Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Setting UK Taxes before I leave for USA.

Setting UK Taxes before I leave for USA.

Old Jan 22nd 2012, 2:30 pm
  #1  
Forum Regular
Thread Starter
 
Joined: Nov 2011
Posts: 62
amancalledsun is an unknown quantity at this point
Default Setting UK Taxes before I leave for USA.

Hi,

My wife and I are currently in the process of applying for a spouse visa for me to move to the US. Im currently working my first year as a self employed designer and I may or may not continue to do work self employed when I get to the US. Either way I will have to pay this years tax to the UK. Just really wondering what I need to expect when I get there? Will they need to see previous tax returns? What do I need to tie up here?

Thank you.
amancalledsun is offline  
Old Jan 22nd 2012, 2:37 pm
  #2  
MODERATOR
 
Noorah101's Avatar
 
Joined: Apr 2003
Location: Phoenix, Arizona
Posts: 58,122
Noorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond repute
Default Re: Setting UK Taxes before I leave for USA.

Originally Posted by amancalledsun View Post
Just really wondering what I need to expect when I get there?
When you get to the USA, you mean? Can you be more specific? Do you mean what to expect at the POE? I'm sorry, I'm not following your specific question.

Will they need to see previous tax returns?
Who is "they"? USCIS? IRS?

Are you wondering how to do a US tax return once inside the USA?

Rene
Noorah101 is offline  
Old Jan 22nd 2012, 2:54 pm
  #3  
Forum Regular
Thread Starter
 
Joined: Nov 2011
Posts: 62
amancalledsun is an unknown quantity at this point
Default Re: Setting UK Taxes before I leave for USA.

I don't think I know what the question is myself! haha.
I just want to do things properly with my taxes before I leave for the US and not get myself into any trouble while I'm there.

I have just read i'll need to fill out a p85 form (Leaving the UK - getting your tax right) to let the hmrc know that I intend to live in the US for the foreseeable future. I assume this means I won't have to pay UK tax when I'm there, even though I will be working for some UK companies. I read something a bout a duel taxation agreement? So this means I don't have to fill out taxes for both countries? When I get to the US what do I do and who do I tell? When do I fill out my first tax return there and what will they need to see? Previous tax returns from UK or will that not matter?

Yes thats right, I'm confused and I'm sorry if I'm confusing you too.
amancalledsun is offline  
Old Jan 22nd 2012, 3:39 pm
  #4  
MODERATOR
 
Noorah101's Avatar
 
Joined: Apr 2003
Location: Phoenix, Arizona
Posts: 58,122
Noorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond repute
Default Re: Setting UK Taxes before I leave for USA.

Originally Posted by amancalledsun View Post
I don't think I know what the question is myself! haha.
I just want to do things properly with my taxes before I leave for the US and not get myself into any trouble while I'm there.

I have just read i'll need to fill out a p85 form (Leaving the UK - getting your tax right) to let the hmrc know that I intend to live in the US for the foreseeable future. I assume this means I won't have to pay UK tax when I'm there, even though I will be working for some UK companies. I read something a bout a duel taxation agreement? So this means I don't have to fill out taxes for both countries? When I get to the US what do I do and who do I tell? When do I fill out my first tax return there and what will they need to see? Previous tax returns from UK or will that not matter?

Yes thats right, I'm confused and I'm sorry if I'm confusing you too.
I'm not knowledgeable about the UK portion of it, but US taxes are done on a calendar year basis...so the tax year is Jan 1 through Dec 31. You must file a tax return by April 15 the following year (so by April 15 of 2012 you'll file for the 2011 calendar year). If you can't make the April 15 deadline, you can ask for an extension, but you have to file for an extension first, before missing the deadline.

I highly advise using a CPA (Certified Public Accountant) for your first year's US tax returns, and it would probably be helpful for the CPA to see at least your most recent UK tax return.

You will not have to PAY double tax, no.

Rene
Noorah101 is offline  
Old Jan 22nd 2012, 3:57 pm
  #5  
Forum Regular
Thread Starter
 
Joined: Nov 2011
Posts: 62
amancalledsun is an unknown quantity at this point
Default Re: Setting UK Taxes before I leave for USA.

Thank you so much. Very helpful.
amancalledsun is offline  
Old Jan 23rd 2012, 1:22 am
  #6  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,745
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: Setting UK Taxes before I leave for USA.

In the US, if you're contracting, you do a 1099 tax filing, quarterly, to pay your taxes, if you set up a company and become employed by that company, it changes things...either way, you'll have the employer portion of the taxes to add to what a employed person would regularly pay for the Federal taxes and possibly state taxes.

