Frequently asked questions

If you're a US citizen or Green Card holder, almost certainly yes once your worldwide income passes modest thresholds. The US taxes by citizenship, not residence — living abroad changes which reliefs apply, not whether you file. See our guide to US taxes for Americans abroad for the full picture.

Owing nothing and filing are separate questions. Exclusions, credits and the treaty mean most UK-based Americans owe little or no US tax — but the return, and usually an FBAR, still have to be filed to claim those very reliefs.

It's an annual report of non-US financial accounts, required when their combined highest balances exceed $10,000 at any point in the year. Most Americans with UK bank accounts cross that line. It goes to FinCEN, separately from the tax return, and penalties for ignoring it are severe.

Sometimes. Federal and state obligations are separate, and a few states make it hard to shed residency without clear steps. Whether your former state still has a claim depends on which state and what ties remain — worth settling once, properly.

It does. UK salary is worldwide income for US purposes. Between the Foreign Earned Income Exclusion and the Foreign Tax Credit little or no US tax is usually due — but only if the return is filed and the relief claimed.

Usually not, when things are handled properly. Foreign tax credits, the treaty and timing coordination mean most income is effectively taxed once, at roughly the higher of the two countries' rates. Genuine double tax mostly comes from mismatches — penalised investment wrappers, wrong elections, missed credits.

No — this is the most common treaty myth. A 'saving clause' lets the US tax its citizens largely as if the treaty didn't exist. The treaty still genuinely helps in specific areas, notably pensions and Social Security, but it never removes the filing obligation.

The US taxes the calendar year; the UK runs 6 April to 5 April. Every UK income figure has to be re-cut for the US return, and credits must be matched across misaligned years. It's mechanical once systems are set up — and a common source of errors when two separate firms each handle one side.

A disclosure filed with a US return when you take certain treaty-based positions — for example on pension income. Not every treaty claim needs one, but where it's required, skipping it risks penalties and weakens the position.

No. The IRS doesn't recognise the wrapper: interest, dividends and gains in an ISA are taxable on a US return. Funds held inside a stocks & shares ISA are usually PFICs, taxed punitively with heavy reporting. Cash ISAs are merely taxable; fund-holding ISAs are actively dangerous for US persons.

It keeps growing tax-deferred — the treaty protects that in both directions. Tax arises when you draw on it, and how you draw matters enormously: periodic payments and lump sums are treated differently, by different countries. Decide the withdrawal shape before the first withdrawal.

In practice, no — there's no mechanism that preserves the tax protection both sides, and attempted transfers risk being taxed as full distributions. The realistic planning is about how and when to draw, not how to move the pot.

Usually a reporting exercise rather than a tax problem: the treaty generally shields the growth. But contributions, employer amounts and eventual withdrawals all need treaty analysis, and inconsistent year-to-year reporting causes real trouble. The tax-free lump sum question is genuinely contested — take advice before drawing it.

The trap is symmetrical: most UK funds are PFICs to the IRS, and many US funds lack HMRC reporting status for the UK. The workable space is narrower but real — commonly direct shares and carefully chosen funds acceptable to both systems. What fits depends on your facts; this is classic pre-investment advice territory.

Almost certainly less than you fear. If the failure was non-wilful and you live abroad, the Streamlined Foreign Offshore Procedures usually let you catch up with three years of returns and six years of FBARs, with the standard penalties waived. Thousands of people do this every year.

Risky. 'Quiet' catch-ups forfeit the protections the streamlined programme offers and can raise questions you'd rather answer on your own terms. The right route depends on your facts — get advice before filing anything.

Usually not for UK residents: the same exclusions and credits that protect current-year filers apply retrospectively. Most streamlined cases end with modest or zero US tax — the cost is mainly the preparation work itself.

If you were born in the US, you're almost certainly a US citizen with US filing obligations — the classic 'accidental American' position. There are managed routes to become compliant, and separately, some people then consider renouncing. Both start with understanding your position, not panicking.

Yes — that's the design of the practice. One firm preparing both returns is what keeps credits, elections and timing coherent, and it means you explain your situation once.

Fixed fees, agreed in writing before any work begins, based on which returns and schedules your situation needs. Scope changes are priced and approved before the work happens. See the pricing page for what drives the fee.

We are a UK-based firm serving clients worldwide — in the UK, the US and elsewhere — and we work remotely by design. Everything — consultations, documents, review, filing — runs by phone, video and a secure channel.

Just a few sentences: where you live, your citizenship, and what's on your mind. Please don't send account numbers, tax IDs or documents at the enquiry stage — a secure channel is set up if we work together.

No — it's general information, reviewed and dated, with sources shown. Advice means applying the rules to your specific facts, which is what consultations and engagements are for. The distinction protects you: general rules routinely change outcome when your details are applied.