Tax Return

UK Tax Return Filing Deadline – It’s Getting Closer

It’s nearly the end of November meaning that it’s only just two months to go to file your Self-assessment tax return with HMRC.

If you file your return online before 30 December (and your tax balance is less than £3,000) your liability can be paid through PAYE. This does mean that the amount you get after tax and national insurance deductions will be smaller.

EDA Professional Services can assist in the preparation of your tax return, if you have yet to start. Please contact us using the form below and let us know what you require.

Scottish Flag

What Is The Effect of Scottish Independence on US Citizens

What would be the tax effect of Scottish Independence on US Citizens?

In order to claim Foreign Tax Credit on your US Federal Tax Return you must be paying taxes in a country that has a Double Taxation Agreement (DTA) with the United States.  Currently, the DTA is with the United Kingdom – not Scotland.  This means that should Scotland choose yes on 18th September, a new DTA would have to be agreed with Scotland.  It would have to be agreed in the interim period.

If no DTA is established until the actual day of independence, it would be possible that an American citizen living in Scotland could pay tax twice on the same income.

At the moment we can only speculate that may happen should the people of Scotland chose to be independent.

US Citizens are taxed on worldwide income no matter where they live.  If you have been living in Scotland and have been receiving income in Scotland (an no income from the USA) you may be required to prepare a US Tax Return.  You can claim the tax deducted from your salary as a Foreign Tax Credit to reduce your liabilities to the IRS.

If you are a US citizen living in Scotland and would like to discuss this, please do not hesitate to contact us at info@edaprof.co.uk.  We look forward to hearing from you.

US Citizens in the UK

Taxation of US Citizens in the United Kingdom

If you are a US Citizen (or a Green Card Holder) and that you are living in the United Kingdom, you may be required to still prepare a US tax return with the IRS.  This is because America taxes based on citizenship and not residence.  In addition, you will be required to declare worldwide income on Form 1040.

Depending on the level of tax that you may have to pay to the IRS, you could be have to prepare returns for a number of years if you have never prepared a return since leaving the USA.

If you are a US citizen living in the UK and would like to discuss this, please do not hesitate to contact us at info@edaprof.co.uk. We look forward to hearing from you.