Should I change my address with my UK Bank to the USA..
#16
Re: Should I change my address with my UK Bank to the USA..
I have a couple of direct debits that I want to keep paying out. One is an F&C investment trust, it's a long term investment i wanted to start and so if i was to cash it in I will lose alot of money because it hasn't had enough time to reap the dividend as it is higher risk. I wanted my monthly contribution to continue (its only about 80$ a month but its an idea I had about just a small bit every month and forget about it, and I've had for 5 years already now and never miss that money).
#17
Re: Should I change my address with my UK Bank to the USA..
Just last week I changed my Natwest account from my parents' UK address to my US address.
#18
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Joined: May 2011
Posts: 34
Re: Should I change my address with my UK Bank to the USA..
I searched F&C investment trust and it's definitely a PFIC, looks like a closed end mutual fund in US terminology. PFICs are bad for US tax residents to own as they do not comply with IRS regulations and filling in the annual tax forms is difficult.....you end up having to "mark to market" ie sell each year and realize your gains so you can declare them to IRS. I don't understand you comments about cashing it in and loosing money. Are there some penalties to selling it? You can invest in similar products in the USA and pay lower fees and have an easier time doing your taxes.
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So it looks like First Direct being with HSBC might be ok with me changing address.
While it looks like i should also consider closing my private investments. I'd like to start something similar in the US but hopefully it won't involve lots of forms to be filed etc. if done there.
For paying my only direct debit of 220 pound per month to student loans, i'm still confused. If transferring via post office is free from my us to uk bank, that makes most sense on the surface, but still alot are plugging xe.com. Perhaps they have preferential exchange rates over the post office that make the fees irrelevant...anyone?
This forum really is wonderful by the way, the searching gets most of my stuff but any post I have made the contribution, input, and support has been fantastic. I've posted on a lot of forums in my time, but this is by no doubt the best for help. Thanks...
#19
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Joined: May 2011
Location: Cambridge, MA
Posts: 24
Re: Should I change my address with my UK Bank to the USA..
Barclays and Barclaycard have so far been entirely happy to change my address on my accounts to my US address, and Barclays were very clear that this would not be a long term problem when I specifically asked about this.
But I've only been here for 2 weeks, so we'll see how long this state of affairs lasts...
But I've only been here for 2 weeks, so we'll see how long this state of affairs lasts...
#20
Re: Should I change my address with my UK Bank to the USA..
Really appreciate the effort Nun to help me . My point in terms of selling it is that I've chosen to buy shares through these funds in a risky portfolio. The idea was i'd just do this for at least 10 years. Therefore for example, if i have now invested 1000 pounds, my actual valuation could be just 650 pounds, although I have a lot of the shares. With me looking more at increasing quantity predicting in the long term I'll actually make a lot more. I'm struggling to explain this myself here, but my worry is cashing it and selling it now is basically going to lose me a couple of hundred pounds or whatever. On the flipside, the difficulty in outsourcing those forms to be filed to the IRS, may leave me no choice...
If you are not you have no chance of filling out the PFIC forms and a CPA will charge you hundreds of pounds to do it for you. So if you are looking at a few hundred pounds in losses don't worry about it. Trust me you do not want to hold PFIC investments as a US tax resident. There are plenty of fantastic places to buy the equivalent of such investments in the US like
http://www.vanguard.com
http://www.fidelity.com
Here is s brief summary of some of the issues with PFICs. It's by an Indian blogger, but its just as applicable for the UK. The most difficult part is actually getting the information and numbers of gains and distributions so you can fill out the IRS forms.....also the fact that the US and UK have different tax years makes the calculations all the harder.
http://www.investmentyogi.com/nri/fo...companies.aspx
#21
Re: Should I change my address with my UK Bank to the USA..
Barclays and Barclaycard have so far been entirely happy to change my address on my accounts to my US address, and Barclays were very clear that this would not be a long term problem when I specifically asked about this.
But I've only been here for 2 weeks, so we'll see how long this state of affairs lasts...
But I've only been here for 2 weeks, so we'll see how long this state of affairs lasts...
#22
Re: Should I change my address with my UK Bank to the USA..
