U.S. Expat Taxes in the UK: How Americans File and Avoid Double Tax
- U.S. Filing at a Glance for Americans in the UK
- Do Americans in the UK Have to File U.S. Taxes?
- The Two Ways to Avoid Double Tax: FTC and FEIE
- Reporting Your UK Bank Accounts: FBAR and Form 8938
- The U.S.-UK Tax Treaty and Totalization Agreement
- Key U.S. Tax Deadlines for Americans in the UK
- What Order to File In
- Common UK-Specific U.S. Tax Traps
- Behind on Filing? The Streamlined Procedure Can Help
- A Real-World Example: Priya's U.S. Return From London
- How Greenback Can Help
- Frequently Asked Questions
Americans living in the UK must file a U.S. federal tax return every year on their worldwide income, but most owe the IRS nothing. The Foreign Tax Credit and the Foreign Earned Income Exclusion offset your U.S. tax with the higher UK tax you already paid, and alongside the return, you report qualifying UK bank accounts on the FBAR and Form 8938. Your UK taxes are filed separately, usually through PAYE or a Self Assessment return. As a U.S. citizen or green card holder, you follow these rules even though you already live and pay tax in the UK.
What filing in the UK involves as an American:
- A U.S. return every year on worldwide income, even if you owe nothing.
- The Foreign Tax Credit, or FEIE, is used to cancel out double taxation.
- The FBAR and Form 8938 to report UK accounts above the thresholds.
- A June 15 deadline for expats, extendable to October 15.
For how the UK side works, see our guide to the UK tax system; for a side-by-side of the two systems, see UK vs. U.S. taxes. Filing is one piece of the bigger picture in our guide to living in the UK as an American. This guide covers the U.S. filing side.
U.S. Filing at a Glance for Americans in the UK
| Form | Purpose | When you file it |
|---|---|---|
| Form 1040 | Your annual U.S. return on worldwide income | Every year |
| Form 1116 or Form 2555 | Claim the Foreign Tax Credit or FEIE to cancel double tax | Most years |
| FBAR (FinCEN 114) | Report foreign accounts over $10,000 combined | If you cross the threshold |
| Form 8938 | Report foreign assets over $200,000 (single, abroad) | If you cross the threshold |
Do Americans in the UK Have to File U.S. Taxes?
Yes. The U.S. taxes based on citizenship, not residence, so every U.S. citizen and green card holder files a federal return on their worldwide income, no matter where they live. Living in the UK and paying UK tax does not remove that obligation.
You generally must file if your income is above the standard deduction, which for 2025 is $15,750 for single filers and $31,500 for married filing jointly. Self-employment income has a much lower threshold of $400. Filing does not mean owing; it means reporting your income and then applying the reliefs below, which, for most people, bring the U.S. bill to zero.
Filing U.S. taxes from the UK?
The Two Ways to Avoid Double Tax: FTC and FEIE
Two tools stop the same income from being taxed by both countries, and for the UK, the choice usually favors the Foreign Tax Credit.
- The Foreign Tax Credit gives you a dollar-for-dollar credit against your U.S. tax for the income tax you paid to the UK. Because UK rates are generally higher than U.S. rates, the credit usually erases your entire U.S. bill and leaves excess credits to carry forward.
- The Foreign Earned Income Exclusion instead lets you exclude up to $130,000 (2025) or $132,900 (2026) of earned income from U.S. tax, but in a high-tax country, it often wastes credits you could have used, and it can reduce family credits like the refundable Child Tax Credit.
Which one is right depends on your income, your family, and your plans, and the two can be combined. Our guide to choosing between the FEIE and the Foreign Tax Credit walks through the decision.
Reporting Your UK Bank Accounts: FBAR and Form 8938
Filing your return is only part of the job. The U.S. also requires you to report foreign accounts and assets once they cross certain thresholds.
| Report | What it covers | Threshold (single, abroad) |
|---|---|---|
| FBAR (FinCEN 114) | Foreign bank and financial accounts | $10,000 across all accounts at any point |
| Form 8938 (FATCA) | Foreign financial assets | $200,000 on the last day, or $300,000 at any point |
The FBAR is filed electronically with FinCEN, not attached to your tax return, while Form 8938 is filed with your Form 1040. Many Americans in the UK need both, and the two overlap but are not identical, as our guide to FBAR vs. Form 8938 explains. UK pensions and investment accounts often count toward these thresholds, making them easy to underestimate.
The U.S.-UK Tax Treaty and Totalization Agreement
Two agreements sit behind the reliefs above. The U.S.-UK tax treaty decides which country taxes specific income, such as pensions, dividends, and interest, and can protect certain UK pensions from immediate U.S. tax. The U.S.-UK Totalization Agreement stops you from paying social taxes to both countries, so an American working in the UK pays National Insurance rather than U.S. Social Security. You do not need to master either one to file, but they are the reasons the system works in your favor.
