More Brits with questions! - IRS/Income Tax!

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Justin85

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Mar 12, 2013
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Hi All,

We are an (unmarried) British couple who intend to spend 10-12 months (commencing September 2013) travelling the states in a truck and fifth wheel. I am fairly happy with the visa issues and ins and outs of purchasing the truck and trailer, but am unsure on the issue of income tax.

Whilst we are travelling the states we will have income from rental properties in Britain. As we will be (hopefully) spending more than 180 days stateside, will will be liable to pay tax in the US and in the UK?

I have read that there is a tax treaty between the US and UK to avoid double paying, but how does this work in practice?

Many thanks,
Justin.
 
I don't believe you will pay income tax on your income in the U.K. as you are not U.S. Citizens.

HOWEVER, I would recommend consulting a tax attorney or accountant and not rely on advice from an effectively anonymous forum ;-)

And welcome!
 
Not too sure how they would even know you received income since nothing would be reported to the US IRS. So my vote would be don't worry about it.

I did have a friend who worked for a US Company and lived in the UK and he was double taxed...but different situation, since he was paid by the UK Office so they reported UK income and his subsidy from the US company reported his income to the IRS...took him a couple years t get it all resolved.

But pretty sure the US would not require you paying income tax, but of course you will be subject to various sales taxes on things you purchase.

Welcome to the US - you will enjoy your time here...

Jim

 
From someone who's dealt with the UK Inland Revenue and the IRS, sometimes at the same time, as both a UK and US citizen and other immigration statuses, for many years ....

The short answer is that there's no tax issue for you, as you will not be resident here, and you won't be earning any income here. You'll be UK citizens on vacation (holidays) here and, in fact, you wouldn't be allowed to work here with a B1/B2 visa. The long answer is contained in one or more prior topics. Or, if you want to get the latest info, you can browse and search the IRS web site, but be prepared to be confused.

One caveat - I'm neither a CPA nor a tax attorney, but have dealt with them and both UK and US based CPAs in addition to Inland Revenue in both countries on the "dual taxation" and related issues, which again won't apply to you. FWIW few CPAs in either country understand the issue you're asking about.

(CPA = US equivalent of a UK chartered accountant, or close enough).
 
Hi Justin we're Brits and planning exactly what your are. Hoping our rental properties will give us enough income and hoping to buy a truck and 5er. We wont be going for a couple of years yet but I'm really keen to find out how it all pans out for you re buying, insuring etc your vehicles. So any advise or info you can offer would be gratefully received. Good luck  :)
 
Thanks Tom ! You offer good advice from a British perspective I see. Thats very helpful, as is this site !
 
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