H1b and UK tax
#16
Re: H1b and UK tax
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?
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?
It's admirable that your doing all this research for your friend.
#17
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Re: H1b and UK tax
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.
#18
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..
That always helps people understand the process and the issues..
#19
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Re: H1b and UK tax
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
#20
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..)
And I often hike in Death Valley.
(I used to work for Adobe..that's how I came here..)
#21
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Re: H1b and UK tax
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
#23
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.
#25
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Re: H1b and UK tax
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...
#26
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.
He is a resident for tax purposes in the US, therefore he isn't resident in the UK anymore.
#27
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Re: H1b and UK tax
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...
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...
#28
Re: H1b and UK tax
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...
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...
Did your friend apply to HMRC to be a non-resident landlord?
#29
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.
#30
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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?
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?