Originally written by Partner Content on Small Business
Q: What’s worse than dealing with HMRC every year?
A: Dealing with HMRC and the IRS
Life as an expat is complicated, especially around the end of the tax year.
Having to fill in two annual tax returns should be unnecessary because after all, Her Majesty’s Revenue and Customs (HMRC) does talk to the US Internal Revenue Service (IRS). However logic plays no part in the demands that government departments place on citizens, so you just have to grin and bear it.
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The bad
All US citizens need to file an annual tax return (Form 1040) with the IRS, even if they calculate that no tax is owed.
You must also notify the US Treasury Department every year of any UK and other non-US bank accounts and their balances using Form FinCEN 114. Your Foreign Bank Declaration (FBAR) must include any pension accounts and bank accounts where you are an authorised signatory, including joint accounts.
Failure to file either of these documents on time can cost you thousands in late penalties.
You will also need to file numerous extra forms with your Form 1040 to avoid being hit by late