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Dual UK/USA citizen moving to New York

Dual UK/USA citizen moving to New York

Old Oct 23rd 2011, 8:50 pm
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Talking Dual UK/USA citizen moving to New York

Hi all,

I was born in the USA and stayed for around 1 year before moving to the UK. I have been in the UK since, but I have always renewed my American passport. I have both a British and American passport. Both my parents are British.

I have recently been offered a job by a British company to work in their New York office. I have a few questions regarding this:

1. Can I move to and work in New York right now? Do I need any form of visa?

2. Do I need to pay US tax if I am being paid by a British company and being taxed in the UK?

3. Would it be best to be paid in to my UK bank account and transfer money to an American bank account myself. Or should I get paid directly in to an American bank account? What would be the best in terms of reducing exchange rate fees etc?

4. Are there any UK bank accounts that allow free cash withdrawals in the USA (no charges)?

Many Thanks,
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Old Oct 23rd 2011, 9:01 pm
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Default Re: Dual UK/USA citizen moving to New York

Originally Posted by tfc3000 View Post
Hi all,

I was born in the USA and stayed for around 1 year before moving to the UK. I have been in the UK since, but I have always renewed my American passport. I have both a British and American passport. Both my parents are British.

I have recently been offered a job by a British company to work in their New York office. I have a few questions regarding this:

1. Can I move to and work in New York right now? Do I need any form of visa?

2. Do I need to pay US tax if I am being paid by a British company and being taxed in the UK?

3. Would it be best to be paid in to my UK bank account and transfer money to an American bank account myself. Or should I get paid directly in to an American bank account? What would be the best in terms of reducing exchange rate fees etc?

4. Are there any UK bank accounts that allow free cash withdrawals in the USA (no charges)?

Many Thanks,
Hello and welcome to BE.

1. Yes.

2. Yes. As a USC you should have been filing a US tax return every year and disclosing all foreign accounts (accounts out of the US) totalling more than $10K at any one time during the year.

3. Probably best to be paid in US $ straight into a US bank account...but that's up to you.

4. Sorry don't know the answer to that question.

Are you male or female and what age are you? USC males are required to sign up for the Selective Service System.

Last edited by Jerseygirl; Oct 23rd 2011 at 9:04 pm.
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Old Oct 23rd 2011, 9:13 pm
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Default Re: Dual UK/USA citizen moving to New York

2. Yes. As a USC you should have been filing a US tax return every year and disclosing all foreign accounts (accounts out of the US) totalling more than $10K at any one time during the year.
Whoops! Really? What about if I have never had more than $5000 combined in any of my British accounts? Do I still need to declare?

Are you male or female and what age are you? USC males are required to sign up for the Selective Service System.
26 and male. Awesome! Does that mean they are going to send me to Afghanistan?
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Old Oct 23rd 2011, 9:35 pm
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Default Re: Dual UK/USA citizen moving to New York

Originally Posted by tfc3000 View Post
Whoops! Really? What about if I have never had more than $5000 combined in any of my British accounts? Do I still need to declare?



26 and male. Awesome! Does that mean they are going to send me to Afghanistan?
You should have been filing a US tax return every year. You don't have to bother declaring overseas accounts unless the total is over $10K...so it sounds as if you're OK there.

No doubt someone with more knowledge than I will come along shortly to advise you about the tax returns and SS.

Forgot ...congratulations on the job offer.
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Old Oct 23rd 2011, 10:08 pm
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Default Re: Dual UK/USA citizen moving to New York

Originally Posted by tfc3000 View Post
4. Are there any UK bank accounts that allow free cash withdrawals in the USA (no charges)?
Barclays at any BWank of America.
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Old Oct 23rd 2011, 10:27 pm
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Default Re: Dual UK/USA citizen moving to New York

I believe failure to register for Selective Service would only be a problem if you wanted to get a job with the federal government or wanted a federal student loan. Doesn't sound like either is likely to apply to you.

Also, it may be that you weren't required to register at all if you never lived in the US between the ages of 18 and 26.
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Old Oct 23rd 2011, 10:31 pm
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Default Re: Dual UK/USA citizen moving to New York

Originally Posted by Jerseygirl View Post
You should have been filing a US tax return every year. You don't have to bother declaring overseas accounts unless the total is over $10K...so it sounds as if you're OK there.

No doubt someone with more knowledge than I will come along shortly to advise you about the tax returns and SS.

Forgot ...congratulations on the job offer.
That's filing taxes since working though surely, not since birth!?
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Old Oct 23rd 2011, 10:38 pm
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Default Re: Dual UK/USA citizen moving to New York

US citizens and residents are taxed on worldwide income but have earned income exclusions and tax credits that usually offset any tax liability when not working in the US. You are supposed to file a return every year unless your income was below the minimum required.

