High Paying Job

Hi,

I recently moved to the UK and ear a decent living (£50K). I am thinking about changing jobs but have not started a job search yet. Primary goal is to get as close to 70K as possible.

Now thinking about it, is it worth for me to get a job paying around £70K knowing that fact that I am paying high taxes here in the US and will end up paying a lot of tax in the US as well? Is all that hard work I will be putting into the new job worth anything other than more taxes? I am not sure how US taxes work for foreign income yet. I know they give you break for up to US$85K or so and after that they tax you but I don't know what is the percentage you pay.

Is there a way to avoid paying US taxes?

Please, I am not looking for right vs. wrong debate. I work VERY hard to make the money I earn and I am already paying a fare share of the taxes here in the UK. I did the same when I was in the US as well.

Any thoughts, ideas?

Thank you in advance.

Unless you work in the States or have other non-UK income & gains you are unlikely to owe US taxes on either income level because UK taxes are typically higher than US taxes and the US gives you credit for UK taxes on the earnings that are not excluded.

Go for it!

Guya, thank you for your reply. Just to Clarify:

If I have the following scenario, I will most likely not have to pay any US taxes? I am just looking for an educated opinion, not full blown accounting :-)

UK Salary: £75000
UK Taxes: £27000 (Assumption, Estimate)
UK Net: £48000 (just an estimate)

US Rental Income: 36,000
US Mortgage Expenses: 46,000
Net Loss: 10,000.

Once last question, do I show my US homes on my UK tax filings? If yes, can I offset my rental income with mortgage expense to show loss?

Thank you.

I have just run the UK numbers through a calculator, and find :-

Salary                                            £75000
less UK Income Tax      20600
less National Insurance  4150
                                                        24750

Net Pay                                         £50250

Hope this helps.