U.S. EXPAT TAX GUIDE – UNITED KINGDOM
File US taxes from the UK: A complete filing guide
If you are a US citizen or Green Card holder living in the UK, you will often still need to file a US tax return each year. The good news is that many Americans abroad do not end up paying tax twice
Updated on March 13, 2026
Table of Contents
This complete filing guide explains:
- Who needs to file US taxes from the UK
- The key deadlines for the 2025 tax year filed in 2026 and
- The common reporting rules US expats need to know
Do Americans in the UK have to file US taxes?
Yes. US citizens and Green Card holders living in the UK usually must file a US tax return every year if their income exceeds IRS filing thresholds. This requirement applies even if all income is earned in the UK and UK taxes are already paid.
The United States tax system is based on citizenship rather than residency, which means Americans abroad generally must report their worldwide income to the IRS.
However, filing a US tax return does not always mean paying US tax. Many Americans living in the UK eliminate or significantly reduce their US tax by using:
Because UK tax rates are often higher than US rates, many Americans in the UK ultimately owe little or no US tax after these rules are applied.
Who usually must file US taxes while living in the UK
| Person | Must file a US tax return? |
| US citizen living in the UK | Yes |
| Dual US-UK citizen | Yes |
| US Green Card holder living abroad | Yes |
| Non-US spouse of a US citizen | Usually no |
Filing does not automatically mean you will owe US tax. Many Americans abroad file every year and end up paying little or nothing once credits or exclusions are applied.
IRS income thresholds for the 2025 tax year
Whether you need to file also depends on how much income you earned during the year. If your income is above the IRS filing threshold for your status, you will generally need to submit a return.
For the 2025 tax year (filed in 2026), the standard IRS filing thresholds for many taxpayers are:
| Filing status | Income amount |
| Single | US$15,750 |
| Married filing jointly | US$31,500 |
| Head of Household | US$23,625 |
| Married filing separately (foreign spouse) | US$5 |
| Self-employed | US$400 |
Even if your income is below the normal threshold, you may still need to file in some cases. For example, this can happen if you owe special taxes, have self-employment income, or need to file to claim certain tax benefits.
For Americans abroad, many people also file voluntarily even below the threshold to:
- Claim the Foreign Earned Income Exclusion
- Claim Foreign Tax Credits
- Maintain compliance with IRS filing rules
US tax deadlines for Americans living in the UK
Americans abroad receive extra time to file their returns, but the deadlines still follow the US tax calendar.
2025 tax year US tax deadline for Americans in the UK
| Deadline | Meaning |
| April 15, 2026 | Standard filing and payment deadline |
| June 15, 2026 | Automatic filing extension for expats |
| October 15, 2026 | Final deadline if an extension is requested |
Americans abroad usually get until June 15 to file automatically. However, if you owe tax, interest usually starts running from April 15. That is why many expats estimate what they owe before filing later.
Deadlines are only one piece of the puzzle. Another major difference between the US and UK tax systems can create confusion.
US vs UK tax years
Many Americans arriving in Britain are surprised to discover that the two countries operate on different tax calendars.
US vs UK tax year comparison
| Country | Tax year |
| United States | January 1 to December 31 |
| United Kingdom | April 6 to April 5 |
Because of this mismatch, the figures on your UK tax documents may not line up neatly with your US return. For example, a P60 usually reflects the UK tax year from April 6 to April 5, while the IRS wants income reported from January 1 to December 31.
In practice, Americans in the UK usually rely on payroll records or annual income summaries to determine how much income belongs in each calendar year.
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Common tax situations for American expats in the UK
Tax situations can vary depending on how and when you moved abroad.
Moving to the UK during the year
If you relocated mid-year, part of your income may have been earned while you were still living in the US. Some expat tax benefits apply only to the period you lived abroad.
Working remotely for a US company
Income is usually treated as foreign-earned if the work is physically performed in the UK, even if your employer is based in the US.
Filing with a UK spouse
If your spouse is not a US citizen or a Green Card holder, you generally have two options:
- File jointly and include your spouse in the US tax system
- File separately and keep their income outside US reporting
Each option affects tax credits, deductions, and reporting obligations.