If you've got any rental in the UK etc, you'll have to still do self assessments, but the P85 apart from letting the inland rev know you've buggered off is to get a tax rebate on any over paid taxes.
Bob is offline  
Old Jan 23rd 2012, 1:40 am
  #7  
nun
BE Forum Addict
 
nun's Avatar
 
Joined: Aug 2004
Posts: 4,722
nun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond reputenun has a reputation beyond repute
Default Re: Setting UK Taxes before I leave for USA.

Are you doing PAYE in the UK now?

The P85 will inform HMRC of your status and intention to be come non-tax resident in the UK. Do you have any investments or pensions etc in the UK. These will complicate your US tax filing.

Are you being employed by a US based firm or will you be self employed in the US. If the latter you will have to make sure you get your payroll correct and pay the required federal and state taxes and also FICA.
nun is offline  
Old Jan 23rd 2012, 1:47 am
  #8  
Forum Regular
Thread Starter
 
Joined: Nov 2011
Posts: 62
amancalledsun is an unknown quantity at this point
Default Re: Setting UK Taxes before I leave for USA.

Thats what I'm here to find out. Im still months away from any move.

Im currently self employed so I file a tax return here in the UK. I have no investments or pensions here either. My plan is to continue as self employed in the US but if I struggle finding new work over there I'm happy to move into employment. I think my best bet is to speak to an accountant when I get there as mentioned above.
amancalledsun is offline  
Old Jan 23rd 2012, 2:17 am
  #9  
MODERATOR
 
Noorah101's Avatar
 
Joined: Apr 2003
Location: Phoenix, Arizona
Posts: 58,122
Noorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond reputeNoorah101 has a reputation beyond repute
Default Re: Setting UK Taxes before I leave for USA.

Originally Posted by amancalledsun View Post
Thats what I'm here to find out. Im still months away from any move.

Im currently self employed so I file a tax return here in the UK. I have no investments or pensions here either. My plan is to continue as self employed in the US but if I struggle finding new work over there I'm happy to move into employment. I think my best bet is to speak to an accountant when I get there as mentioned above.
When you become self-employed in the USA, will it just be you, or will you hire employees? That makes a difference in your tax return. My alien husband is also self-employed, but it's just him doing the work...he works as an independent contractor, repairing antique oriental rugs. Each year, he gets 1099 forms from his clients, showing the amount they've paid him to do work for them. He doesn't have to pay any kind of employee benefit type things.

I keep track of his business income and business expenses on an Excel spreadsheet. At the end of the tax year, I give that to our CPA and she does our tax return. We file "Married fiing jointly". I am also employed, by an employer, so I get the usual W-2 wage statement at the end of the year, which I also give to the CPA.

Rene
Noorah101 is offline  
Old Jul 9th 2012, 3:37 pm
  #10  
Forum Regular
Thread Starter
 
Joined: Nov 2011
Posts: 62
amancalledsun is an unknown quantity at this point
Default Re: Setting UK Taxes before I leave for USA.

Originally Posted by Noorah101 View Post
When you become self-employed in the USA, will it just be you, or will you hire employees? That makes a difference in your tax return. My alien husband is also self-employed, but it's just him doing the work...he works as an independent contractor, repairing antique oriental rugs. Each year, he gets 1099 forms from his clients, showing the amount they've paid him to do work for them. He doesn't have to pay any kind of employee benefit type things.

I keep track of his business income and business expenses on an Excel spreadsheet. At the end of the tax year, I give that to our CPA and she does our tax return. We file "Married fiing jointly". I am also employed, by an employer, so I get the usual W-2 wage statement at the end of the year, which I also give to the CPA.

Rene
Hi Rene, sorry I didn't see this reply.

Sounds like I have a similar set-up as your husband. I won't be employing anybody, it's just me. Think i'll get an accountant to sort out finalising stuff before I leave here and also a US one when I arrive to set me on the right track! Argh taxes!!

Bit off topic here but, any idea how to get paid from clients overseas? Will I be able to keep a bank account open in the UK? I'll look into paypal and the like too.
amancalledsun is offline  
Old Jul 9th 2012, 6:19 pm
  #11  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,745
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: Setting UK Taxes before I leave for USA.

Originally Posted by amancalledsun View Post

Bit off topic here but, any idea how to get paid from clients overseas? Will I be able to keep a bank account open in the UK? I'll look into paypal and the like too.
xe.com or any other exchange service to deal with it, but there are so many threads on sending money around.
Bob is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.