Key U.S. Tax Deadlines for Americans in the UK
Living abroad changes your U.S. deadlines, and your UK deadlines run on a separate calendar.
| Deadline | Date |
|---|---|
| U.S. tax payment due | April 15 |
| U.S. filing deadline (automatic for expats) | June 15 |
| U.S. filing with extension | October 15 (via Form 4868) |
| FBAR | April 15, automatically extended to October 15 |
| UK Self Assessment (if required) | January 31 |
Americans abroad get an automatic two-month extension to June 15, and you can request a further extension to October 15. Any U.S. tax owed is still due by April 15, though most Americans in the UK owe nothing after the Foreign Tax Credit.
What Order to File In
File your UK return first, then your U.S. return. Your UK income tax is the figure you need for the Foreign Tax Credit, so settling the UK side first lets you claim the right credit and usually brings your U.S. bill to zero.
- Settle your UK tax. Most employees have this handled automatically through PAYE. If you file a UK return, our guide to UK Self Assessment covers who needs to and how.
- File your U.S. return. Use the UK tax you paid to claim the Foreign Tax Credit on your Form 1040, then add any account reporting you need.
If you also hold UK citizenship, our guide to U.S.-UK dual citizen taxes covers the wrinkles specific to dual nationals.
Common UK-Specific U.S. Tax Traps
A few UK products that the IRS treats very differently from HMRC catch Americans out:
- ISAs are not tax-free to the IRS. A UK ISA is tax-sheltered in the UK, but the IRS taxes the income inside it and may treat the funds as PFICs with extra reporting.
- UK pensions need U.S. handling. Workplace and personal UK pensions must be reported, and while the treaty defers U.S. tax on growth, some schemes raise foreign-trust questions.
- Premium Bonds and similar are taxable. Prizes that are tax-free in the UK are ordinary income to the IRS.
Behind on Filing? The Streamlined Procedure Can Help
Many Americans do not learn they must file until they have already missed years, and the IRS has a path back. The Streamlined Filing Procedures allow non-willful taxpayers to become compliant by filing the last 3 years of returns and the last 6 years of FBARs, usually without penalties. Because most Americans in the UK owe no U.S. tax once the Foreign Tax Credit is applied, catching up often costs far less than people fear.
A Real-World Example: Priya’s U.S. Return From London
Priya is an American living in London on a £70,000 salary, with a UK workplace pension and about £15,000 in UK savings.
- Her U.S. return: she files Form 1040 reporting her worldwide income.
- Avoiding double tax: she claims the Foreign Tax Credit for the UK income tax she already paid, which is higher than her U.S. tax, so her IRS bill is $0.
- Account reporting: because her UK accounts top $10,000 combined, she files an FBAR; her assets are under the Form 8938 threshold, so she does not need to file this year.
- Her UK side: her UK tax is handled through PAYE, so she files no UK return.
Priya owes the IRS nothing, but she still files a full U.S. return and an FBAR every year. The value is in doing it correctly, claiming the credit, and reporting the accounts, not in a surprise tax bill.
How Greenback Can Help
U.S. taxes from the UK are less about how much you owe, which is usually little or nothing, and more about filing two systems correctly so nothing is missed. The reliefs only work when the returns are prepared together and in the right order, and the account-reporting rules carry real penalties when overlooked.
We pair a U.S. accountant with a UK Chartered Accountant on a single account, so your UK and U.S. returns line up, and you claim every credit you are owed. Whether you are filing your first year in the UK or catching up on several, learn more about how we help Americans living in the UK and our UK tax services.
Get your UK and U.S. taxes filed together and correctly.
Frequently Asked Questions
Yes. U.S. citizens and green card holders file a U.S. return for worldwide income, regardless of where they live. Living in the UK and paying UK tax does not end that obligation, but the Foreign Tax Credit and the tax treaty usually mean you owe the IRS nothing.
Usually not. Because UK tax rates are generally higher than U.S. rates, the Foreign Tax Credit typically cancels out your entire U.S. bill. You still have to file a return and report the income every year, even when no tax is due.
For most Americans in the UK, the Foreign Tax Credit is better, because UK tax is high enough to offset the U.S. bill, and it preserves credits and family benefits that the FEIE can waste. The right choice depends on your situation, and the two can be combined.
If your foreign accounts total more than $10,000 at any point in the year, you must file an FBAR. If your foreign assets exceed $200,000 on the last day of the year (or $300,000 at any point) as a single filer abroad, you also file Form 8938. UK pensions and investments often count.
Americans abroad get an automatic extension to June 15, and can extend further to October 15 with Form 4868. Any tax owed is still due April 15. The UK Self Assessment deadline, if you need to file one, is separate, on January 31.
Often yes. Under FATCA, UK banks report accounts held by U.S. persons to the IRS, so it can match what you disclose on your FBAR and Form 8938 against what your bank reports. That is why keeping up with foreign-account reporting matters, even in years when you owe no tax.
This article is for general informational purposes only and does not constitute tax advice. U.S. and UK tax rules change and individual circumstances vary. Consult a qualified tax professional with expertise in U.S. and UK tax before acting on any information here.
