IRA if you pay UK taxes, and other basic USC in the UK personal finance question

These are really naive questions, I apologize.

For those who are self-employed, how are you banking/investing/managing your retirement? Does it simply depend on where you are paying taxes? Or where you plan to ultimately live the end of your life?

At the moment, I'm self-employed and all my clients are US-based businesses, my fees are paid to my US account. I'm not sure what will happen once in the UK: I might continue to work as I am, I might shift to have exclusively UK-based clientele, or I might simply work for a UK-based company. Basically, I am confused about investing as my current income being solely paid (for the time being) to my US account.

I was told I'm no longer eligible to hold my Roth IRA because I will be paying UK taxes in 2010. (I believe I will be paying US taxes this year, because I have been living and working in the US from Jan-Sep 2009. Please don't flame, but I don't know if I need to pay UK taxes for my UK residence period of Sep 2009-Apr 2010? My accountant is zero help on any of this. :/) Anyway, those questions aside, my big questions for now are:

Are there any complications with having savings, money market, stocks, IRAs in the US while living, paying taxes in the UK? As you can see I'm in major need of "USC-in-the-UK personal finance 101". Again, please don't flame me for my green questions. Thank you for any help you might be able to offer about how USCs (who plan to keep their citizenship) are managing their money.

Just to add to my above questions about investing/banking rules for expats:

1. An acquaintance (French living in the UK) advised that I consider the domiciled/non-domiciled rules before I commit to banking/investing in the US. She said that if I am domiciled I would have to pay 30,000 on arriving to the UK for my assets in the States.  What is this all about?

2. And just to simplify my above questions: Are there any expats here who continue to bank/invest in the States while they reside in the UK? Is it possible? What kind of tax details should we look out for?

Just to add to my above questions about investing/banking rules for expats:

1. An acquaintance (French living in the UK) advised that I consider the domiciled/non-domiciled rules before I commit to banking/investing in the US. She said that if I am domiciled I would have to pay 30,000 on arriving to the UK for my assets in the States.  What is this all about?

2. And just to simplify my above questions: Are there any expats here who continue to bank/invest in the States while they reside in the UK? Is it possible? What kind of tax details should we look out for?

I don't know the answers to your specific questions, but - as a US Citizen, you'll have to file your US tax return for the rest of your life, wherever you live & whatever the source of your income etc.  This is all governed by the US -UK Tax Treaty; it's easy to find the text of this online.  It's pretty complicated and I think many people choose to get professional tax preparation help.  One thing I do know, if you have an annuity from a 403b or some other form of retirement income from the USA, they are obliged to withhold 30% in withholding in order to "encourage" you to file your 1040.  I think this applies to your Social Security income too. 

For better or for worse, this is my own situation and understanding:

My financial advisor in the US told me I wasn't allowed to contribute to my IRA anymore, once I was no longer earning US income (despite the fact that I'd been contributing from US-earned savings which had already been taxed), so I stopped. I keep US accounts for various reasons (IRAs, savings, checking).

I had some discussions with HMRC last year about my UK taxes (which I had to file online) and they told none of my US finances mattered in the UK because it was all earned there, taxed there, and stayed there (and mine was also from self-employment).

The first year in the UK, while you're still setting up your bona fide residence or physical presence test can be a pain tax-wise in the US, but HMRC wasn't interested in it (no one flame me for this, please, I had many conversations with HMRC and filed per their instructions).

That being said, I don't know how it works if you earn USD while in the UK. Think you should find a tax advisor who understands both the US and UK tax laws and can help you sort out your questions.

HTH.

An IRA has no special treatment in the UK unless you elect to use the US/UK treaty on a UK tax return.  Self- employment income is likely to all be taxable in the UK.

UK tax law for non-UK domiciliaries changed significantly from 6 April 2008.  It is unlikely that many non-UK  domiciliaries could file online in the UK.

You should probably read the HMRC guidance on the remittance basis (yes it is 302 pages and is wrong on the law at some points but it is relevant).
http://www.hmrc.gov.uk/cnr/rdrm-remittances.pdf


It can be found here as well:
http://www.hmrc.gov.uk/cnr/res-dom-tax-amends.htm