Americans abroad are taxed on worldwide income and thus must file annual tax returns. If you are being taxed by a foreign country, you can claim a wide number of tax exemptions, deductions, and credits that will often reduce US taxes to a very small figure. As you are domiciled outside of Britain can mean that large amounts of your income are shielded from UK tax, but thus unshielded from US tax. This can result in a significant annual US tax burden. With careful advance planning of your major economic decisions, this burden can be reduced.
We do this in part by helping you to understand your tax position. An hour’s worth of personal consultation is included in your annual fee. This can be taken through short emails and calls throughout the year, or all at once in an annual meeting. Advice beyond the annual hour will be charged out at our hourly rates.
Some areas you may wish to discuss include estate and inheritance tax issues and other long-range tax planning opportunities, especially if your spouse is not American or if your children are dual citizens. You may wish to review your pension planning options to take advantage of the US/UK tax treaty. If your employment includes a significant stakehold in a company, we can provide advice to help you choose the most tax-efficient remuneration scheme, along with any additional compliance needs that may be generated by your decision.
You should be aware of changes to compliance laws in the US. There are now steep penalties for late filing, errors, and omissions in reporting a full list of all your foreign bank and securities accounts to the US, including ones you have signature authority over but do not own the underlying assets – such as accounts for your business or your minor children. Penalties are $10,000 per bank account, unless the omission is deemed wilful, where the penalty is a percentage of the assets in the account. If you have been delinquent in reporting this information in the past, we urge you to rectify the problem soon.
Why Choose British American Tax?
- Prearranged calls to tax specialists accepted as late as 11 p.m. GMT.
- Our clients include famous people, economics professors, hedge fund managers, and a rocket scientist or two.
- Managing Director Liz Zitzow, E.A. has more than fifteen years of experience waiving penalties for late filers.
- Managing Director Liz Zitzow, E.A. has been resolving IRS audits in favour of clients for more than twenty years.
- One hour of free tax planning per year for all clients.
- Income tax planning inclusive of capital gains, primary residences, secondary homes, businesses, inheritance, gift, and trust tax planning.
- Tax planning before the tax year end.
- Tax planning before your move to another country.
- Tax planning to reduce US tax on the sale of your primary residence.
- Tax planning for LGBT and other alternative lifestyles.
- Bespoke tax planning for inherited trusts.
- Fixed fee or ceiling fee for individual and corporate taxation.
- Accept payment in pounds, euros, or US dollars.
- Accept Paypal, credit card, cash, cheque, wire, and BACS.
- We work alongside your UK accountant to make the total tax between both countries as small as possible.
- We provide legal referrals for all the legal work you need.
- US Enrolled Agents and CPAs.
If your current US tax accountant does at least seven of these, you’re doing well. If they are handling less than seven, we do all of them. Call us.