Whether you are paid out of the UK or US, you will be liable for US federal and state income taxes if working in the US and in that case, any UK taxes paid on income will not be able to be used to offset US taxes owed for income (US is first in line for taxes for anyone working in the US). You employer is also liable for their share of taxes for any employee working in the US (FICA, unemployment premiums, etc.)

Last edited by Michael; Oct 23rd 2011 at 10:41 pm.
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Old Oct 23rd 2011, 10:56 pm
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Default Re: Dual UK/USA citizen moving to New York

Originally Posted by tfc3000 View Post

1. Can I move to and work in New York right now? Do I need any form of visa?

2. Do I need to pay US tax if I am being paid by a British company and being taxed in the UK?

3. Would it be best to be paid in to my UK bank account and transfer money to an American bank account myself. Or should I get paid directly in to an American bank account? What would be the best in terms of reducing exchange rate fees etc?

4. Are there any UK bank accounts that allow free cash withdrawals in the USA (no charges)?

Many Thanks,
1. You are a US citizen with a right to enter the United States. The passport will do the trick.

2. There will be several changes in the US Income Tax returns you have been filing once you start residence and work in the US. You will loose the automatic extension of the filing deadline and the annual return will be due by April 15th of the following year. Also, you will not have the overseas earned income deduction.

3. Not knowing the details, but I doubt very much that your employer will avoid the obligations imposed on US employers on US income tax withholding and contributions towards us Social Security and Unemployment Taxes. Also, there will probably be an obligation by the employer on state taxes. Having resided in the UK, you were not subject to state taxes until now.

4. On the bank accounts, on a US bank account you will no longer have to convert the interest payments into US dollars to report to Internal Revenue Service. You will be able to lift that amounts on the "1099" report which the banks file with government and give you a copy of.
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Old Oct 24th 2011, 12:08 am
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Default Re: Dual UK/USA citizen moving to New York

Originally Posted by nethead View Post
That's filing taxes since working though surely, not since birth!?
It's filing taxes for any year in which you had income above the threshold at which you are required to file - most people would not hit that threshold until they began working.
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Old Oct 24th 2011, 3:25 am
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Default Re: Dual UK/USA citizen moving to New York

If you're working for the US offices, you'll be a US employee surely? So you'll get paid and taxed just like any other phleb in the office...and hopefully be getting medical insurance taken care of, which realistically is probably your biggest concern tbh.
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Old Oct 24th 2011, 7:21 am
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Default Re: Dual UK/USA citizen moving to New York

Originally Posted by tfc3000 View Post
2. Do I need to pay US tax if I am being paid by a British company and being taxed in the UK?
Could you imagine if London was filled with 1,000,000 people who all said "I'm being taxed overseas so don't charge me UK taxes". Yea, that's not going to fly.

You are taxed, by and large, on where you are physically working, not which bank account you choose to have your paycheck routed through.

A company that hires a person in the USA doesn't just pay that person's salary. They have to pay for unemployment insurance and social security (retirement) contributions, and even possibly health care. So say you hire a person for $50,000 a year salary. The actual cost of the company is more like $54,000 per year when all these taxes are factored in.

Now if your company is going to pay you in the UK, they aren't going to be paying these taxes. Guess who gets to pay the company's share of the taxes? Yup, YOU! You'll have to pay self-employment taxes in addition to the normal taxes you pay each year.

Now if the company pays you in the US, then there is a whole slew of reporting requirements they have to do. They probably have to set up a US affiliate and that entity will have to report all sorts of paper to the government along with paying these taxes and insurance fees.

So basically, getting paid in the UK and taxed in the US kind of sucks for you.
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Old Oct 24th 2011, 10:26 am
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Default Re: Dual UK/USA citizen moving to New York

OK so it would be better to ask the company to pay me in the USA and let the IRS tax me?

What is the tax rate for someone earning $50,000pa in the USA?
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Old Oct 24th 2011, 11:41 am
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Default Re: Dual UK/USA citizen moving to New York

Your take home pay will vary by so many factors we can't answer directly. You should google "paycheck calculator" or "take home calculator" to find some websites that will help. It will depend heavily on what city/state you live in, along with how much you are paying in health insurance. $50k in Manhattan, New York City is not exactly the life of the luxury, fwiw.
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Old Oct 24th 2011, 12:04 pm
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Default Re: Dual UK/USA citizen moving to New York

What does your company have to say about your tax situation? What is the company? If you are working in NY you would normally be paid and taxed like any US resident and not liable for tax in the UK.

Have you been working in the UK? or had any UK accounts? If so I'd see an accountant to make sure your US tax returns are up to date.
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