robnewman

It's been a long old time since my last post... so I figured I'd report in "one last time" from the wet and cold side of the pond...

We had our movers in yesterday... The house is now bare.

Our new tennants are coming over to sign the papers on Friday, then on Wednesday next week, we're off!

I even mamaged to get my current employer to agree to keep me on in a "working from home" capacity while I'm in the US... so I will continue to get paid, and despite the fact that the pound has lost ground against the dollar, my UK pay is still VERY nice when converted to dollars...

Everything seems to be working out nicely...


Next you'll hear is from me is me whining and complaining (in true Brit fashion) about things in the US!

Till then... Have a good'un...

Soundman

Hope your move and adjustment go well!!

christmasoompa

Hope it all goes well........and hello from just down the road nr Great Missenden!!

lisa67

Good Luck with the trip over...where are you heading?

Tracym

Hope you have a smooth and safe journey!

robnewman

Thanks all...

We're heading to Richland in Washington State... Nice little desert town... with real, actual cowboys (Ok... they are actually 5 minutes drive away in West Richland).

Not a place you'd initially think of going, but a nice place all the same!

(and it's where our free rent and board will be... the in-laws are dying to have us stay with them for some reason!)

I could just shout out of the window... but I guess replying here is a bit less odd! You planning on making the move yourself any time soon?

sambapink

Best of luck Rob.. I remember the few days after the Movers took all our stuff.. all kinda surreal.. and Yes, its an absolute certainity that you'll be back here complaining about the numerous 'differences' in culture (i'm being kind!)..

Take care and safe journey

TruBrit

staying with the outlaws but only short term surely otherwise it's a recipe for disaster

good luck with the trip btw

chartreuse

First of all, congrats and good luck

A question on the "working from home" thing - if it's not too intrusive? How are you handling taxes, NI etc? Off the top of my head, I can think of two ways of doing it - but I'm not sure if either of them make any sense:
1: your employer deducts at source, you claim it back with a UK return and then pay it on a 1040.
2: Your employer pays you gross, and you declare it on your 1040.

Neither of these really seems right to me, though I'm fairly sure you can't use a 2555 if you're living in the USA, but it's a position I might well be in soon, hence my interest...

robnewman

I have still to determine the best way myself... however my good lady wife is a US tax payer (at least she fills in her IRS forms each year) and she declares what tax she has paid to the UK by submitting her UK pay slips to the IRS... There is aparently an understanding between the US and UK so if you pay tax in the UK, you don't have to in the US...

Of course, with me moving and living in the US, the rules might be different... so I'll have to check it out for certain... I think I'll call the tax office tomorrow...

meauxna

Happy Travels, robnewman!
Will catch you up for some of that wine tasting out there in them boonies also. Welcome to the neighborhood!

chartreuse

Yes, same situation here - it's called the Foreign Earned Income Exclusion. However, as we both suspect, if your in the US that surely won't apply. I might ask the in laws if they know any CPAs....

robnewman

I just did a little research... the link below seems to have some good advice and better yet, it has a bunch of contact numbers to call for dedicated non-resident tax advice.

http://search2.hmrc.gov.uk/kbroker/h...ty1=0&tx1=2020

It looks like we would still pay tax in the UK, but when we submit the UK tax return, we get a refund. It also looks like we can get a refund of national insurance too...

I'll call them tomorrow and hopefully be better informed (I hate all this damn beaurocracy!)

dbj1000

You'll still need to file a US tax return though. You can't claim "foreign earned income exclusion" if you don't declare your foreign earned income.

robnewman

Indeed dbj1000... Now I'll have to file in the US AND the UK... I love paperwork... I think I'm becoming personally responsible for climate change with all the trees I've had cut down for forms and paperwork!

Well, the murky waters become a little clearer...

Apparently, I need to fill in form P85 and return it to my tax office... based upon the answers I give on this form, they will assign me an "NT code" which will mean my pay each month will be gross and not taxable. This is dependant however on me being permanently resident in the US and none of my work duties being in the UK. The tax people then work out any new codes, and if any refund is due.

I also fill in form CA3638 to request a pension forecast... I then get back a pack of information from the National Insurance people which tells me my options... if I've worked long enough in the UK, I will not have to pay any NI contributions. If I've not worked long enough to qialify for full pension status, I can make voluntary contributions whilst overseas. Or I can "transfer" my time worked from the UK to the US Social Security system and continue acruing my pension in the US. Odlly though, I apparently still have to make FULL NI contributions from my pay for the first 52 weeks that I'm overseas. After that, my employer should stop paying it for me.

And finally, as a non-resident landlord, I also need to fill in form NRL1 to request that I receive my rental income as gross and not taxed.

Then every year, I need to submit my self assesment, a UK property income form and a Non Resident form as part of my UK tax return... and these HAVE to be paper copies (can't file online) by the end of October. And of course I then have to do it ALL again in January for the IRS!

I guess setting up a savings account will be a good move... every month just put aside what I normally paid in tax and NI and then let it build up a bit of interest... then pay the IRS what I owe at the end of the year... might even have a bit left over.

Anyway... still clear as mud, but getting there!