Just like the US, the UK is also a tax-intensive country. However, corporate taxation and capital gains are less taxed compared to the US. It is important for US citizens living and working in the UK to be fully informed about and compliant with the UK taxation system. An experienced UK tax specialist can help them avoid problems and make the most out of the tax-related opportunities. Although UK tax forms are easier to manage compared to US 1040s forms, US citizens should still obtain proper assistance.
With that being said, here are some of the benefits that US citizens living and working in the UK can get by hiring a UK tax specialist:
Proper Contribution To UK Pension Scheme- rates of income tax are higher in the UK compared to the US. However, this means that tax-deductible items are much more valuable. UK employers must offer both UK employees and expats a pension scheme. UK tax specialists provide advice on how to contribute fully to the UK pension scheme, especially if the annual salary is more than £100,000.
Relevant Knowledge- the UK tax code is the most complicated and largest in the world. Although UK tax return forms are much easier to understand, the back end can be extraordinarily complex. As comparison, US tax code is the third largest after India. It’s a big system and US citizens shouldn’t approach it without proper guidance. US citizens are not brought up in the local UK tax code and they don’t have any embedded knowledge.
Get Tax Reliefs- there are hidden reliefs in the UK tax system that US citizens can take advantage of. It is easy to miss them without proper knowledge and guidance. It is possible for US citizens to under-claim or over-claim on their tax returns. If they over claim, HMRC will notify them and they could be charged a penalty. If US citizens under claim, HMRC may not get in touch and they may overpay taxes.
Contact British American Tax
To learn more about the benefits of a UK tax specialist for US citizens living and working in the UK, contact British American Tax today and consult with an expert tax advisor who can answer any questions you might have about taking a pro-active approach to your tax planning.
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