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Category: Tax
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Experience:  International tax
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I am on USA payroll paying taxes in USA, I moved to UK last

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I am on USA payroll paying taxes in USA, I moved to UK last year. Do I need to pay taxes in the UK too?


If you are in the UK and resident there then yes, you would need to report your income in the UK as well. The US allows an exclusion form tax on foreign earned income or a tax credit for taxes paid in the UK on the same income taxed in the US. This covers you under tax treaty arrangement form Double Taxation.

You have to pay tax on your income if you come to live in the UK. Income includes:

  • wages
  • benefits
  • your pension
  • savings interest

You’ll pay Income Tax on income above your Personal Allowance.

Please do not forget to give me a positive rating. It adds nothing to your costs but it assists me.

Customer: replied 1 year ago.
I became a UK resident in August 2015 (less that 6 months) Do i need to report taxes in UK for 2015? I payed my taxes last year to USA.For 2016, what is the tax cycle? When and how should i pay taxes in the UK? I have zero income from UK. I work online for a US company and I'm on a US payroll. I know that im in good standing in with the USA, but i would like to know if i need to pay a penalty in the UK? I don't know when is the deadline. If i moved to the UK in August 2015, should i need to report this in April 2016 (the same as the US?)

You are physically in the UK so the income you receive from your work while in the UK is taxable to the UK.

The UK tax year runs differently than the UK tax year.

The tax year is from 6 April to 5 April the following year. Residents normally pay UK tax on all their income, whether it’s from the UK or abroad.

You’re automatically resident if either:

  • you spent 183 or more days in the UK in the tax year
  • your only home was in the UK - you must have owned, rented or lived in it for at least 91 days in total - and you spent at least 30 days there in the tax year

You usually need to fill in a Self Assessment tax return if you’re a UK residentwith foreign income or capital gains.

Use the ‘foreign’ section of the tax return to record your overseas income.

Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax. You need to register if you didn’t send a tax return last year.

As this is your first year I am going to suggest that you seek a local tax professional.

Please remember that you are required to rate in a positive way (look for the STARS or SMILEY FACES) so I am credited with responding.

Do you understand now that as a resident in the UK you have a tax obligation to the UK and as a US citizen you still have a tax reporting obligation to the US?

TaxRobin and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you for your help!! :)

You are most welcome.