Settling in the UK as a U.S. Citizen
Moving across the Atlantic is a big step. While the U.S. and UK share strong cultural ties, life here operates differently in terms of taxes, healthcare, and even daily living. If you’ve just arrived, having a roadmap will make your transition much easier.
This article covers the essentials—visas, healthcare, finances, lifestyle adjustments, and your US tax guide in UK.
1. Immigration and Visa Rules
The first thing to check is your visa status. Whether you’ve arrived on a Skilled Worker visa, family visa, or student visa, each comes with specific rights and restrictions. Be sure to:
- Track your visa renewal dates.
- Understand if your visa allows work or business activity.
- Keep records of your residency for tax and immigration purposes.
2. Healthcare and the NHS
One of the biggest differences from the U.S. is healthcare. The UK’s National Health Service (NHS) provides publicly funded care. Once you’re a resident, you’ll usually pay a healthcare surcharge as part of your visa application, giving you access to NHS services.
Private healthcare is also available, but many expats find the NHS sufficient for most needs.
3. Banking and Finances
Setting up a UK bank account is essential for daily life. Most banks will require proof of address (such as a rental agreement or utility bill) and proof of identity. Digital banks like Monzo and Revolut are also popular among newcomers.
Be mindful of currency exchange rates and fees when transferring money between the U.S. and UK.
4. Lifestyle Differences You’ll Notice
- Work culture: The UK generally emphasizes work-life balance, with more vacation days than in the U.S.
- Transport: Public transportation—especially the Tube in London—is widely used, reducing reliance on cars.
- Language quirks: Even though it’s English, you’ll encounter plenty of British slang and spelling differences.
5. Your US Tax Guide in UK
This is one area many Americans overlook. Even after moving, you must continue filing U.S. tax returns every year. The U.S. taxes citizens on worldwide income, no matter where they live.
Here’s what you need to know:
- Annual Filing: U.S. expats in the UK must file Form 1040 each year.
- Foreign Earned Income Exclusion (FEIE): You may exclude up to $126,500 (2024) of foreign income if you qualify.
- Foreign Tax Credit (FTC): Since you’ll also pay UK taxes through HMRC, you can claim credits to avoid double taxation.
- FBAR & FATCA Reporting: If your UK bank accounts exceed $10,000 at any time, you must file FBAR. FATCA rules may also apply if you hold significant foreign assets.
Tip: Many expats rely on professional help to navigate filing U.S. and UK taxes together.
6. Tax Obligations in the UK
As a UK resident, you’ll also pay taxes to HM Revenue & Customs (HMRC). Most employees are taxed at the source through the PAYE (Pay As You Earn) system. If you’re self-employed, you’ll need to file a Self Assessment tax return each year.
FAQs for U.S. Citizens Who Just Moved to the UK
Q1: Do I have to file U.S. taxes if I pay UK taxes?
Yes. Filing is mandatory, but credits and exclusions usually prevent double taxation.
Q2: How soon do I get access to NHS services?
After paying your visa’s health surcharge, you’re typically covered as soon as you register with a local GP.
Q3: Can I keep my U.S. bank accounts while living in the UK?
Yes, but you’ll need to report them to the IRS if balances exceed reporting thresholds.
Q4: Is my UK pension taxable in the U.S.?
Yes, U.S. reporting rules apply. You may need professional help to avoid overpaying.
Conclusion
Relocating to the UK opens up new experiences, from cultural richness to professional growth. But while life may feel smoother in many ways, don’t forget about your ongoing tax obligations.
With the right planning and awareness of your U.S. tax guide in the UK, you can enjoy life abroad without financial stress.
