Hello
Guest

Sponsored Links


Topic: UK Mid year Move - Periodic US Travel  (Read 896 times)

0 Members and 1 Guest are viewing this topic.

  • *
  • Posts: 2

  • Liked: 0
  • Joined: Mar 2015
UK Mid year Move - Periodic US Travel
« on: March 25, 2015, 02:49:43 PM »
Hi there! I don't think my situation is all that unique, and I've made an effort to try to understand it all. However, I'd really appreciate someone sense checking my situation.

I worked for a US company Jan - July 2014 before taking a job in their UK office Aug through remainder of the year (am still employed there). I am on an ICT visa, but I have taken a local position (not an expat package) with no end date and have no intention of returning to the US.

My job does require occasional travel back to the US for a day or two at a time. I also (foolishly) spent a long holiday in December with family that puts me close to the 35 days outside of a foreign country (although I will qualify for PPT if I try). The rules on international flights make short trips count many more days.

My understanding is I can qualify for PPT for 2014 year (and bonafide for 2015, not 2014), but I don't want to have to worry about counting days.

Can someone affirm my strategy?

1) File all US income as normal
2) Declare all of UK gross income (Do I subtract anything I put into a qualifying employer pension plan?)
3) Subtract UK Income tax paid on Form 1116.

I show myself owing $500 or so on the UK income (and some others on US capital gains) which seems reasonable.

Thanks!


  • *
  • Posts: 2638

  • Liked: 107
  • Joined: Dec 2005
Re: UK Mid year Move - Periodic US Travel
« Reply #1 on: March 25, 2015, 07:17:26 PM »
It seems an unconventional strategy.

There are some US workdays post move so there will want to be some treaty resourcing and possibly State filing for income attributable to those workdays.

You might want to elect into the treaty in any case in relation to the UK pension scheme.

You'd have to pay the healthcare penalty if you filed this early.

I'd extend until 2015 by which time you'd know if BFR or claiming FTCs were the optimum answer and simply file the FBAR by 30 June.
« Last Edit: March 25, 2015, 07:19:04 PM by guya »


  • *
  • Posts: 2

  • Liked: 0
  • Joined: Mar 2015
Re: UK Mid year Move - Periodic US Travel
« Reply #2 on: March 25, 2015, 08:22:10 PM »
I plan on staying in the UK for 2015 (and beyond). Does this mean I can claim BFR for 2014 (from the time I moved to UK)? How would this work if I can only extend until October?

BFR should take care of the business trips, shouldn't it?

Thank you Guya (and all)!


Sponsored Links