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Original poster

Any US/UK dual citizens- streamline filing

47 replies

nicemarmot · 30/01/2018 13:49

Ok so I’ve made the horrible discovery that as a dual citizen I should have been filing US tax returns. I wondered if any Mumsnetters can tell me their experiences & any recommendations for accountants. Called British American Tax yesterday who were helpful & waiting on costing to come through but would like to compare with a few different accountants. Have a bad feeling this is going to be expensive!

OP posts:
Lisette40 · 30/01/2018 13:59

Oh Lord OP we've been there. Husband is an accidental American. He has back filed and renounced his citizenship. Between legal advice and US accountant it cost thousands. Some people would say file using turbo tax but to be honest we wanted the support of an accountant.

Lisette40 · 30/01/2018 14:01

We asked our UK solicitor to put us in contact with an accountancy firm which had contacts with an accountant in the us.

Lisette40 · 30/01/2018 14:05

That said nicemarmot it's worth it. After sorting this out dh was left a small bequest from an American relative. I shudder to think what would have happened if he had got this while not being tax compliant.

Original poster
nicemarmot · 30/01/2018 14:05

Do I need a solicitor for this too?!

OP posts:
Lisette40 · 30/01/2018 14:07

Don't panic! No you don't. He got advice from the accountant ( not solicitor) which we paid for.

Lisette40 · 30/01/2018 14:08

He needed to make sure he was making the right decision to renounce the passport so we had to work out the inheritance and other implications of keeping his citizenship

Lisette40 · 30/01/2018 14:10

As I did not hold a green card I have fewer rights as a spouse and, the us government saw our family home as completely his ( he pays the mortgage from his account). I was not best pleased.

Lisette40 · 30/01/2018 14:11

Actually we did get legal advice too but it's not really necessary. We backfiled 6 years.

Wellthatsit · 30/01/2018 14:12

Hope you don't mind me slightly hijacking, but my DS is a dual citizen (born in the US to British parents and we all live back in the UK). Will he need to file tax returns when he becomes an adult? We moved back when he was 2.

AveEldon · 30/01/2018 14:13

If you join American Expats in London on Facebook they have lists of recommended accountants etc

Lisette40 · 30/01/2018 14:15

wellthatsit yes, he will. There is a small window at around 18 to renounce citizenship without much problem otherwise it becomes expensive. But of course it may be more useful to keep the passport and submit tax returns.

Wellthatsit · 30/01/2018 14:17

Thanks Lissette. So once he's 18 he starts to file? (I think he may want to retain his citizenship).

Lisette40 · 30/01/2018 14:21

I think it's 18. If he has a low income he may not have to file unless he goes over the threshold ( check this). But he will also have to file fbars which are bank accounts over dollars 10,000. He may not be able to have stocks and shares isas so certain investments are out.

ArnoldBee · 30/01/2018 14:28

Boris Johnson had this issue and renounced his citizenship I believe.

Lisette40 · 30/01/2018 14:34

And I think paid a fortune on the sale of his London home to the IRS.

My us mil in Europe had a very low income and was told to stop filing years ago as her income never increased. But it never occurred to her that her European born kids would also need to file. I found out by accident on Mumsnet one day. That was a particularly bleak November day, I can tell you.

Original poster
nicemarmot · 30/01/2018 14:41

Thanks for the tip AveEldon, unfortunately one of the few people left not on Facebook! I’m 99% sure my kids aren’t US citizens but better double check. Lisette40- does your husband have ISAs & did they cause any issues?

OP posts:
Lisette40 · 30/01/2018 14:43

He has cash ISAs which were fine. Stocks and shares more of an issue.

Sohardtochooseausername · 30/01/2018 14:44

There’s a Facebook group called US Expat Tax questions which is run by an accountant - lots of useful info on there.

Unless you have loads of money you probably won’t have to pay US tax on top of UK tax. It’s just that you have to file, and this can be done by an accountant for a few hundred bucks.

Sohardtochooseausername · 30/01/2018 14:45

Oh sorry missed the bit saying not on Facebook. The company is www.universaltaxprofessionals.com/

Lisette40 · 30/01/2018 14:47

I think family homes are capital gains tax exempt in the UK but not in the US. So if you've bought a uk house and it's rocketed in value, the increase made might be subject to us tax if the house is sold.

TalkinPeace · 30/01/2018 14:49

I stopped worrying about filing when the IRS got fed up with paying money across to a family member - as UK tax s higher than US.

If you earn in total below $85000 (at 2016 numbers) they are not really interested as they will get no money from you.
UNLESS
you have earnings in the US

BJ got hit because he is VERY rich. The rest of us are not.

My biggest problem is trying to open any sort of bank account because of sodding FATCA

Wellthatsit · 30/01/2018 14:49

Thanks Lisette. It's a bit of a minefield isn't it? Sorry it has cost you so much.

Lisette40 · 30/01/2018 14:54

Or unless you inherit in the us. But if you are filing and then sell your family home anyway in the UK, that would have to be declared on the IRS form. I'd hope they'd leave people alone but we wanted peace of mind and so renounced.

Original poster
nicemarmot · 30/01/2018 14:59

That’s it Lisette, it’s the peace of mind. It’s been really worrying me since I found out & I don’t think it’s worth it. Doubt I owe anything but it’s just the hassle & expense of accountants. Need to decide if I want to renounce.

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