US Citizens Working in United Kingdom
See what you actually take home after US and United Kingdom taxes — whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in United Kingdom:
- •US citizens are taxed on worldwide income, but FEIE can exclude up to ~$126,500
- •UK taxes residents on UK-sourced income with progressive rates
- •You may owe taxes to both countries, but tax treaties help prevent double taxation
- •UK National Insurance contributions apply in addition to income tax
Who taxes you?
As a US citizen working in the UK, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to approximately $126,500 of foreign earned income. The UK taxes residents on UK-sourced income with progressive rates. Tax treaties between the US and UK help prevent double taxation through foreign tax credits.
Common pitfalls
- Not meeting the 330-day physical presence test can disqualify you from FEIE
- UK National Insurance contributions are separate from income tax and can add significant costs
- State tax obligations may persist if you maintain state residency
- Self-employment tax (FICA) may still apply depending on your employment structure
- Currency fluctuations can significantly impact your effective take-home pay
Frequently asked questions
Yes. US citizens must file US tax returns regardless of where they live. However, you may not owe US taxes if your income is below the FEIE threshold and you meet the physical presence test.
The FEIE allows you to exclude up to approximately $126,500 (indexed annually) of foreign earned income from US taxation if you meet either the bona fide residence test or the 330-day physical presence test.
The UK taxes residents on UK-sourced income with progressive rates. You'll pay UK income tax and National Insurance contributions. You can claim foreign tax credits on your US return to offset taxes paid to the UK.
Generally no. The US-UK tax treaty and foreign tax credits help prevent double taxation. You'll typically pay the higher of the two tax rates, not both.
Self-employed US expats may still owe self-employment tax (FICA) to the US, in addition to UK taxes. The rules are complex and vary based on your specific situation.
Official resources
Primary sources:
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