Optimise Accountants Limited
US & UK Tax
International Tax Advisory Services for American and British Expats
Expert Guidance for Expats by Simon Misiewicz
Moving abroad is an exciting adventure but comes with complex tax implications. Whether you are relocating to the Australia, Canada, Spain, UK or US our tax planning consultant services are designed to help American and British expats navigate the intricacies of international taxation.
An “expat” (short for expatriate) is someone who lives outside their native country, typically for work, lifestyle, or personal reasons. Unlike immigrants, expats often retain their citizenship in their home country while residing abroad temporarily or semi-permanently.
Understanding the tax systems of both your home country and your new destination is crucial. Simon Misiewicz is an international tax planning consultant. He is a dual US (Enrolled Agent, EA) and UK (Association of Chartered Certified Accountants ACCA) and provides international expat tax advice to Americans and Brits moving abroad. We ensure you remain compliant with local tax laws while optimising your financial situation.
Expert Guidance for Expats by Simon Misiewicz
Moving abroad is an exciting adventure but comes with complex tax implications. Whether you are relocating to the Australia, Canada, Spain, UK or US our tax planning consultant services are designed to help American and British expats navigate the intricacies of international taxation.
An “expat” (short for expatriate) is someone who lives outside their native country, typically for work, lifestyle, or personal reasons. Unlike immigrants, expats often retain their citizenship in their home country while residing abroad temporarily or semi-permanently.
Understanding the tax systems of both your home country and your new destination is crucial. Simon Misiewicz is an international tax planning consultant. He is a dual US (Enrolled Agent, EA) and UK (Association of Chartered Certified Accountants ACCA) and provides international expat tax advice to Americans and Brits moving abroad. We ensure you remain compliant with local tax laws while optimising your financial situation.
US & UK Tax Specialists
Understanding the income tax rates in the US and the UK is crucial for anyone living or working in these countries. This comparison simplifies the complexities and highlights the key differences that can affect your finances. This is particular useful for Brits moving to the US, and for Americans moving to the UK.
United States (US)
The United States employs a progressive system, where rates increase as income rises. As of 2024, the federal ranges from 10% to 37%. There are seven brackets; your pay rate depends on your earnings level. For example, single filers with an income of up to $11,000 are taxed at 10%, while those earning over $518,401 face a 37% rate.
In addition to federal taxes, most states impose their own rate. These vary significantly, with some states, like California, having a top rate of 13.3%, while others, such as Florida and Texas, have no state income tax.
It is worth booking a call with our US & UK dual qualified specialist, Simon Misiewicz, who can give you comfort and confidence.
You will also need to know about the US & UK tax treaty to ensure you do not overpay taxes on your earnings. Be sure to know where you pay the least amount: US vs UK Income Tax Rates.
The Internal Revenue Service (IRS) may withhold up to 30% tax on your US income. This 30% rate may be reduced with the aid of Form W8-BEN, designed to reduce the amount you pay because of the US & UK tax treaty. Ensure you obtain your US tax ID (ITIN) when you need to submit a US tax return.
United States (US)
The United States employs a progressive system, where rates increase as income rises. As of 2024, the federal ranges from 10% to 37%. There are seven brackets; your pay rate depends on your earnings level. For example, single filers with an income of up to $11,000 are taxed at 10%, while those earning over $518,401 face a 37% rate.
In addition to federal taxes, most states impose their own rate. These vary significantly, with some states, like California, having a top rate of 13.3%, while others, such as Florida and Texas, have no state income tax.
It is worth booking a call with our US & UK dual qualified specialist, Simon Misiewicz, who can give you comfort and confidence.
You will also need to know about the US & UK tax treaty to ensure you do not overpay taxes on your earnings. Be sure to know where you pay the least amount: US vs UK Income Tax Rates.
The Internal Revenue Service (IRS) may withhold up to 30% tax on your US income. This 30% rate may be reduced with the aid of Form W8-BEN, designed to reduce the amount you pay because of the US & UK tax treaty. Ensure you obtain your US tax ID (ITIN) when you need to submit a US tax return.
US UK Income Tax Treaty
Why You Might Be Losing Thousands
You’re moving abroad and excited about your new life in a new country.
Moving between the United Kingdom and the United States brings different income tax rates and procedures for filing US & UK tax returns.
But what if I told you that you might pay double taxes? Yes, the US UK Income Tax Treaty is supposed to protect you. But if you don’t understand it correctly, it could cost you thousands. Americans living in the UK will pay both US income tax and UK income tax.
Imagine this. You’ve moved from London to New York for a job. You’re earning good money, but when tax season comes around, you’re hit with taxes in both countries. Not knowing how to apply the treaty means you’ve lost out. You’ve paid more than you should. And it could have been avoided.
What Is the US UK Income Double Taxation Agreement (DTA)?
The US UK Double Taxation Agreement (DTA) is an agreement between the United States and the United Kingdom. It’s designed to prevent you from paying tax on the same income in both countries. But it’s not automatic. You need to know how it works. Many expats think they are safe from double taxation but miss key details.
How does it work if you live in the US but work remotely for a UK company? What if you have assets in both countries? These questions can make your head spin. But don’t worry, we’re going to break it down.
What Could Go Wrong?
Many people don’t take the time to understand the US UK Income Tax Treaty.
You’re moving abroad and excited about your new life in a new country.
Moving between the United Kingdom and the United States brings different income tax rates and procedures for filing US & UK tax returns.
But what if I told you that you might pay double taxes? Yes, the US UK Income Tax Treaty is supposed to protect you. But if you don’t understand it correctly, it could cost you thousands. Americans living in the UK will pay both US income tax and UK income tax.
Imagine this. You’ve moved from London to New York for a job. You’re earning good money, but when tax season comes around, you’re hit with taxes in both countries. Not knowing how to apply the treaty means you’ve lost out. You’ve paid more than you should. And it could have been avoided.
What Is the US UK Income Double Taxation Agreement (DTA)?
The US UK Double Taxation Agreement (DTA) is an agreement between the United States and the United Kingdom. It’s designed to prevent you from paying tax on the same income in both countries. But it’s not automatic. You need to know how it works. Many expats think they are safe from double taxation but miss key details.
How does it work if you live in the US but work remotely for a UK company? What if you have assets in both countries? These questions can make your head spin. But don’t worry, we’re going to break it down.
What Could Go Wrong?
Many people don’t take the time to understand the US UK Income Tax Treaty.
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