HMRC Credit Card Payment

I have a large self assessment payment to make by January 31, 2019.  I saw that you can pay the HMRC with a debit card or a corporate credit card....I only have a US personal credit card.  How do they know if it's a personal or corporate card, is it based on the name on the card?  Has anyone tried to pay with a personal credit card and had it go through?  Maybe it's stupid but I'd prefer to pay with my credit card and then pay that with my US bank account than have to transfer money to UK account to pay with a UK debit card.

Also, it seems like I also need to pay 2019 in advance, from reading online it seems like you pay what they estimate your next year tax will be by January 31, 2019 and then pay the second payment by July 31, 2019....then if you owe less the next tax year you get a refund, or if you underpaid, you pay the remainder by January 31, 2020.  Is this correct?  It just seems like a lot for me to pay all at once but I guess it's worst the first year.

I think I'm supposed to get some sort of certificate from somewhere with regards to the Totalization Agreement so that I can show I am exempt from self employment tax in the US.  Does anyone know how I go about getting this certificate to send to the IRS?  I assume I can't get that until I actually pay the self assessment tax to the UK...how do I exempt myself from self employment tax if UK tax is not yet due?

Can't wait to see how Virginia will tax me, I still can't figure out if there is a way to exempt state tax to VA, I've read two different answers....might just have to call them to check.

Also, it seems like I also need to pay 2019 in advance, from reading online it seems like you pay what they estimate your next year tax will be by January 31, 2019 and then pay the second payment by July 31, 2019....then if you owe less the next tax year you get a refund, or if you underpaid, you pay the remainder by January 31, 2020.  Is this correct?

Yes, if you have underpaid for the tax year involved this is how HMRC handle the additional tax due. Since this year has resulted in an underpayment, and if either an increase to a Tax Code cannot be made or the amount due is beyond a certain threshold, then they ask for pre-payments in Jan. and July for the following year. If you feel the estimate is incorrect, you can contact HMRC to have the Jan/July payments reduced, BUT, if it turns out you were incorrect and tax will be due, you'll pay a penalty amount.

For any given (calendar) tax year, make sure you pay HMRC by 31 December if you wish use an offset for the tax paid (FTC method on 1116) on a US 1040 return for that same calendar year.

I'm unable to comment on your other questions. For the credit card, call HMRC or check the GOV.UK site.

Yes, if you have underpaid for the tax year involved this is how HMRC handle the additional tax due. Since this year has resulted in an underpayment, and if either an increase to a Tax Code cannot be made or the amount due is beyond a certain threshold, then they ask for pre-payments in Jan. and July for the following year. If you feel the estimate is incorrect, you can contact HMRC to have the Jan/July payments reduced, BUT, if it turns out you were incorrect and tax will be due, you'll pay a penalty amount.

For any given (calendar) tax year, make sure you pay HMRC by 31 December if you wish use an offset for the tax paid (FTC method on 1116) on a US 1040 return for that same calendar year.

I'm unable to comment on your other questions. For the credit card, call HMRC or check the GOV.UK site.

So I moved here May 2017 03/05/2017), this is my first tax reporting since moving here, my US taxes are the 2017...in turbo tax I did foreign earned income exemption based on being out of the country fo 330 days, but bc I visited the US in November and December last year I can’t file US tax until end of September this year to qualify...am I doing it wrong?  I did not do the foreign income tax credit.  Do I have to pay my UK taxes before January 2019 due date in order to use the foreign earned income exemption?  I did answer that the income was subject to tax in another country..which I believe is correct since the UK tax year includes my 2017 income.  I hired an accountant for UK tax for this first year an self assessment is going to be high, I can pay it early if needed for US....just don’t know if I need to, bc I may not be able to pay until October after US tax filing date.

......  I did not do the foreign income tax credit.  Do I have to pay my UK taxes before January 2019 due date in order to use the foreign earned income exemption?

No, paying UK tax by 31 Dec. is generally only important if you are using the Foreign Tax Credit method (1116) since it is based on foreign tax paid. The FEIE is based on the amount of income during the year.

If I move money from my US account to my husband's account in the UK that is in his name only, does that trigger FBAR reporting?  I assume it doesn't since I'm planning on continuing to file as Married, filing separate.  I was wondering if I can just move the funds to my husband's account without 1) creating FBAR reporting for myself in the next tax year 2) create an issue for him to have to report UK tax, it's not income for him, so not sure if a transfer like that would be deemed a gift in UK and if so...I think that's fine b/c gifts to spouse I think are not taxable in the UK.

Any thoughts?

If I move money from my US account to my husband's account in the UK that is in his name only, does that trigger FBAR reporting?  I assume it doesn't since I'm planning on continuing to file as Married, filing separate.  I was wondering if I can just move the funds to my husband's account without 1) creating FBAR reporting for myself in the next tax year 2) create an issue for him to have to report UK tax, it's not income for him, so not sure if a transfer like that would be deemed a gift in UK and if so...I think that's fine b/c gifts to spouse I think are not taxable in the UK.

