Severance Pay and moving back to the UK from US
Sep 16th 2018, 9:04 pm
#1
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Severance Pay and moving back to the UK from US
Thinking through my options for possibly moving back to the UK from the US. If my company offered me a severance package which based on length of service would be close to a year of salary what are the tax implications of receiving that severance monthly after I have returned and become resident in the UK? I'm sure the company would still apply any US and State taxes and pay into my current US bank account but I would rather not keep staying in the US just to avoid additional taxes from the UK. Would the UK consider severance payments as income which would be taxable in the UK as well?
Thanks in advance!
Thanks in advance!
Sep 25th 2018, 5:23 pm
#2
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Re: Severance Pay and moving back to the UK from US
Not many responses to this question. Maybe if I craft the question slightly differently. Has anyone had any experience with being paid in the US and paying US federal and state taxes but being physically in the UK. I assume since I would be resident in the UK I would at some point have to pay the Inland Revenue taxes but then could claim these back from the US?
If I returned to the US at the end of the December 2018 would that make any difference to how the UK claims taxes. Would the UK only be interested in taxes for the remained of the UK tax yet Dec - April 2019 or for the whole tax year even if I was in the US ?
Thanks!
If I returned to the US at the end of the December 2018 would that make any difference to how the UK claims taxes. Would the UK only be interested in taxes for the remained of the UK tax yet Dec - April 2019 or for the whole tax year even if I was in the US ?
Thanks!
Sep 25th 2018, 5:54 pm
#3
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Posts: 4,131
Re: Severance Pay and moving back to the UK from US
Not many responses to this question. Maybe if I craft the question slightly differently. Has anyone had any experience with being paid in the US and paying US federal and state taxes but being physically in the UK. I assume since I would be resident in the UK I would at some point have to pay the Inland Revenue taxes but then could claim these back from the US?
If I returned to the US at the end of the December 2018 would that make any difference to how the UK claims taxes. Would the UK only be interested in taxes for the remained of the UK tax yet Dec - April 2019 or for the whole tax year even if I was in the US ?
Thanks!
If I returned to the US at the end of the December 2018 would that make any difference to how the UK claims taxes. Would the UK only be interested in taxes for the remained of the UK tax yet Dec - April 2019 or for the whole tax year even if I was in the US ?
Thanks!
I think the question you have is whether your severance pay is counted in the year you left the company as if it were a lump sum or if the payments you receive over your time in the UK is subject to HMRC taxes. That I have no idea about.