Types of income Americans in the UK must report
Living in the UK does not change what the IRS considers taxable income. Americans abroad may still need to report income, such as:
- Salary and wages
- Self-employment income
- Dividends and interest
- Rental income
- Capital gains
- Foreign pension payments
- Equity compensation such as stock options or RSUs
How Americans in the UK avoid double taxation
Although Americans abroad still file US returns, several provisions prevent the same income from being taxed twice.
Foreign earned income exclusion
The Foreign Earned Income Exclusion, or FEIE, lets some Americans abroad exclude part of their foreign earned income from US tax.
For the 2025 tax year, the exclusion amount is US$130,000 per person (IRS Form 2555 guidance).
To claim the exclusion, taxpayers must meet one of two residency tests:
- Physical presence test: 330 days outside the US within a 12-month period
- Bona fide residence test: genuine residence in a foreign country for an entire tax year
The exclusion applies only to earned income, such as salary or self-employment earnings.
Foreign tax credit
The Foreign Tax Credit lets you reduce your US tax bill by claiming credit for income tax you already paid to HMRC. Because UK tax rates can be higher than US rates, the credit often reduces the US tax bill to zero.
The credit is usually claimed on Form 1116. Some expats combine both strategies in the same return, depending on their income sources.
US-UK tax treaty
The US and the UK have a tax treaty that helps decide how certain income is taxed when both countries are involved. The treaty helps by:
- Clarifying which country has primary taxing rights for certain types of income
- Reducing withholding taxes in specific situations
- Supporting the use of foreign tax credits
However, the treaty does not remove the requirement for US citizens to file US tax returns.
Common US tax forms Americans in the UK may need
Filing US taxes from abroad often involves a few additional forms beyond the standard return.
| Form | Purpose |
| Form 1040 | Main US individual tax return |
| Form 2555 | Claims the Foreign Earned Income Exclusion |
| Form 1116 | Claims the Foreign Tax Credit |
| Schedule B | Reports interest, dividends, and foreign accounts |
| FinCEN Form 114 | FBAR reporting for foreign bank accounts |
| Form 8938 | FATCA reporting for foreign financial assets |
Not every expat files every form. The exact combination depends on income sources and the value of foreign assets.
Reporting foreign bank accounts and financial assets
If you have bank or investment accounts in the UK, you may need to report them separately from your US tax return.
| Requirement | Threshold |
| FBAR | US$10,000 combined foreign accounts |
| FATCA reporting | US$200,000 in foreign assets for single filers abroad |
Not every expat files every form. The exact combination depends on income sources and the value of foreign assets.
The FBAR (FinCEN Form 114) applies if your combined foreign accounts exceed US$10,000 at any point during the year.
These accounts might include:
- UK bank accounts
- Investment accounts
- Some pension accounts
FATCA reporting under Form 8938 may apply at higher asset levels.
Failing to file these reports can result in significant penalties, even if no US tax is owed.
How Americans in the UK file US taxes: Step-by-step guide
The process can be broken down into a few clear steps:
- Gather your income records: Collect documents that show your income for the year. Americans in the UK commonly rely on records such as:
- P60 forms or annual salary summaries
- payslips from UK employers
- investment or dividend statements
- records of self-employment or rental income
2. Convert income into US dollars: US tax returns must be filed in US dollars, even when income is earned in pounds. The IRS does not require a single official exchange rate. Most expats use a reliable yearly average exchange rate, applied consistently, though some income may require the rate on the date received.
3. Report worldwide income on Form 1040: Form 1040 is the main US individual tax return. Worldwide income usually includes:
- salary and wages
- self-employment income
- dividends and interest
- pension or retirement income
4. Apply tax relief for foreign income: After reporting income, many Americans abroad apply relief provisions such as the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC) to reduce or eliminate double taxation.
5. File additional reports if required: Some expats must also file extra forms, such as the FBAR (FinCEN Form 114) if foreign accounts exceed US$10,000, or Form 8938 if foreign financial assets exceed FATCA thresholds.
