UK Pension for US citizen

Hi everyone,

Sorry for the newbie question but becoming a little overwhelm with all the intricacies.

As a UK resident with a US citizenship, I am considering opening a company pension for my limited UK company. I am the only director/employee. Since I believe that I have only until April 5 to make company contributions, what would be the best way to go about without running afoul from either the UK or US Tax perspective?

From some posts I learned that I should stay clear of self-invested personal pension (SIPP) or individual savings account (ISA).

As such, if I opened a defined contribution scheme via Nestpensions.org, would this be compliant for both UK and US Tax perspectives? If not, any suggestion which is both is easy and fast to set up while compliant?

Thanks a lot in advance!

Hi everyone,

Sorry for the newbie question but becoming a little overwhelm with all the intricacies.

As a UK resident with a US citizenship, I am considering opening a company pension for my limited UK company. I am the only director/employee. Since I believe that I have only until April 5 to make company contributions, what would be the best way to go about without running afoul from either the UK or US Tax perspective?

From some posts I learned that I should stay clear of self-invested personal pension (SIPP) or individual savings account (ISA).

As such, if I opened a defined contribution scheme via Nestpensions.org, would this be compliant for both UK and US Tax perspectives? If not, any suggestion which is both is easy and fast to set up while compliant?

Thanks a lot in advance!

Stay clear of a stocks and shares ISA. You are probably OK with a SIPP and the NEST program as they are both defined as pension plans within the UK with definite restrictions on withdrawal dates. The pension wrapper should insulate you from PFIC issues and allow you to avoid US and UK tax until income is drawn. I would take the time to get some professional advice in your situation.

Has the foreign entity that you own made a check the box election?

Has the foreign entity that you own made a check the box election?

I see many people creating limited Companies rather than just becoming self employed (sole proprietor) which seems to be far simpler. Why is this? Is it so that dividends rather than wages can be paid? or for liability reasons.