Accountants & tax preparation for expats in the UK

Not automatically. Most employees taxed via PAYE do not need to file a return. However, if you have foreign income, self-employment income, rental income, investment gains, or income over £100,000, you must register for and file a Self Assessment return with HMRC. The deadline for online filing is 31 January following the end of the tax year. Late filing carries an immediate £100 penalty, rising significantly over time.

Yes. The US taxes on the basis of citizenship, not residence — so all US citizens and green card holders must file a US federal tax return each year regardless of where they live. Most US expats in the UK also need to file an FBAR (FinCEN 114) if their UK bank accounts exceed $10,000 at any point during the year, and may have FATCA reporting obligations. A specialist US expat tax service is strongly recommended to avoid penalties.

FBAR stands for Foreign Bank Account Report (formally FinCEN 114). It must be filed by any US person — citizen, green card holder, or resident alien — whose foreign financial accounts collectively exceeded $10,000 at any point during the calendar year. This includes UK current accounts, savings accounts, ISAs and investment accounts. FBAR is filed separately from your tax return, directly with the Financial Crimes Enforcement Network (FinCEN), and the deadline is 15 April with an automatic extension to 15 October.

Making Tax Digital is HMRC’s programme to require businesses and self-employed individuals to keep digital records and submit tax information using compatible software. MTD for VAT already applies to all VAT-registered businesses. MTD for Income Tax Self Assessment (MTD ITSA) has applied since April 2026, starting with self-employed individuals and landlords earning over £50,000. If you fall into this category, you need MTD-compatible accounting software such as Sage, QuickBooks or Xero.

If your tax position is straightforward — a single UK employer, no foreign income, no self-employment — self-filing via HMRC’s online portal is manageable. Tax software such as TurboTax is a good middle ground for US expats who want guidance without full accountant fees. If you have foreign income, overseas assets, self-employment income in multiple countries, or any cross-border complexity, a specialist expat accountant or IRS Enrolled Agent is worth the cost — errors and missed filings carry penalties that far exceed professional fees.

The Statutory Residence Test (SRT) is how HMRC decides whether you are UK tax resident in a given tax year. It works in stages: the automatic overseas tests, the automatic UK tests (for example, spending 183 days or more in the UK) and, if neither settles it, the sufficient ties test, which weighs your days in the UK against ties such as family, accommodation, work and time spent here in earlier years. Your status decides whether the UK taxes your worldwide income or only your UK income, so it is worth establishing before or soon after you move.

Normally you are either UK resident or non-resident for a whole tax year, which runs from 6 April to 5 April. Split-year treatment divides the year you arrive in or leave the UK into a non-resident part and a resident part, so that income from the part of the year you lived abroad is not taxed as if you had been UK resident all year. It only applies if you meet the conditions of one of eight specific cases, and you report it on the residence pages (SA109) of your Self Assessment return.

The FIG regime replaced the remittance basis on 6 April 2025. If you become UK tax resident after at least 10 consecutive tax years of non-UK residence, you can claim relief from UK tax on eligible foreign income and gains for up to your first 4 tax years of UK residence, whether or not you bring the money into the UK. Your nationality and domicile do not affect eligibility. Claims are made year by year on your Self Assessment return, and claiming means giving up your Personal Allowance and Capital Gains Tax annual exempt amount for that year.

UK rental profits remain taxable in the UK wherever you live. Under the Non-resident Landlord Scheme, a letting agent — or a tenant paying more than £100 a week in rent — must deduct basic-rate tax from the rent and pay it to HMRC, unless HMRC has confirmed in writing that you can receive your rent with no tax deducted. You still report the rental income on a Self Assessment return, where the tax already deducted is set against what you owe.

Yes. Non-UK residents must report every sale or disposal of UK property or land to HMRC within 60 days of completion, using the Capital Gains Tax on UK property service — even if there is no tax to pay or the sale made a loss. Any tax due must also be paid within the same 60 days, and late reporting or payment can lead to penalties and interest.