Standard
$119per federal returnUSD
- US and overseas employment income
- Bank interest and ordinary dividends
- Foreign income exclusion, if eligible
COUNTRY GUIDE · UNITED KINGDOM
US taxes for Americans living in the UK.
A US calendar year that overlaps two UK tax years, UK payroll records that follow the UK tax year, and US rules that reach worldwide income. This guide covers a 2025 calendar-year US federal return.
2025 calendar-year return · Reviewed 22 October 2026
TAX YEARS
The US year overlaps two UK tax years.
The UK tax year runs from 6 April to 5 April. This guide uses the US calendar year, 1 January to 31 December 2025. So one US year draws from parts of two UK tax years.
US 2025 CALENDAR YEAR1 January to 31 December 2025
| Part of US 2025 | UK tax year | That UK year runs |
|---|---|---|
| 1 January to 5 April 2025 | 2024/25 | 6 April 2024 to 5 April 2025 |
| 6 April to 31 December 2025 | 2025/26 | 6 April 2025 to 5 April 2026 |
UK RECORDS
What your UK paperwork means for the US.
A suggested list for US preparation, not a legal list. It organises your records and does not replace either country's recordkeeping rules. HMRC says records are needed if you must send a Self Assessment return, and self-employed people must also keep records of business income and outgoings.
| Record | What it shows | Why it matters for the US return |
|---|---|---|
| Payslips and payroll detail | Pay dates, gross pay, tax deductions and any corrections, per employer. | Keep January to December 2025 so you can check US-year figures behind an annual UK summary. |
| P60 | Salary tax for one UK tax year (6 April to 5 April). A separate P60 for each job, each tax year, where issued. | Covers a UK year, not the US calendar year. Reconcile it against dated pay records; splitting a P60 total into twelve equal pieces is not a substitute for those records. |
| P45 | Your leaving date, and total pay and tax from 6 April until the date you left. | Not a full calendar-year summary. Keep it with the matching payslips. |
| Self Assessment, if it applies | The submitted return, tax calculation, assessments and dated payment or refund records. | Dated records to keep for any foreign tax you claim. |
| Bank and investment statements | Interest, dividends, sales, account ownership, balances and assets held, including ISAs and other investment wrappers. | Shows the income and the accounts to check for FBAR and Form 8938. |
| Travel and pension records | Residence and travel dates; pension plan documents, contributions and distributions. | Facts for an exclusion or pension and reporting review. A UK address alone does not settle eligibility. |
US RULES THAT APPLY
The US rules that follow you to the UK.
US citizens and resident aliens generally report worldwide income, including UK earnings.
FEIE
Foreign earned income exclusion
Needs foreign earned income, a foreign tax home, and bona fide residence or 330 full days of physical presence. A UK address alone is not enough; pensions do not count, and it does not reduce self-employment tax.
Exclusion guide FTCForeign tax credit
Qualifying UK income taxes may support a credit. Not every charge qualifies, and there is no credit for tax on income you exclude. Keep tax period and payment records.
Credit guide FINCEN 114FBAR
Generally applies when foreign accounts you have a financial interest in or signature authority over exceed $10,000 in aggregate at any time in the calendar year.
FBAR and Form 8938 FATCAForm 8938
Different asset and threshold rules, attached to the return when required. It and FBAR do not replace each other. Foreign pension interests can be reportable.
Compare the two PFIC · 5471ISAs, funds and companies
A PFIC may need Form 8621, which the Investor plan prepares with limits, for 2025 returns and, on paper, 2022 to 2024 returns; certain foreign-company officers, directors or shareholders must file Form 5471. Get guidance on the actual holdings first.
Investment scope TREATYThe US-UK treaty
The IRS publishes the treaty, technical explanation, protocol and exchange of notes (listed as 2001). This guide does not determine a treaty claim.
US filing basicsPOUNDS TO DOLLARS
Every amount in US dollars.
Amounts on the US return must be in US dollars. IRS guidance generally uses the exchange rate prevailing when an item is received, paid or accrued. The IRS has no official exchange rate, generally accepts any posted rate used consistently, and publishes yearly average rates.
| Record | Conversion rule |
|---|---|
| Income and tax on the return | Rate when received, paid or accrued, used consistently |
| FBAR account values | Calendar year-end rate |
| Form 8938 asset values | Taxable year-end rate |
WHAT WE PREPARE
Where ExpatReturn.us fits in.