UK investments that create US tax issues
Certain investment products common in Britain can trigger additional US tax reporting requirements. One example involves foreign mutual funds.
Many UK investment funds fall under the IRS rules for Passive Foreign Investment Companies, or PFICs. These rules can trigger extra reporting on Form 8621 and may lead to more complicated tax treatment than standard US investments.
For this reason, many Americans abroad review the types of funds they hold to avoid unnecessary reporting complexity. Retirement accounts also raise questions, especially when expats contribute to UK pension plans.
How UK dividends are reported on a US tax return
UK investment accounts usually do not issue Form 1099-DIV. Instead, taxpayers rely on annual brokerage statements or dividend summaries and convert the income to US dollars when preparing their US tax return.
UK pensions and SIPPs for US expats
Americans working in Britain often participate in workplace pensions or hold individual retirement accounts such as Self-Invested Personal Pensions (SIPPs). These accounts receive favorable tax treatment in the UK.
Common UK pension types:
| Pension type | Description |
| Workplace pension | Individual pension with flexible investments |
| Personal pension | Individual retirement account |
| UK State Pension | Government retirement benefit |
Some UK pensions may receive favorable treatment under the US-UK tax treaty. However, the exact result depends on the type of pension and the taxpayer’s situation.
For instance:
- A UK SIPP usually triggers Forms 3520 and 3520-A reporting as a Foreign Grantor Trust.Â
- Pension accounts may also need to be included in US reporting forms such as the FBAR or Form 8938 in some cases.
The complexity often depends on the underlying investments held inside the pension.
UK tax-efficient accounts that create US tax problems
Some financial products in Britain offer tax advantages locally but do not receive the same treatment under US law.
ISAs are generally tax-free in the UK for dividends and capital gains. However, the US usually does not recognize that tax-free treatment, so the income may still need to be reported on a US return.
ISA treatment: UK vs US
| Feature | UK treatment | |
| Investment income | Tax-free | Usually taxable |
| Capital gains | Tax-free | Usually taxable |
| Reporting | None required | May require FBAR or FATCA |
UK funds and PFIC classification
Many investment funds held in ISAs or brokerage accounts are considered PFICs under US tax law. PFIC investments often require additional reporting and complex tax calculations.
This is one reason some expats prefer US-based investment structures instead of foreign mutual funds. The rules can be technical, so the best approach depends on your specific situation.
Catch-up options if you fall behind on US tax filings
Some Americans living in the UK only discover their US filing obligations after several years abroad. This is a very common situation for expats.
Fortunately, the IRS offers programs that allow taxpayers to catch up on missing returns without facing the full range of penalties. Two common options include:
- Streamlined Filing Compliance Procedures
- Delinquent FBAR submission procedures
These programs are designed for taxpayers whose failure to file was non-willful. When used correctly, they often allow Americans abroad to become fully compliant while avoiding significant penalties.
Many expats in the UK use these programs to catch up on several years of missed tax returns and reporting forms.
When should you consider professional help?
Catching up on US tax filings can involve multiple forms, including:
- Form 1040
- FBAR (FinCEN Form 114)
- Form 8938
- Form 2555 or Form 1116
Because the rules can be complex, many Americans abroad choose to work with a specialist expat tax firm to ensure everything is filed correctly. If you are unsure about your situation, the first step is usually to get a quote or review of your filing requirements.
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US Taxes in the UK FAQs
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Do I have to report my UK salary to the IRS if it is already taxed in the UK?
Yes. The IRS still requires US citizens and Green Card holders to report their worldwide income, including salary earned in the UK.
However, reporting the income does not automatically mean paying US tax. Many Americans in the UK reduce or eliminate their US tax liability by using the Foreign Earned Income Exclusion or the Foreign Tax Credit.
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What happens if my employer does not provide US tax forms like a W-2?led US taxes while living in Australia?
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Do I need to convert my UK income into US dollars when filing?
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Are UK social security contributions deductible on a US tax return?
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Do I still need to file if I already pay taxes through the UK PAYE system?
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Can I contribute to US retirement accounts while living in the UK?