I'm coming in on a Green Card as a child of a US citizen. I've taken a permanent position, the only way it would be temporary is if i decide i do not like being an ex pat and wished to give up my greencard and return to the UK. Which would only happen I forsee in an exterme circumstance. I've worked at sea the past year being away from friends and family plus univserity so acustomed to living away; and have also stayed in Seattle for a month doing the job itself so i have an idea so for now i'm thinking at least 2-3 years in Seattle and promotion aspects could mean for life...at 22 i have no real idea still :P
Read the links at the bottom, especially the Welcome to America one; you'll find it helpful.
It might also help you to know that most of the expats in the Pacific NW are really contented with this corner of the country.
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This forum really is wonderful by the way, the searching gets most of my stuff but any post I have made the contribution, input, and support has been fantastic. I've posted on a lot of forums in my time, but this is by no doubt the best for help. Thanks...
#23
Re: Should I change my address with my UK Bank to the USA..
OP if you keep the F&G Investment Trust you'll have to file form 8621 with your taxes. FYI here are the instructions, the form and some more wise words about PFIC. As you can see I'm strongly urging you not to own a PFIC. Not many tax experts know about this section of the IRS code so it's an area where you have to know something yourself to gauge if the CPA you employ knows what they are talking about. Doing it yourself would be quite a task. Happy reading.
http://www.irs.gov/instructions/i8621/ch01.html
http://www.irs.gov/pub/irs-pdf/f8621.pdf
http://www.rpifs.com/offshoretax/otpfic.htm
http://www.irs.gov/instructions/i8621/ch01.html
http://www.irs.gov/pub/irs-pdf/f8621.pdf
http://www.rpifs.com/offshoretax/otpfic.htm
Last edited by nun; Jun 17th 2011 at 2:53 am.
#24
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Joined: Apr 2011
Location: Ohio
Posts: 1,834
Re: Should I change my address with my UK Bank to the USA..
Should be fine - we bank with FD and moved from the UK to Switzerland some years ago (and US later this year) and they were fine about us having an overseas address. All cards and letters are sent here (don't get paper statements); the only difference is that you phone the International team on a different number and use a code they give you rather than your postcode as the initial ID.
#25
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Joined: May 2011
Posts: 34
Re: Should I change my address with my UK Bank to the USA..
Should be fine - we bank with FD and moved from the UK to Switzerland some years ago (and US later this year) and they were fine about us having an overseas address. All cards and letters are sent here (don't get paper statements); the only difference is that you phone the International team on a different number and use a code they give you rather than your postcode as the initial ID.
I have closed my ISA and got a cheque for 9k pounds.
I will cash in my F&C investment and close that which will probably be about 2k (only did 50 a month as being a poor student!:P)
I will change my address with FD to the USA.
I will transfer money once I have a US bank account. And leave just under 10k dollars in my UK account for direct debits for my student loan monthly payments of 200.
Then each time it nears it's limit I'll transfer another batch of under 10k$ either via XE.com or the Post Office banking system bank to bank (still not sure which to use out of these two).
I notice on the customs form you have to put down if you take in cash over 10k$, I was considering perhaps taking a lump sum to avoid charges etc. maybe 8k$ in my hand luggage (on me physically). Would anyone recommend this, would it look at all dodgy with going in as a new immigrant if they found it?
The only other thing on my list now is that I don't start my US contract until September 2011. I will get my Visa (should anyway..) on Monday in the embassy. From that date I will receive two (maybe 3) pay cheques for July and August, possibly September as well.
As this will go to my UK bank account I need to figure out how I pay the IRS on this salary the relevant tax. Is those type of forms fairly easy to fill in or am I best outsourcing it? Do not want to get into any tax troubles over there.
I'm not sure how much I'd be liable to pay, as I pay 0% tax here in the UK as a seafarer out of the country for 243 days of the year, but that doesn't count in the states...(just UK rules only)
#26
Re: Should I change my address with my UK Bank to the USA..
I notice on the customs form you have to put down if you take in cash over 10k$, I was considering perhaps taking a lump sum to avoid charges etc. maybe 8k$ in my hand luggage (on me physically). Would anyone recommend this, would it look at all dodgy with going in as a new immigrant if they found it?
#27
Re: Should I change my address with my UK Bank to the USA..
Thanks,
I have closed my ISA and got a cheque for 9k pounds.
I will cash in my F&C investment and close that which will probably be about 2k (only did 50 a month as being a poor student!:P)
I will change my address with FD to the USA.
