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H1b and UK tax

H1b and UK tax

Old Feb 1st 2015, 3:20 am
  #16  
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Default Re: H1b and UK tax

Originally Posted by livinginUSA
That the thing - there is a difference between tax resident, and immigration law resident - well said.

At this point, unless he has some UK tie he hasn't mentioned, it sounds like he, like everyone here, wouldn't need to file a self assessment as it wouldn't be required, right?
Right.

It's admirable that your doing all this research for your friend.
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Old Feb 1st 2015, 3:27 am
  #17  
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Default Re: H1b and UK tax

Originally Posted by Hotscot
Right.

It's admirable that your doing all this research for your friend.
Cheers - Well, it's a bit of both really - helping him, and helping myself realize that I have done everything correctly by not filing self assessment/any UK tax since moving.

I do want to make sure he isn't putting a lot of time and stress into something that's not required. I remember years ago when I moved to the U.S. I wish I had someone to help me and tell me what to do (hence why I filed my p85 later than I should haha) and I know how stressful immigration can be without adding tax concerns on top of that.

It's kinda like this forum really - it's good to talk and to help people out where possible.
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Old Feb 1st 2015, 3:30 am
  #18  
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Default Re: H1b and UK tax

What do you do, where are you living, and what was your route in getting here?
That always helps people understand the process and the issues..
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Old Feb 1st 2015, 3:38 am
  #19  
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Default Re: H1b and UK tax

Originally Posted by Hotscot
What do you do, where are you living, and what was your route in getting here?
That always helps people understand the process and the issues..
For me? Software Dev, live in Las Vegas, and I came here through a K1 visa, and have my 10 year permanent resident card.

My friend is also a Software Dev, lives in Vegas too, and is here on H1b. He mentioned going for an employment based green card
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Old Feb 1st 2015, 4:17 am
  #20  
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Default Re: H1b and UK tax

Cool..we sometimes come out to the Hard Rock for gigs..saw London Grammar recently, and Ellie Goulding. We know some good Indian Restaurants there..

And I often hike in Death Valley.

(I used to work for Adobe..that's how I came here..)
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Old Feb 1st 2015, 4:23 am
  #21  
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Default Re: H1b and UK tax

Originally Posted by Hotscot
Cool..we sometimes come out to the Hard Rock for gigs..saw London Grammar recently, and Ellie Goulding. We know some good Indian Restaurants there..

And I often hike in Death Valley.

(I used to work for Adobe..that's how I came here..)
Nice! I saw Ellie at Coachella last year - she was great!

Let us know what Indian Restaurants you like - we haven't found one yet... We only moved here in July after living in San Francisco. I used to hang out at the Adobe offices in SF! Great place
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Old Feb 1st 2015, 4:34 am
  #22  
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Default Re: H1b and UK tax

I believe this is the one that we liked most...

Taj Palace - Indian Cuisine Fit For Royalty
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Old Feb 1st 2015, 4:22 pm
  #23  
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Default Re: H1b and UK tax

How does you friend file US taxes? 1040 or 1040NR? People on H1bs are usually classed as resident aliens.

Last edited by nun; Feb 1st 2015 at 5:08 pm.
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Old Feb 1st 2015, 5:24 pm
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Default Re: H1b and UK tax

Originally Posted by nun
How does you friend file US taxes? 1040 or 1040NR? People on H1bs are usually classed as resident aliens.
Good question - I don't know. I actually don't have any real knowledge of how H1b's work regarding tax.
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Old Feb 2nd 2015, 8:29 pm
  #25  
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Default Re: H1b and UK tax

Originally Posted by Hotscot
Right.

It's admirable that your doing all this research for your friend.
I spoke to him again today, and it turns out he does have a house back in the UK that he rents out. Which explains why he files.

He still lists and declares his US income on his SA though, but doesn't pay any tax on it he says. He said he would have thought I would have to do the same... But again, like everyone else who seems to be a non-resident, it looks like no one files self assessment unless you have UK income

Back to continuing to not have to file!

