File US taxes from the UK
US citizens and Green Card holders living in the UK are generally required to file an annual US tax return with the IRS if they meet the applicable filing thresholds. The US taxes its citizens and resident aliens on worldwide income, so your UK salary, self-employment income, pension income, investments, and other earnings may still need to be reported on Form 1040 even if you already pay tax to HMRC.
Filing a US tax return does not automatically mean you will pay tax twice. Many Americans in the UK can reduce or eliminate double taxation by using the Foreign Tax Credit, the Foreign Earned Income Exclusion, or treaty-based positions where applicable. However, the obligation to file may remain even when no US tax is ultimately due.
You may also have additional US reporting requirements depending on your financial situation. Common examples include the FBAR for foreign bank accounts, Form 8938 for specified foreign financial assets, and specialist reporting for UK pensions, ISAs, foreign companies, trusts, or large gifts. These forms are often informational, but missing them can lead to penalties, so it’s important to check which rules apply before filing.
Last updated May 12, 2026
Written By: Rose-Ann De Villa, EA, CPA
In this article
|
Topic |
Key facts for tax year 2025 (filed in 2026) |
|
Who must file |
US citizens, including dual nationals and Green Card holders, with worldwide income over the filing threshold. |
|
Filing thresholds for Tax Year 2025 |
Single (under 65): US$15,750 Head of Household: US$23,625 Married Filing Jointly: US$31,500 Married Filing Separately: US$5 |
|
Self-employment rule |
File if net earnings exceed US$400 |
|
Expats’ filing deadline |
June 15, 2026 (with auto 2-month extension) Tax due is April 15, 2026. |
|
Main tax benefits |
• FEIE: Exclude up to US$130,000 of earned income • Foreign Tax Credit (FTC): Credit for income tax paid in the UK • Child Tax Credit: Up to US$2,200 per child (refundable up to US$1,700) |
|
Treaty & totalization |
The UK-US tax treaty prevents double taxation, and the Totalization agreement prevents duplication of Social Security payments |
|
Key reporting |
FBAR (>US$10,000 in foreign accounts) FATCA (Form 8938) Form 5471 (UK company) Form 3520/3520-A (foreign trust or receiving large foreign gifts) Form 8858 (Self-employed in the UK) |
US tax filing obligations for US expats living in the UK
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.
What’s new for Americans in the UK in 2026?
- The 2025 Foreign Earned Income Exclusion amount of $130,000.
- The April 15, 2026, U.S. payment deadline.
- The June 15, 2026, automatic filing extension for taxpayers abroad.
- The October 15, 2026, extended filing deadline applies if Form 4868 is filed.
- UK Making Tax Digital changes for some self-employed and landlord taxpayers.
- The end of the UK remittance basis from April 2025 and the introduction of the new FIG regime for some new UK arrivals.
Need help filing US taxes from the UK?
How much do I need to earn to file US taxes in 2025?
It depends on your filing status and how much income you earned during the year. If your income is above the IRS filing threshold, you usually need to file a US tax return.
For the 2025 tax year (filed in 2026), here are the standard IRS filing thresholds for most taxpayers:
|
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
When Is the U.S. Tax Filing Deadline for Expats?
If you live in the UK, you still follow the US tax calendar, but you get extra time to file. Most Americans abroad automatically receive a 2-month extension.
For the 2025 tax year, here are the key deadlines you need to know:
| 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.
Also read: US tax deadline 2025 for 2026
US vs UK tax year
The US and UK use different tax calendars, which often surprises Americans moving to the UK. The US tax year runs from January to December, while the UK tax year runs from April to April.
This difference can affect how and when your income is reported in each country.
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.
Also read: What is the UK tax year?
What are the most common tax situations for US expats in the UK?
The most common tax situations depend on how and when you moved to the UK, as well as how you earn your income. Your filing requirements can change based on your job, residency status, and financial setup.
Most Americans in the UK fall into a few typical scenarios, such as:
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.
What income must US expats in the UK report to the IRS?
If you live in the UK, you still need to report your worldwide income to the US. The IRS does not only look at UK income. It looks at everything you earn, no matter where it comes from.
This can include 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 to avoid double taxation between the US and the UK
In most cases, you can avoid being taxed twice on the same income. Although US citizens living in the UK must still file a US tax return, there are key provisions such as the Foreign Tax Credit and the US–UK tax treaty that help prevent double taxation.
- 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.
How does the US-UK tax treaty help me?
The US and the UK have a tax treaty that helps decide which country can tax certain types of income. This helps reduce the chance of being taxed twice on the same money.
The treaty can help 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.
US tax forms for Americans living in the UK
If you live in the UK, filing US taxes may require a few extra forms beyond your standard tax return. The exact forms depend on your income, assets, and financial situation.
Common US tax forms
| 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 UK bank accounts: Do you need to file an FBAR?
If you have bank or investment accounts in the UK, you may need to report them to the US separately from your tax return. This depends on the total value of your accounts and other reporting thresholds.
