no liability) on that part then the OP's employers will create an unholy mess of taxes and would likely leave the OP with a tax liability in the UK.
As a US citizen the OP will still have to complete a US tax return even if he relocates his entire existence, including investments, to the UK.
* If the OP'S work is carried out partly in the UK and partly in the US then the situation may become much more complicated.
As he is a dual US/UK citizen who will be working for a substantial part of the year, or longer, in the UK he will have to complete tax returns in each country, full stop!
It sounds like your employer needs tax advice as much as you do - by trying to pay you on payrolls in two countries they are making what is already a complex situation, massively more so. It is usual under this type of situation for the employer to use one payroll* and then have an inter-company book transfer for the foreign company to reimburse the company in the UK.
* If taxable work is also being performed in the US then there may still be a need to use a US payroll for some of his pay.
.... it's much more complicated than this, ....
.... residency for tax purposes needs to be determined and that isn't always as clear cut as it sounds in this situation trust me. .....
.... In addition to this it's about all your possible sources of income, not just that which you receive from your employer. Given the OPs situation it sounds likely they may be spending time travelling between the two .....
This is a Web forum, and the only thing that makes sense in complex situations like this is to give some general advice and principles as to what is likely and then leave the details to a professional, but my advice above holds - if the OP is living and working in the UK* but being paid by two companies then all his pay will be taxed in the UK, and UK payroll taxes must by paid by the employer. Conversely if he was paid in part in the US and US payroll taxes paid (for which there is no liability) on that part then the OP's employers will create an unholy mess of taxes and would likely leave the OP with a tax liability in the UK.
As a US citizen the OP will still have to complete a US tax return even if he relocates his entire existence, including investments, to the UK.
* If the OP'S work is carried out partly in the UK and partly in the US then the situation may become much more complicated.
It sounds like your employer needs tax advice as much as you do - by trying to pay you on payrolls in two countries they are making what is already a complex situation, massively more so. It is usual under this type of situation for the employer to use one payroll* and then have an inter-company book transfer for the foreign company to reimburse the company in the UK.
* If taxable work is also being performed in the US then there may still be a need to use a US payroll for some of his pay.
Last edited by Pulaski; Jul 12th 2017 at 1:30 pm.
#17
Forum Regular
Joined: Jun 2017
Posts: 30
Re: Dual Citizen moving to the UK
With all due respect you sound more than a little patronizing.NSS"Trust me". Seriously? .... see my first comment, above
You're just guessing and basing advice on speculations is likely pointless.
This is a Web forum, and the only thing that makes sense in complex situations like this is to give some general advice and principles as to what is likely and then leave the details to a professional, but my advice above holds - if the OP is living and working in the UK* but being paid by two companies then all his pay will be taxed in the UK, and UK payroll taxes must by paid by the employer. Conversely if he was paid in part in the US and US payroll taxes paid (for which there is no liability) on that part then the OP's employers will create an unholy mess of taxes and would likely leave the OP with a tax liability in the UK.
As a US citizen the OP will still have to complete a US tax return even if he relocates his entire existence, including investments, to the UK.
* If the OP'S work is carried out partly in the UK and partly in the US then the situation may become much more complicated.
As he is a dual US/UK citizen who will be working for a substantial part of the year, or longer, in the UK he will have to complete tax returns in each country, full stop!
You're just guessing and basing advice on speculations is likely pointless.
This is a Web forum, and the only thing that makes sense in complex situations like this is to give some general advice and principles as to what is likely and then leave the details to a professional, but my advice above holds - if the OP is living and working in the UK* but being paid by two companies then all his pay will be taxed in the UK, and UK payroll taxes must by paid by the employer. Conversely if he was paid in part in the US and US payroll taxes paid (for which there is no liability) on that part then the OP's employers will create an unholy mess of taxes and would likely leave the OP with a tax liability in the UK.
As a US citizen the OP will still have to complete a US tax return even if he relocates his entire existence, including investments, to the UK.
* If the OP'S work is carried out partly in the UK and partly in the US then the situation may become much more complicated.
As he is a dual US/UK citizen who will be working for a substantial part of the year, or longer, in the UK he will have to complete tax returns in each country, full stop!
If you actually read the OPs later posts he is going to be in a situation where he is on US and UK payroll which is exactly the situation I am in which is why I can comment with some personal knowledge and to your own comment yes makes things much more complicated - I can say trust me I am in that situation myself and it's taken hours and hours of my time working with my accountants to make sure I get it right. My only actual advice was not to go ahead without seeking advice from a professional. I'm going to leave this site because I'm not interested in being spoken to so rudely.