I will transfer money once I have a US bank account. And leave just under 10k dollars in my UK account for direct debits for my student loan monthly payments of 200.
Then each time it nears it's limit I'll transfer another batch of under 10k$ either via XE.com or the Post Office banking system bank to bank (still not sure which to use out of these two).
I have closed my ISA and got a cheque for 9k pounds.
I will cash in my F&C investment and close that which will probably be about 2k (only did 50 a month as being a poor student!:P)
I will change my address with FD to the USA.
I will transfer money once I have a US bank account. And leave just under 10k dollars in my UK account for direct debits for my student loan monthly payments of 200.
Then each time it nears it's limit I'll transfer another batch of under 10k$ either via XE.com or the Post Office banking system bank to bank (still not sure which to use out of these two).
In the US take advantage of any retirement accounts your company offers like 401ks etc. These allow you to save money before tax and there is usually an employer contribution too. The money grows tax free and you can take it out when you retire. Also research ROTHs. I admire your regular investing with F&C so continue that with a company like Vanguard.
The only other thing on my list now is that I don't start my US contract until September 2011. I will get my Visa (should anyway..) on Monday in the embassy. From that date I will receive two (maybe 3) pay cheques for July and August, possibly September as well.
As this will go to my UK bank account I need to figure out how I pay the IRS on this salary the relevant tax. Is those type of forms fairly easy to fill in or am I best outsourcing it? Do not want to get into any tax troubles over there.
I'm not sure how much I'd be liable to pay, as I pay 0% tax here in the UK as a seafarer out of the country for 243 days of the year, but that doesn't count in the states...(just UK rules only)
For your US job tax will be with held by your employer. You'll get a W2 form at the end of the year with your salary and tax paid that you enter into you 1040 form for the IRS. There are lots of credits and deductions so you may end up getting some money back. Many people do their own taxes using software like Turbotax.
Remember to apply to pay Class 2 voluntary NI once you are abroad. It's just over a hundred pounds for the entire year and that keeps your UK basic state pension payments up to date. Also what are you doing for health insurance?
Last edited by nun; Jun 18th 2011 at 3:30 pm.
#28
Re: Should I change my address with my UK Bank to the USA..
The only other thing on my list now is that I don't start my US contract until September 2011. I will get my Visa (should anyway..) on Monday in the embassy. From that date I will receive two (maybe 3) pay cheques for July and August, possibly September as well.
As this will go to my UK bank account I need to figure out how I pay the IRS on this salary the relevant tax. Is those type of forms fairly easy to fill in or am I best outsourcing it? Do not want to get into any tax troubles over there.
As this will go to my UK bank account I need to figure out how I pay the IRS on this salary the relevant tax. Is those type of forms fairly easy to fill in or am I best outsourcing it? Do not want to get into any tax troubles over there.
Matt becomes a US Permanent Resident (and tax resident) on the day he first enters the US with that Immigrant Visa.. not before. However, IIRC he will have to declare all worldwide income for calendar 2011.
Matt, you should definitely get professional tax help your first year.
#29
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Thread Starter
Joined: May 2011
Posts: 34
Re: Should I change my address with my UK Bank to the USA..
Posts seem to indicate that matt will be interviewing for an Immigrant Visa on Monday. (Matt.. you will not get your visa that day, takes about a week to get delivered to you post interview)
Matt becomes a US Permanent Resident (and tax resident) on the day he first enters the US with that Immigrant Visa.. not before. However, IIRC he will have to declare all worldwide income for calendar 2011.
Matt, you should definitely get professional tax help your first year.
Matt becomes a US Permanent Resident (and tax resident) on the day he first enters the US with that Immigrant Visa.. not before. However, IIRC he will have to declare all worldwide income for calendar 2011.
Matt, you should definitely get professional tax help your first year.
I currently do have someone here who deals with that for me, a company called SeaTax, they send all relevant documents to show I do not have to pay tax here in the UK. I may see if they can also fill in a P85 for me which is for leaving the country etc.
Although I have no idea on the coverage, everyone says it is a good deal who are there with my company in terms of provided health coverage and also a 401k. Although I cannot sign up to the 401k until January.
Hopefully it won't cost me too much to have my tax return done for the first year, I guess I probably would try and get that done around January time also.
Once after my first year is complete and all done with my previous ties cut I guess its all just done through my employment out of my payslip like normal.
