Names of UK/US Tax and/or Social Security Advisor to employee

Hi Folks,

My husband and I have lived here for 13 years.  In that time I have somehow not reported our change of address to Social Security or reported my income to them.   My  husband is retired and has  his Soc Sec deposited in a US bank but would like to have it changed to be deposited here.   I will be retiring in the next 3 years.

We also have not filed any tax returns. 

So I am scared spitless about how to resolve these issues and have tried to call Soc Sec to start with but they sent me from one phone number to another with a ONE HOUR wait time on it.

I am thinking that I need to employ someone to  help me resolve all this so my question is who can I employ to give me guidance on these matters?  Looking for specific names if possible or how I determine if someone is qualified.

Thanks in advance.

Kathleen

Not filing a tax return (and potentially a FBAR) is your main issue. If both of you are US citizens, you should have done that, as you now realize. Your husband should have filed a self-assessment in the UK to report the SS income, assuming you claim the arising basis. Under the US-UK tax treaty, that income is reportable to the US, but only taxed in the UK.

For SS, you need to contact the Federal Benefits Unit at the US Embassy in London. They will sort out the direct deposit to a UK bank. When you retire, you will make the application via the FBU as well.

There are knowledgeable folks who will come along and provide input on ways to become compliant, but I would suggest doing some reading as well to see whether you should have been filing a FBAR (now FIN-CEN 114).

Kathleen, it's a really scary situation that you're in but it's one that we see all the time here. There is nothing that can't be taken care of.

The experts should be along soon to point you in the right direction. 

The Streamlined Procedures should help with coming into compliance with US tax law.  Google IRS and Streamlined Procedures to find information.

But for the unpaid UK tax, I don’t know if there is a disclosure programme.  Someone more knowledgable than I may be along soon to answer that question.

The UK deadline to notify HMRC through the disclosure facility is 30 September 2018. This date is not changeable.  Parliament decided that last year. https://www.gov.uk/guidance/requirement-to-correct-tax-due-on-offshore-assets

https://www.gov.uk/guidance/worldwide-disclosure-facility-make-a-disclosure

There is no equivalent date in the States, but most folks would use the streamlined procedures to catch up.

How do I get a UTC to file the FBAR?  Do I and my husband need separate ones?  we always filed a joint tax return in the States.

If USC person resident in the UK had US-based income that they are sure is non-taxable in the UK, and is well under the personal allowance in the UK, anyway, are they required to report it to HMRC?  Assume the income is reported properly in the US (where it is non-taxable), and that the person has no other income anywhere in the world.

If USC person resident in the UK had US-based income that they are sure is non-taxable in the UK, and is well under the personal allowance in the UK, anyway, are they required to report it to HMRC?  Assume the income is reported properly in the US (where it is non-taxable), and that the person has no other income anywhere in the world.

As I understand it, you report worldwide income to the UK and if you believe it’s exempt from UK tax you explain why. 

If it’s below the threshold it doesn’t affect the calculation of tax due, so I guess the question is, does that mean you don’t need to file a return.  You could ring HMRC and ask?  Or email so you get an answer in writing.

As I understand it, you report worldwide income to the UK and if you believe it’s exempt from UK tax you explain why. 

If it’s below the threshold it doesn’t affect the calculation of tax due, so I guess the question is, does that mean you don’t need to file a return.  You could ring HMRC and ask?  Or email so you get an answer in writing.

There is a section on the HMRC self assessment form, nicknamed “White Space”, where you can give explanations or other info such as to report US income that is not taxed in the U.K. In my case it is withdrawals from from my Roth IRA which is tax free in both countries.

How do I get a UTC to file the FBAR?  Do I and my husband need separate ones?  we always filed a joint tax return in the States.

My wife and I both file FBARs each year as we both have accounts over $10k. Not sure what a UTC is in this respect. We use our SS numbers as identifiers.

There is a section on the HMRC self assessment form, nicknamed “White Space”, where you can give explanations or other info such as to report US income that is not taxed in the U.K. In my case it is withdrawals from from my Roth IRA which is tax free in both countries.

Does it need to be reported at all, if it’s non-taxable and below the threshold and there’s no other income?

Does it need to be reported at all, if it’s non-taxable and below the threshold and there’s no other income?

If it is non taxable for reasons such as my Roth distributions, or maybe a US government pension being covered under the US/UK tax treaty then I report it, otherwise HMRC may see I have US income through the arrangement the 2 countries have in reporting income, and then audit my return. I prefer to give full disclosure. I would not expect HMRC to see foreign income not reported on my return and do their own investigation as to why I have not reported it. When it comes to taxes the IRS and HMRC consider you guilty until proved innocent.

If USC person resident in the UK had US-based income that they are sure is non-taxable in the UK, and is well under the personal allowance in the UK, anyway, are they required to report it to HMRC?  Assume the income is reported properly in the US (where it is non-taxable), and that the person has no other income anywhere in the world.

Is there any UK income, or any other income? If the combined total US and UK income, including UK interest, dividends as well as UK earned income covered by PAYE, is greater than the personal allowance, then a UK Self Assessment must be filed and an appropriate declaration for why the US income is not UK taxable made in the 'white space'.

oops, forgot the other bit:
EDIT TO ADD:
In my opinion, if the total global income is below the personal allowance, then the standard rules apply and no self assessment is required. I may be wrong, and I agree with durhamlad - reporting, even if below the threshold, would not be a bad thing. If HMRC are unhappy that you've filed, they'll tell you (with no penalty).

Is there any UK income, or any other income? If the combined total US and UK income, including UK interest, dividends as well as UK earned income covered by PAYE, is greater than the personal allowance, then a UK Self Assessment must be filed and an appropriate declaration for why the US income is not UK taxable made in the 'white space'.

No, there is no other income at all.  Just the one US based income that is ot taxable and below the UK personal allowance.

No, there is no other income at all.  Just the one US based income that is ot taxable and below the UK personal allowance.

I would say that if your worldwide income is below the reporting threshold (£11,850?) then no need to file a return.