US tax returns for Americans living in the UK
US expat tax services for US citizens and green card holders in the UK. We prepare your Form 1040 and every form that goes with it — FBAR and FATCA included — using the UK tax you have already paid so the same income is not taxed twice.
Your US return, form by form
The forms Americans in the UK most often need, and what each one does.
- Form 1040Your main US tax return, every year your income is above the filing threshold.
- 1116 / 2555Uses the UK tax you've paid, or excludes UK earnings, so you're not taxed twice.
- Form 8938Reports UK accounts and investments above the FATCA threshold for people abroad.
- Form 8621Reports UK funds that count as PFICs — including funds held inside an ISA.
- FBARFinCEN 114, filed separately if your non-US accounts total over $10,000.
What clients say about their US returns
Taxule prepared my Form 1040 and used the UK tax I had already paid through PAYE to claim the Foreign Tax Credit on Form 1116. For the first time in years I owed the IRS nothing, and my FBAR and Form 8938 went in alongside the return without me having to chase anyone.
I had no idea the funds in my Stocks and Shares ISA counted as PFICs for US purposes. They spotted it on the first call, prepared the Form 8621 filings and explained in plain English what it means for how I invest from here on.
I moved to London on a green card halfway through the year. The UK split my arrival year in two, but the IRS still wanted the whole calendar year. Taxule made both returns line up so the same salary was not taxed twice, and every form was listed in writing before they started.
Who this service is for
US citizens living in the UK
Born in the US or naturalised, you file with the IRS every year your income is above the filing threshold, wherever you live.
Green card holders in the UK
A green card keeps your worldwide income inside the US tax system until you formally give it up, even living in the UK full time.
Dual US and UK citizens
A British passport doesn't change your US filing. The IRS looks only at your US citizenship.
Americans in their first UK year
The UK may split your arrival year in two. The IRS still taxes the whole calendar year, so both returns need to line up.
Behind on your US returns? The IRS Streamlined procedures are usually the better route. See Streamlined catch-up filing.
Two ways to not be taxed twice
Most Americans in the UK use one of two reliefs to wipe out US tax on income the UK already taxed. Toggle a situation to see which tends to fit — an illustration, not advice.
Foreign Tax Credit vs Foreign Earned Income Exclusion
Pick the closest situation. The bars show, roughly, how much US tax each relief tends to leave on your UK income.
Foreign Tax Credit · Form 1116
Foreign Earned Income Exclusion · Form 2555
What's included in your US tax return
You get a written scope first, listing each form we'll prepare for you.
| Form or task | What it covers | When you need it |
|---|---|---|
| Form 1040 | Your federal income tax return, including Schedule B for foreign accounts | Every year your income is above the filing threshold |
| Form 1116 or 2555 | The foreign tax credit, or the foreign earned income exclusion | Most years, to avoid double tax on UK income |
| State return | A return for any US state that still treats you as resident | If you keep ties to a state such as California or Virginia |
| Form 8938 (FATCA) | Statement of specified foreign financial assets | If your foreign assets pass the threshold for people abroad |
| Form 8621 | Annual report for each PFIC, such as a UK fund or ETF | For each UK fund you hold, including inside an ISA |
| FBAR (FinCEN 114) | Report of foreign bank and financial accounts, filed with FinCEN | If your non-US accounts total more than $10,000 |
How US tax works when you live in the UK
The rules that decide what you file, and what you pay.
Taxed as a citizen, not a resident
The US is one of very few countries that taxes its citizens wherever they live. You file if your income is above the threshold for your status — as low as $5 if married filing separately.
Using your UK tax: the credit
Form 1116 sets UK income tax against the US tax on the same income. UK tax on salary is usually higher, so many owe no US tax on UK earnings. Unused credit carries back one year or forward ten.
Or excluding your salary: the FEIE
Form 2555 excludes foreign earned income up to an annual limit set each year by the IRS. It can reduce other benefits and, once revoked, generally can't be used again for five years.
How the IRS treats an ISA
The tax shelter only works for HMRC. For the IRS, interest and dividends inside an ISA are taxable each year, gains are taxable when you sell, and the account goes on your FBAR.
Why UK funds need Form 8621
Unit trusts, OEICs and most UK ETFs are PFICs. Without a QEF or mark-to-market election, gains are spread back over the years you held the fund, taxed at the top rate, with interest added.
UK pensions and the treaty
The US–UK tax treaty can protect the growth in many UK pension schemes from US tax until you draw on it. How it applies depends on the pension, so we review each one.
Why Taxule for your US return
One team prepares your US and UK tax together, so both sides agree before anything is filed.
Your UK figures in view
Your US return is built with your PAYE and Self Assessment figures to hand, so the credits match what you actually paid HMRC.
UK accounts reported properly
ISAs, UK funds and pensions are reported the way the IRS expects — not left off or guessed.
Every form scoped clearly
Each form we'll prepare is explained clearly in your scope before we start.
How your US return works with us
- 1
Tell us about your year
Where you live, what you earn and what you own. We tell you which forms you need.
- 2
Get your form list
A written scope listing every form we'll prepare for you.
- 3
Upload your documents
Your P60, UK bank, ISA and pension statements, any 1099s, and your last US return if you have one.
- 4
Approve, and we file
We check your return against your UK position. Once you approve, we file with the IRS, and your FBAR with FinCEN.
US tax return questions from Americans in the UK
Straight answers to what Americans in the UK ask most about their US return.
Do US citizens living in the UK have to pay US tax?
You have to file if your income is above the IRS filing threshold, even though you pay UK tax. Paying at UK rates usually means little or no US tax on your salary, because the foreign tax credit uses what you've already paid. US tax is more likely on investment income — such as income inside an ISA, or gains on UK funds.
When is my US tax return due if I live in the UK?
The normal date is 15 April. Living outside the US on that date gives you an automatic extra two months, to 15 June, though tax owed still carries interest from 15 April. Filing Form 4868 moves the deadline to 15 October.
Foreign tax credit or foreign earned income exclusion?
It depends on your income, your family and your plans. For many people in the UK the foreign tax credit works out better because UK rates are higher, but we compare both before choosing.
Do I still need to file a state return?
Sometimes. States such as California and Virginia can keep treating you as resident after you move abroad if you keep strong ties, like a home or driving licence. We check your last state before filing.
What's the difference between FBAR and FATCA (Form 8938)?
The FBAR reports foreign accounts once they top $10,000 combined and is filed separately with FinCEN. FATCA's Form 8938 reports a broader set of assets above a higher threshold and is filed with your return. Many people in the UK file both — we check both for every client.
What documents will you need from me?
Typically your P60 or payslips, UK bank and investment statements, ISA and pension statements, and your last US return if you've filed before. We confirm the exact list once we know your situation.
