Working in the US

Laura8192 Registered Posts: 95 ? ? ?
My brother is currently working in the US, he went over last month and is there for 7 or 8 months (not a full tax year but over a 5th April tax year end).

Does anyone know what happens about income tax, he has been told several different things, some saying US has low tax and he doesn't have to pay tax in UK, some saying when he returns to UK he will be liable to pay tax on all his income etc?

I tried looking on google but just came up with companies wanting to be paid to complete tax advise/returns. And HMRC website which I don't have the brain power to face tonight so hoping someone on here has some knowledge or experience.

Thank you for your help.


  • JodieR
    JodieR Registered Posts: 1,002
    As his absence from the UK doesn't span a complete tax year he will be treated as being resident in the UK for the entire time and therefore he will be taxed in the UK on his worldwide income. As he will probably also be taxed in the US on his US income he should be able to get relief for the tax already suffered so long as the UK and USA have a double taxation agreement (which I'm sure they will).

    I did hear that the residency rules were changing though so this may not be correct any more, you'll need to double-check!
  • Nie
    Nie Registered Posts: 12 Regular contributor ⭐ ? ⭐
    My only experience is as a tax payer, and luckily I've never worked in both countries in the same year. But a few points to note, the US tax year is different than the UK one, it runs Jan-Dec. In the US you're taxed by both the federal government and the state your working in. And it's your responsibility to file those two tax returns, they don't have anything like PAYE.
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