Plans for eligible 2025 US federal returns. UK pay and tax come from your own records: there is no P60 or P45 import service. Form 8833 is prepared only from a treaty position you supply.
Premier
$149per federal returnUSD
- Everything in Standard
- One business each for you and your spouse
- Self-employment tax calculation
Investor
$199per federal returnUSD
- Everything in Premier
- Investment sales, with or without Form 1099-B
- Rental and royalty income, US or foreign
FIRST STEPS
Four things to do first.
Suggested, not a legal checklist.
- 1
Reconcile your pay
Match January to December 2025 pay with the relevant UK summaries.
- 2
Make tax traceable
Keep tax amounts, periods, payment dates and currency conversions traceable.
- 3
List what you hold
Inventory foreign accounts with your ownership or signing authority, plus ISA holdings, pension plans and entity interests, for separate checks.
- 4
Check the dates
Filing, payment and account-report dates are in the deadline guide. See also other country guides.
I pay tax to HMRC and get no US tax form. Do I still need to file?
Paying HMRC, or receiving no US tax form, does not by itself settle the US filing question. US citizens and resident aliens generally report worldwide income, including UK earnings, and your US income, filing status and age drive whether you must file. Income excluded as foreign earned income still counts toward the filing threshold.
Can I just use my P60 for the US return?
A P60 summarises salary tax for a UK tax year that runs from 6 April to 5 April, so its annual figures do not isolate the US calendar year. Start with dated pay records and reconcile them against your UK summaries.
My ISA is tax free in the UK. Is it tax free on my US return?
GOV.UK says you do not pay UK tax on interest on cash in an ISA or on income or capital gains from investments in an ISA. That UK treatment alone does not establish the US result: US worldwide-income and reporting rules still apply. A stocks and shares ISA can hold investment funds, and the ISA label does not itself settle whether a fund is a PFIC.
Does the US-UK treaty decide how my UK pension is taxed?
The IRS publishes the US-UK treaty documents. Income treatment, other reporting and any treaty position for a UK pension need case-specific review, and this guide does not declare any UK pension taxable or exempt. Foreign pension interests can be reportable on Form 8938 when its requirements are met. The interview tests an employer's payment this year into a UK workplace pension scheme under treaty Article 18(5): it stays out of US income only for a US citizen living in the UK whose UK employer paid it for work done in the UK, within the UK relief and the US limit (section 415(c), or the section 415(b) test for a scheme that promises a set pension). A missing answer is asked for; every other case, including pay left out with the foreign earned income exclusion, is refused by name.
Which exchange rate should I use for pounds?
Amounts on the US return must be in US dollars. IRS guidance generally uses the rate prevailing when an item is received, paid or accrued. The IRS has no official exchange rate, generally accepts any posted rate used consistently, and publishes yearly average rates. FBAR and Form 8938 have their own valuation and conversion rules.
Do you prepare UK returns or give UK advice?
No. We do not prepare UK tax returns, and the service does not include accountant review, personal tax advice, or a UK pension or treaty determination. This guide also does not decide whether you must file UK Self Assessment.
Official sources (19)
Official sources
- GOV.UK: P60 (opens in a new tab)
- GOV.UK: P45 (opens in a new tab)
- GOV.UK: Self Assessment tax returns (opens in a new tab)
- GOV.UK: Keeping your pay and tax records (opens in a new tab)
- GOV.UK: How ISAs work (opens in a new tab)
- IRS: US citizens and resident aliens abroad (opens in a new tab)
- IRS: US citizens and residents abroad, filing requirements (opens in a new tab)
- IRS: Tax years (opens in a new tab)
- IRS: Foreign currency and currency exchange rates (opens in a new tab)
- IRS: Yearly average currency exchange rates (opens in a new tab)
- IRS: Foreign earned income exclusion (opens in a new tab)
- IRS: Foreign tax credit (opens in a new tab)
- IRS: Instructions for Form 1116 (2025) (opens in a new tab)
- FinCEN: Report Foreign Bank and Financial Accounts (opens in a new tab)
- IRS: Comparison of Form 8938 and FBAR requirements (opens in a new tab)
- IRS: Basic questions and answers on Form 8938 (opens in a new tab)
- IRS: About Form 8621 (opens in a new tab)
- IRS: About Form 5471 (opens in a new tab)
- IRS: United Kingdom tax treaty documents (opens in a new tab)
Last reviewed 22 October 2026
GET READY
Gather your UK records in one place.
The documents checklist lists what to collect for a 2025 US federal return, from payslips to account statements.
Open the checklist