I haven't seen a Self Assessment form before, so I am unsure if he actually does have to list his US income...
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Old Feb 2nd 2015, 10:03 pm
  #26  
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Default Re: H1b and UK tax

Can't be bothered to read through it but essentially (a) he severs ties to the UK, the main things being to file a P85 with HMRC and an R105 with any FIs he has accounts with (but there also other things such as closing down ISAs, giving up any other ties HMRC might use to deem him resident such as NHS card, UK DL, etc.) and (b) he files a dual-status return with the IRS for the first year he was in the US as explained in IRS publication 519.

He is a resident for tax purposes in the US, therefore he isn't resident in the UK anymore.
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Old Feb 2nd 2015, 10:33 pm
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Default Re: H1b and UK tax

Originally Posted by livinginUSA
I spoke to him again today, and it turns out he does have a house back in the UK that he rents out. Which explains why he files.

He still lists and declares his US income on his SA though, but doesn't pay any tax on it he says. He said he would have thought I would have to do the same... But again, like everyone else who seems to be a non-resident, it looks like no one files self assessment unless you have UK income

Back to continuing to not have to file!

I haven't seen a Self Assessment form before, so I am unsure if he actually does have to list his US income...
Even while I had a house rented out in the UK I didn't file UK taxes. The house income was reported to the IRS on the 1040
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Old Feb 2nd 2015, 10:57 pm
  #28  
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Default Re: H1b and UK tax

Originally Posted by livinginUSA
I spoke to him again today, and it turns out he does have a house back in the UK that he rents out. Which explains why he files.

He still lists and declares his US income on his SA though, but doesn't pay any tax on it he says. He said he would have thought I would have to do the same... But again, like everyone else who seems to be a non-resident, it looks like no one files self assessment unless you have UK income

Back to continuing to not have to file!

I haven't seen a Self Assessment form before, so I am unsure if he actually does have to list his US income...
Wow, your friend is doing lots of things incorrectly and making life unnecessarily complicated. If the only income your friend has is rent it's rare to have any UK tax liability after the application of expenses and the personal allowance so that no foreign tax credit is required on the US tax forms. None of his/her US income should be on the UK SA.

Did your friend apply to HMRC to be a non-resident landlord?
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Old Feb 3rd 2015, 2:04 am
  #29  
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Default Re: H1b and UK tax

Originally Posted by Steve_
Can't be bothered to read through it but essentially (a) he severs ties to the UK, the main things being to file a P85 with HMRC and an R105 with any FIs he has accounts with (but there also other things such as closing down ISAs, giving up any other ties HMRC might use to deem him resident such as NHS card, UK DL, etc.)
Never heard of HMRC demanding any of these things to establish non-residence, and it would usually not be a good idea to surrender a U.K. driving licence, unless required by a foreign license authority. (although new evidence of licence cannot be obtained). A P85, on its own, is usually sufficient.


and (b) he files a dual-status return with the IRS for the first year he was in the US as explained in IRS publication 519.
Except that it seems he has been in the U.S. for more than a full calendar year.

He is a resident for tax purposes in the US, therefore he isn't resident in the UK anymore.
Not true. Becoming tax resident in another country does not in itself cause loss of tax residence.
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Old Feb 9th 2015, 5:15 pm
  #30  
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Default Re: H1b and UK tax

Just a quick update. I spoke to my friend about talking to HMRC about becoming a non-resident landlord and gave him all the right documentation on the SRT - so hopefully that will be less of a headache for him!

He did have one question - he occasionally puts money into his UK account from his US account (using XE trade?) to pay for small bills (less than £1000 a year) - He wondered if that money then became reportable to HMRC as it's being brought back to the UK.

I would doubt it because as far as I understand non resident rules, it's not UK based income, so he can do what he wants with it while he is a non resident! Any thoughts on that?
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