Total Cluster Approaching I'm afraid

I don't even know where to start...

Wife's company is giving her a 1 year stint in UK starting in March of 2017. The whole family is planning on going for it (2 kids and myself). 

I own my own company here in the US (it's categorized as a Sub Chapter S of which I own 50% with my business partner.  We also own two properties here - one which is currently being rented, and the second one we will rent once we move over to the UK.

I will travel back and forth to the US for work, but predominantly will be in the UK for the 1 year stint. 

I don't even know where to begin on all the tax ramifications as the more I read the more confused I get. 

I didn't think I would have anything to do with the UK tax system as my business has zero revenue/clients outside the US, and my rental properties are here as well, but now I am a bit concerned.

Any help is appreciated.

Thanks

As you will be a resident of the UK, you'll pay tax first to the UK and then use either tax credits or the foreign earned income exemption when filing your US taxes.  Not going to lie, your taxes sound as though they are going to become very complicated.

Will your wife's company be providing tax assistance in both the US and UK as a part of her work assignment (very standard in expat assignments)?  They should also provide tax equalization so that you are "whole" as UK taxes tend to be higher than US taxes.

But surely as the U.K. Taxes individuals and not families, regardless of the wife's filing status the poster can claim non dom status (for the first seven years of his stay) and declare zero and pay zero as long as they only live on the wife's U.K. (Taxed) salary and he brings no money into the country


Sent from my iPhone using Tapatalk

They will be providing the tax equalization for her.  I'm not factored into the equation at all.

I hadn't really been focusing on this until now as it seemed so far off, but between reading up on the bona fide residence - which neither will of us fall into since the tax year and calendar year don't align and it's only 1 year (for now), remittance vs arising basis, PAYE, etc this thing is completely overwhelming to the point that I just want to bury my head in the sand and say screw it.

No-one in the UK would have an S-Corp. Can you give your shares to the other owner before you leave and simply take a salary? Will your wife's employer not pay for tax advice for you from a dually qualified US/UK professional.

Not worth trying to restructure ownership.  Biggest benefit of the S corp is to be able to give out distributions instead of payroll/salary as it reduces payroll taxes in the US.  If it was for longer than a year, then may be something to look into perhaps.

I think your wife needs to go harder with her negotiations for the expat package.

I assume the company is covering YOUR visa, etc.?  I can understand them not providing you with tax equalization for your company.

They absolutely should provide both US and UK tax assistance for the entire family.  They should cover the rental properties as part of your wife's income. 

Here's a piece of advice based on experience, look at the resident/non-resident rules for the first tax year (April 6 2017-April 5 2018) and make sure your wife will meet the non-res (< 46 days in UK during the tax year) criteria.  My husband moved in the prior tax year and if you're not clearly res or non-res based on number of days in UK it gets really complicated and time consuming trying to determine status!  We had a couple of vacation trips to UK prior to the move, and this ended up with my husband being in the UK for 53 days in the tax year.  So now we are condemned to calculating where he worked, and how many hours, for the entire year, in order to determine his status!  Not easy when he worked in US, UK, Switzerland, Canada and Germany!
Julia