US Tax Returns
We have many clients who live in the UK but require a US tax return - this could be as a requirement of citizenship or to maintain a Green Card. We manage the worldwide tax position and then brief a US filing agent to prepare the return. This ensures that the US return is in accordance with any UK returns.
In conjunction with our UK compliance service, at Andrew Webster we can offer an integrated and tailored tax service to overseas filers of US returns at a very attractive fee rate compared to the larger firms of accountants usually providing a dual compliance service.
An individual’s US return becomes much more complex when overseas as there is the requirement to complete additional forms to claim, for example, the Foreign Earned Income Exclusion (“Form 2555 Foreign Earned Income”) and, in some instances it can be critical to the eventual tax payable, whether the exclusion is claimed under the Bona Fide Residence test or the Physical Presence test. Similarly, the claim for a credit for any tax paid to a foreign jurisdiction can be complex as it is necessary to complete a separate “Form 1116 Foreign Tax Credit” for each category of income. We have both locally-based US expertise and an affiliate operation, headed by a CPA, located in the US so we are confident that we can meet all our clients’ requirements for the coming 2009 tax season.
We do have some clients who no longer receive a UK return - but none-the-less must file in the US. In our view it is still best practice to review your UK liability each year - to ensure that there is no UK tax liability or worse still that there are reliefs that you are not claiming. Again we liaise with the US tax advisors to ensure that they file a correct return. Our expat team is led by Paulette Peterson. She has many years of experience with expatriate tax issues including the USA but also many other jurisdictions. |
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High Earners - how to minimise the impact of new 50% tax rate.
Pensions - how to maximise pensions following the restrictions on higher rate relief.
Residence HMRC challenge frequent visitors.
US tax filers should pay any foreign income tax liabilities before January 1, 2010 in order to trigger a foreign tax credit within their 2009 US tax return. If payment of foreign taxes is delayed, for example until January 31 2010, which is the UK normal due date, then the foreign tax credit, in most cases, will not be available to take against a US tax liability until the filing of the US return for 2010
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If you have a business then you may have complex issues to resolve where the business is resident. It could be resident in the UK - or its presence in the US may be sufficient to establish that it is resident in the US. We can advise on the best approach.
If you have a personal company then this can give rise to tax issues in USA - so great care is needed before setting up this kind of arrangement for a US citizen resident in the UK.
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| International |
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If you have significant involvement with another country then the tax problems can multiply e.g. a French citizen, living in UK with a US Green card. We can help you deal with the complexity.
Our Australian office opened in 2009. We can therefore also help people resident in Australia who have a requirement to file in the USA.
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| Individuals |
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As well as preparing the tax returns we can also help with planning your income tax liability and minimising your worldwide tax position.
Plan to reduce tax by linking your investment planning with an understanding of the problems of expats.
Inheritance tax planning is more difficult when you are a US citizen living in the UK
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