Any thoughts?

I believe your thinking is correct assuming that you do not have signatory authority over his account. If the account is in his name only and you cannot withdraw money from it then it is not an account you have to consider for FBAR.

Transferring money between spouses is not considered a gift in the UK. My wife and I do it all the time. I currently have pensions with by far the largest being in the USA. I pay UK tax on those pensions but then transfer most of the money to my wife's savings accounts so she pays UK tax on the income those savings generate, not me. No UK or US gift tax issues at all.  For FBAR then each year I just have our joint bank checking account to report while her FBAR report includes that one plus her UK savings accounts. I suspect that I may not have to do an FBAR at all if she adds me onto her report for the joint checking account.

I have a large self assessment payment to make by January 31, 2019.  I saw that you can pay the HMRC with a debit card or a corporate credit card....I only have a US personal credit card.  How do they know if it's a personal or corporate card, is it based on the name on the card?  Has anyone tried to pay with a personal credit card and had it go through?  Maybe it's stupid but I'd prefer to pay with my credit card and then pay that with my US bank account than have to transfer money to UK account to pay with a UK debit card.

The reason for not accepting personal credit cards is explained here:

https://www.gov.uk/guidance/withdrawal-of-personal-credit-card-payments-cip29

Since HMRC would need to be able to distinguish between personal credit cards and corporate credit cards, in order to comply with EU law, presumably they can tell the difference.  Perhaps it’s embedded in the card chip, or simply in the number.

I was saw some online article about IRS seizing full bank account funds bc people were doing multiple transactions under 10k to avoid FBAR.  This is supposedly to tackle those doing this to avoid FBAR reporting bc they have funds obtained illegally but apparently IRS has seized funds that are rightfully owned by individuals and then the person has to fight to get them back. I am in the middle of moving money now to pay UK taxes then need to move more after I pay taxes for rent and council tax.  Normally I try to move enough rent for a full year (rent is low were I am)...now worried this will flag something somewhere. 

Last year I just did a few smaller transfers bc no tax fee was due.  Anyone know or heard of this actually being a thing that happens?

Are the individuals in the articles moving money to high risk countries? I hadn't seen that, but admittedly haven't gone looking for it. That's quite disturbing, and highway robbery!

Sent from my Nexus 5X using Tapatalk

Are the individuals in the articles moving money to high risk countries? I hadn't seen that, but admittedly haven't gone looking for it. That's quite disturbing, and highway robbery!

Sent from my Nexus 5X using Tapatalk

The one I read it was to Mexico, so maybe.  There was also a law firm that talked about this but in their scenario is was high $$ they gave an example of $1 million that a guy transferred to multiple accounts of diff individuals but for valid cause...that I can see raising flags.  I guess I am intrested in finding out what the threshold is, how often and how much etc.  But after seeing it on a law firm's site I figured it's a real thing, just wondering how likely this.  Last thing I wanted was something else to worry about with IRS...though I did get a refund recently so fingers crossed that means I did my return ok...though I think they get like 7 years or something to find errors....still waiting on state tax. 

I was saw some online article about IRS seizing full bank account funds bc people were doing multiple transactions under 10k to avoid FBAR.  This is supposedly to tackle those doing this to avoid FBAR reporting bc they have funds obtained illegally but apparently IRS has seized funds that are rightfully owned by individuals and then the person has to fight to get them back. I am in the middle of moving money now to pay UK taxes then need to move more after I pay taxes for rent and council tax.  Normally I try to move enough rent for a full year (rent is low were I am)...now worried this will flag something somewhere. 

Last year I just did a few smaller transfers bc no tax fee was due.  Anyone know or heard of this actually being a thing that happens?

Yikes, I hope not. I routinely transfer small amounts from US to UK to pay bills etc, and intentionally keep my UK accounts well under the $10K to avoid having to do the FBAR. Why do the US make everything so difficult for expats?. It's my legitimate money that I earned and paid tax on in the US, and now pay UK tax as it's classed as a pension (claiming FTC on my returns).

I regularly transfer sums under $10k from the US to the UK but I’m not worried because it is all completely transparent. I file US taxes every year as an overseas resident living in England so my income from US sources, pensions and retirement accounts, easily covers the transfers,  and the total sums are well within what could be expected for me to spend in the course of a year. (In my case I also report some accounts with my FBAR filings which are not huge, certainly not large enough to report with forms 8938 on my IRS filings)

And with the pound tanking - it's $1.25 now - it's probably good to watch your bank balance if it's much over 7,500 pounds and you don't want to have to deal with the FBAR.  Because in dollars that's rather close to 10K.

And with the pound tanking - it's $1.25 now - it's probably good to watch your bank balance if it's much over 7,500 pounds and you don't want to have to deal with the FBAR.  Because in dollars that's rather close to 10K.

The lower the pound is against the dollar the less likely you are to need to deal with FBAR. £7,500 at $1.30 = $9,750, and at $1.25 it is $9,375