I also have 1k in Aviva Pension over the past 10 months, I need to call to see if that is transferrable to the USA or if I can cash it in. If so i guess for a much lower price so may be best to keep it...
Thanks again for the help everyone.
And the confusion in terms of employment start is again due to taxation issues but that is with the UK.
As a seafarer I have to be out for 243 days in a 365 day year. I've not done 365 days yet, so if i stopped that in July, I would have to pay all the tax for those previous months (around 6k). I wasn't willing to pay that and so my employer will keep me on the old contract and sea assignments until September.
Therefore I will enter the US and become an immigrant in July, be paid to the Uk for 2-3 months and then switchover to a nice simple US standard office type permanent contract.
Which means in April I figure to the IRS I would have to say I made e.g. 1000 pound a month for 3 months, so I owe x% of 3000 on top of what i've already paid. I dont think i can cost in UK tax off it e.g. pay only the difference between UK and US tax, because I don't pay tax whatsoever here.
Lol never an easy story...
#30
Forum Regular
Thread Starter
Joined: May 2011
Posts: 34
Re: Should I change my address with my UK Bank to the USA..
Yes, the more I am reading in to this the more it seems I may have to seek professional help.
I currently do have someone here who deals with that for me, a company called SeaTax, they send all relevant documents to show I do not have to pay tax here in the UK. I may see if they can also fill in a P85 for me which is for leaving the country etc.
Although I have no idea on the coverage, everyone says it is a good deal who are there with my company in terms of provided health coverage and also a 401k. Although I cannot sign up to the 401k until January.
Hopefully it won't cost me too much to have my tax return done for the first year, I guess I probably would try and get that done around January time also.
Once after my first year is complete and all done with my previous ties cut I guess its all just done through my employment out of my payslip like normal.
I also have 1k in Aviva Pension over the past 10 months, I need to call to see if that is transferrable to the USA or if I can cash it in. If so i guess for a much lower price so may be best to keep it...
Thanks again for the help everyone.
And the confusion in terms of employment start is again due to taxation issues but that is with the UK.
As a seafarer I have to be out for 243 days in a 365 day year. I've not done 365 days yet, so if i stopped that in July, I would have to pay all the tax for those previous months (around 6k). I wasn't willing to pay that and so my employer will keep me on the old contract and sea assignments until September.
Therefore I will enter the US and become an immigrant in July, be paid to the Uk for 2-3 months and then switchover to a nice simple US standard office type permanent contract.
Which means in April I figure to the IRS I would have to say I made e.g. 1000 pound a month for 3 months, so I owe x% of 3000 on top of what i've already paid. I dont think i can cost in UK tax off it e.g. pay only the difference between UK and US tax, because I don't pay tax whatsoever here.
Lol never an easy story...
I currently do have someone here who deals with that for me, a company called SeaTax, they send all relevant documents to show I do not have to pay tax here in the UK. I may see if they can also fill in a P85 for me which is for leaving the country etc.
Although I have no idea on the coverage, everyone says it is a good deal who are there with my company in terms of provided health coverage and also a 401k. Although I cannot sign up to the 401k until January.
Hopefully it won't cost me too much to have my tax return done for the first year, I guess I probably would try and get that done around January time also.
Once after my first year is complete and all done with my previous ties cut I guess its all just done through my employment out of my payslip like normal.
I also have 1k in Aviva Pension over the past 10 months, I need to call to see if that is transferrable to the USA or if I can cash it in. If so i guess for a much lower price so may be best to keep it...
Thanks again for the help everyone.
And the confusion in terms of employment start is again due to taxation issues but that is with the UK.
As a seafarer I have to be out for 243 days in a 365 day year. I've not done 365 days yet, so if i stopped that in July, I would have to pay all the tax for those previous months (around 6k). I wasn't willing to pay that and so my employer will keep me on the old contract and sea assignments until September.
Therefore I will enter the US and become an immigrant in July, be paid to the Uk for 2-3 months and then switchover to a nice simple US standard office type permanent contract.
Which means in April I figure to the IRS I would have to say I made e.g. 1000 pound a month for 3 months, so I owe x% of 3000 on top of what i've already paid. I dont think i can cost in UK tax off it e.g. pay only the difference between UK and US tax, because I don't pay tax whatsoever here.
Lol never an easy story...