Working Remotely in the UK as a US Citizen

Working Remotely in the UK as a US Citizen

Working from abroad has become more than just a trend; it’s a lifestyle choice for many Americans. And the UK, with its familiar language, cultural appeal, and international cities, draws plenty of attention from remote workers.

If you're a US citizen considering a move across the Atlantic to work remotely, there’s a lot to like. But there are also some significant legal and tax obligations to keep in mind before you commit to working from your favorite café in London or a cozy cottage in the Cotswolds.

Can You Legally Work Remotely from the UK?

Here’s the deal: you can’t just show up in the UK and start working remotely for your US employer, even if you’re being paid from the States.

The UK doesn’t currently offer a visa specifically for digital nomads. That means you’ll need to explore other visa options that align with your circumstances.

Some possibilities include:

• Skilled Worker visa - typically for those with a job offer from a UK-based employer, which doesn’t apply to most remote roles for US companies.
• Spouse or Partner visa - available if you're married to or in a civil partnership with a UK citizen or permanent resident.
• Youth Mobility Scheme visa - for citizens of specific countries aged 18–30 (not open to Americans, but available to dual citizens of countries like Australia or New Zealand).
• Standard Visitor visa - this allows you to visit the UK for up to six months, but working even remotely is not officially permitted under this visa.

Heads up: Working remotely on the wrong visa might not seem like a big deal, but it can create problems with UK immigration. It’s worth checking with an immigration advisor before you leap.

Taxes in the UK vs in the US

Once you’ve sorted out how to live and work legally in the UK, the next big topic is taxes. You’ll likely have to deal with both HMRC (the UK’s tax authority) and the IRS. Here’s a comparison of taxes in the UK vs in the US.

US Tax Responsibilities

Even if you’ve been away from the States for years, the IRS still expects you to file a US tax return if you’re a citizen. Your location doesn’t change that. So while you're working remotely in the UK, you'll still need to:

• Submit Form 1040 every year
• Report foreign bank accounts exceeding $10,000 via FBAR (FinCEN 114)
• Disclose foreign assets or trusts on Form 8938, if required

To avoid being taxed twice on the same income, you can use:

• Foreign Earned Income Exclusion (FEIE) - lets you exclude up to $120,000 of foreign-earned income in 2025 (subject to meeting physical presence or residency tests)
• Foreign Tax Credit (FTC) - allows you to offset your US tax bill by the amount you’ve already paid to the UK government.

You can’t apply both FEIE and FTC to the same income. Choosing the right one can save you money, so it’s a good idea to talk to a tax pro who handles cross-border returns.

UK Tax Rules

Once you’ve been in the UK for more than 183 days during a tax year (April 6 to April 5), you’re usually considered a UK tax resident. That means you’re taxed on your worldwide income, including anything you earn from your remote US job.

If you're paid directly by your US company, you'll probably need to register with HMRC for Self Assessment, especially if you're not taxed at the source.

Getting Paid While Abroad

If your US employer continues to process payroll as if you were in the States, you may encounter issues. In some cases, the company may be considered to have a “tax presence” in the UK, which can get messy.

To avoid complications, consider:

• Switching to contractor or freelancer status
• Using an umbrella company or global payroll provider
• Opening a UK bank account and managing currency transfers with low-fee services to get better exchange rates

Tips for Smoother Remote Work in the UK

Here’s how to make life easier once you’ve settled in:

• Use a VPN: Some US companies require this for security or regional access to tools
• Track your days: You’ll need this to prove UK residency and qualify for IRS exclusions
• Register with HMRC: If you're self-employed or freelancing, it's required
• Get professional tax help: Managing dual tax obligations isn’t simple, and mistakes can cost you

Final Thoughts

Working remotely from the UK as an American is entirely possible and often rewarding. The shared language, strong infrastructure, and cultural familiarity make the UK one of the more comfortable places for US expats to live and work.

But it’s not something to dive into without a plan. The combination of visa requirements and double-taxation rules means it’s worth doing your homework (and getting expert advice) before making the move.

Thinking about making the switch?

Start by reviewing your visa options, then speak with a cross-border tax specialist to build a plan that keeps you legal and stress-free on both sides of the Atlantic.