How to align UK tax year and US tax filing

Hi All,

Sorry if this is something that has been previously dealt with here.

As I started receiving SS this year, I will have to pay UK tax for the first time next April, and would appreciate assistance with how to go about this somewhat complicated process.  The SS goes into my UK bank each month, but all my assets (liquid) are in the US.

Thanks!

First thing I would do now is register for self assessment with HMRC. You can do this online and it can take a few weeks to complete the registration and be issued with a UTR (unique taxpayer reference) which is used to file self assessment returns.

https://www.gov.uk/self-assessment-tax-returns

I expect your return will be simple enough to do yourself including any income you receive from the US liquid assets you mentioned. I’m assuming that so far you have not had enough income from the US to reach the HMRC taxable threshold. From your earlier posts it is not clear if you decided to file a US tax return for 2022, but now that you are receiving SS I think I would file a US tax return ongoing as the IRS will start receiving a copy of your SS tax statements.  You still won’t owe any US taxes because on the line on the 1040 where you report your SS (line 6a and 6b) it should show the full amount with the taxable amount as zero since the tax treaty states that SS is only taxable in the UK for residents there. (That is the case for my wife who has been receiving SS this last couple of years).

Hi All,

Sorry if this is something that has been previously dealt with here.

As I started receiving SS this year, I will have to pay UK tax for the first time next April, and would appreciate assistance with how to go about this somewhat complicated process.  The SS goes into my UK bank each month, but all my assets (liquid) are in the US.

Thanks!

US social security pension is only taxed by the United Kingdom. You would file Form 8833 in the US each year electing to claim the treaty.

Thank you both.  I did file for 2022 with IRS and will contact HRMC to get registered. And then hope it all proves to be simple to file next year.
Do you align the filing dates in any way?

Do you align the filing dates in any way?

For our HMRC returns we put a comment stating that for the purposes of easier reporting and foreign tax credit calculations that we take the US tax year as concurrent with the UK tax year.  That way we can use our W2, and 3 or 4 1099's as-is and don't have to keep a separate track of April to April monies.  The first HMRC tax year for us was 2016/17 which was calculated as a split year then since then our US income has been taken directly from our W2 and 1099s.  (For further simplicity I make a point of not selling any fund shares between Jan 1st and April 6th as they have actual dates of sale that need to be entered on the HMRC returns)