The US requires Americans abroad to report certain foreign accounts, even if no tax is owed. This is done through two main reporting rules: FBAR and FATCA.
FBAR vs FATCA: What you need to report and when
| Requirement | Threshold |
| FBAR | US$10,000 combined foreign accounts |
| FATCA reporting | US$200,000 in foreign assets for single filers abroad |
The FBAR (FinCEN Form 114) applies if your combined foreign account balances exceed US$10,000 at any point during the year.
These accounts can include UK bank accounts, investment accounts, and, in some cases, pension accounts.
FATCA reporting (Form 8938) may also apply, but only at higher asset thresholds and as part of your US tax return.
Note: Failing to file these reports can result in significant penalties, even if you do not owe any US tax.
How to file US taxes from the UK (step-by-step guide)
Filing US taxes from the UK can feel complicated at first, but the process is easier to manage when you break it into clear steps.
Step-by-step guide to filing US taxes from the UK
- 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
- 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.
- 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
- 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.
- 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.
Once you know what income to report, which forms apply, and what deadlines to follow, the filing process becomes much more straightforward.
How the US taxes UK investments
If you live in the UK, some local investments can create extra US tax reporting requirements. This is especially true for certain UK-based funds.
Many UK investment funds are treated as Passive Foreign Investment Companies (PFICs) under US tax rules. These investments can trigger additional reporting on Form 8621 and often come with more complex tax treatment than standard US investments.
Because of this, many Americans in the UK review the types of funds they hold to avoid unnecessary reporting issues. UK pension-related investments can also raise similar questions.
Also read: Passive Foreign Investment Company rules
Report UK dividends on a US tax return
UK investment accounts usually do not issue Form 1099-DIV. Instead, you report dividends using your brokerage statements or annual summaries.
You also need to convert the income into US dollars when preparing your US tax return.
How are UK pensions taxed in the US?
If you live in the UK, your pension may still be subject to US tax rules. Even though UK pensions receive favorable tax treatment locally, the US may treat contributions, growth, and withdrawals differently.
Americans working in the UK often have workplace pensions or Self-Invested Personal Pensions (SIPPs), both of which can come with specific US reporting considerations.
Common UK pension types:
|
Pension type |
Description |
|
Employer-sponsored retirement plan |
|
|
SIPP |
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.
- 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.
Are UK ISAs and Tax-Free Accounts Taxed in the US?
Yes, in many cases. Some UK accounts that are tax-free locally do not receive the same treatment under US tax rules. This means income from these accounts may still need to be reported and taxed in the US.
ISAs (Individual Savings Accounts)
ISAs are tax-free in the UK for dividends and capital gains. However, the US does not usually recognize this tax-free treatment, so the income is often still taxable on a US return.
ISA treatment: UK vs US
| Feature | UK treatment | US 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 rules
Many funds held inside ISAs or UK brokerage accounts are treated as Passive Foreign Investment Companies (PFICs) under US tax law. These investments can trigger extra reporting and more complex tax calculations.
Because of this, some Americans in the UK choose US-based investments instead of foreign funds. The right approach depends on your situation.
Common mistakes Americans in the UK make when filing US taxes
- Assuming PAYE means no U.S. return is needed.
- Reporting UK P60 income without adjusting for the U.S. calendar year.
- Choosing FEIE automatically instead of comparing it with the Foreign Tax Credit.
- Forgetting to report UK ISAs, even though they are tax-free in the UK.
- Holding UK funds that may be treated as PFICs by the IRS.
- Missing FBAR or FATCA reporting for UK bank, pension, ISA, or investment accounts.
- Treating the UK 25% pension lump sum as tax-free in the U.S.
- Forgetting that UK National Insurance is not the same as U.S. income tax.
- Not checking whether state tax filing still applies.
- Waiting too long to catch up on missed U.S. returns.
What if you’re behind on your US tax filings?
If you haven’t been filing US taxes while living in the UK, you’re not alone. Many Americans only discover their US filing obligations after spending years abroad.
The good news is that the IRS offers ways to catch up without facing the full range of penalties, especially if your situation was non-willful.
Two common options include:
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.
Frequently Asked Questions
Do You Have to Report UK Salary to the IRS If It’s Already Taxed?
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.
What If My Employer Doesn’t Provide a W-2?
Do You Need to Convert UK Income Into US Dollars for Tax Filing?
Can You Deduct UK National Insurance on a US Tax Return?
Do I Still Need to File US Taxes If I Pay UK PAYE?
Can US Expats in the UK Contribute to Retirement Accounts?
Further reading
File US Taxes from the UK Guide for American Expats
Download your free copy of the 52-page guide that covers everything Americans in the United Kingdom need to know about US tax filing.
Rose-ann De Villa, IRS Enrolled Agent and CPA, brings 15 years of expat tax expertise in US tax preparation, planning, and advisory for Americans and Green Card holders in the UK.
Rose-ann has been mentioned in the Daily Express UK news wherein she talked about Stimulus payments and Child Tax Credit refunds for US expats in the UK.