#18
Re: Dual Citizen moving to the UK
... If you actually read the OPs later posts he is going to be in a situation where he is on US and UK payroll ....
#19
Re: Dual Citizen moving to the UK
I would aim to get started early, soon after you arrive, and plan to take your first test after about four months, which will give you plenty of time to take the test again (the fail rate is about 50%, every time you take the test - so there is a 25% chance you'll fail twice), perhaps two or three times (you have to wait a month between tests). .... And if you take your test in an automatic car your licence will only be valid for driving automatic vehicles.
Last edited by Pulaski; Jul 12th 2017 at 2:15 pm.
#20
Re: Dual Citizen moving to the UK
I have been searching a lot of the forums and can't find anything specific to my situation (surprisingly)
I am a dual citizen (US/UK) and just got a promotion to head our expansion to the UK. I will be receiving a salary from both the US and UK, I am still heavily involved in our US operations, and I'm confused how tax works.
Company A is in the US.
Company B is in the UK.
Do I file Company A and B both as US income, or do I file Company A in the US as a US citizen and Company B in the UK as a UK citizen.
Also, does anyone have any recommendations on car insurance companies for UK Citizens driving on a US drivers license?
I am a dual citizen (US/UK) and just got a promotion to head our expansion to the UK. I will be receiving a salary from both the US and UK, I am still heavily involved in our US operations, and I'm confused how tax works.
Company A is in the US.
Company B is in the UK.
Do I file Company A and B both as US income, or do I file Company A in the US as a US citizen and Company B in the UK as a UK citizen.
Also, does anyone have any recommendations on car insurance companies for UK Citizens driving on a US drivers license?
#21
Just Joined
Joined: Jul 2017
Location: UK
Posts: 21
Re: Dual Citizen moving to the UK
I have been searching a lot of the forums and can't find anything specific to my situation (surprisingly)
I am a dual citizen (US/UK) and just got a promotion to head our expansion to the UK. I will be receiving a salary from both the US and UK, I am still heavily involved in our US operations, and I'm confused how tax works.
Company A is in the US.
Company B is in the UK.
Do I file Company A and B both as US income, or do I file Company A in the US as a US citizen and Company B in the UK as a UK citizen.
Also, does anyone have any recommendations on car insurance companies for UK Citizens driving on a US drivers license?
I am a dual citizen (US/UK) and just got a promotion to head our expansion to the UK. I will be receiving a salary from both the US and UK, I am still heavily involved in our US operations, and I'm confused how tax works.
Company A is in the US.
Company B is in the UK.
Do I file Company A and B both as US income, or do I file Company A in the US as a US citizen and Company B in the UK as a UK citizen.
Also, does anyone have any recommendations on car insurance companies for UK Citizens driving on a US drivers license?
https://www.keithmichaels.co.uk/spec...car-insurance/
Good Luck
#22
BE Forum Addict
Joined: Jul 2003
Location: Finally moving!
Posts: 1,236
Re: Dual Citizen moving to the UK
You will be employed and paid and taxed for working and living in the UK. You need professional advice as to whether money paid in the US is taxed or tax free in the UK. That depends on what the money is "payment for". Is it for example payment for services currently being rendered? Or is it a retainer to remain on company books in the US with a view to returning there one day in the distant future? Is it a loan that will be forgiven if you fulfill certain conditions but must be repaid if you don't? The difference may or may not be crucial, only a professional American tax adviser with double taxation agreement experience can advise.
It may be that the tax you pay in the UK on your UK income provides double taxation relief in the US on your worldwide income such that you end up owing no tax at all in the USA! Lots of Yanks have arranged things that way.
The bottom line is
1. It is all very complicated you need professional advice.
2. If you potentially have large incomes in both US and UK then the total amount of tax owed may vary by a huge sum depending on how you and your employer arranges your affairs.
There are no easy answers.
#23
BE Forum Addict
Joined: Aug 2013
Location: Eee Bah Gum
Posts: 4,131
Re: Dual Citizen moving to the UK
For 6 years I was living in the USA where most of my salary was paid into my US bank, and part was paid into my UK bank from which my pension and NI contributions were taken.
I was required to keep a diary of time spent in the UK, both business and personal.
The company provided specialist tax accountants to handle my taxes. It's complicated.
I was required to keep a diary of time spent in the UK, both business and personal.
The company provided specialist tax accountants to handle my taxes. It's complicated.