How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 2989
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your UK Tax Question Here...
bigduckontax is online now
A new question is answered every 9 seconds

If my company transfers me to UK at my current salary (

Customer Question

If my company transfers me to UK at my current salary ( 145GBP)and pays for housing (2500GBP per month) and car allowance of (7k GBP per yr) what kind of tax will i have to pay in the US?
Submitted: 5 months ago.
Category: UK Tax
Customer: replied 5 months ago.
Please provide both UK and US tax liability. Salary 145kGBP per Yr, housing 2500 GBP per month; 7k GBP car allowance per yr.
Expert:  bigduckontax replied 5 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

If you spend more than 183 days in the UK in any one tax year [6 April to the following 5 April] you will be liable to UK taxation on your world wide income. At that level of income 175K, ignoring the car allowance, you will be in the 45% tax bracket have no personal allowance and a tax bill of some GBP 62.65 per annum.

This is essentially an UK taxation advice site ans I am unable to compute your US tax liability as the number of permitted deductions is too complex; furthermore there is the matter of State taxes to be considered.. However, the UK does have a Double taxation Treaty with the USA and, indeed, similar treaties with a number of individual States within the Union also under which the same income stream can only be taxed in one jurisdiction. This is achieved by means of tax credits, the tax paid in one country being allowed as a tax credit against the liability in the other.

That is about as far as I can go on this question. I do hope that I have been of some help.

Related UK Tax Questions