Case Study 5: US tax implications when setting up a business in the UK

Adviser name: Lucinda Bailey

After graduating from university in the US, Sandy, a US national, found an exciting job opportunity in London, UK.

The English capital city, with its rich history, its snaking River Thames, lifestyle, economy, and thirst for development, lured Sandy to cross over The Pond.

It was too good an opportunity to miss so she packed her things up and came to the UK to live and work.

Like many of her fellow Americans, it was Sandy’s intention to stay for a couple of years, gain the experience, and move back home.

But, romance blossomed when she met Alfie, a UK national. She extended her London stay and a few years later she and Alfie were wed, and they started a beautiful family together.

Sandy and Alfie had two children, both of whom were registered as US citizens at the US Embassy in London. To ensure all was right, Sandy obtained social security numbers for them and she includes them as dependents on her tax returns.

Ever thinking of new opportunities, Alfie, a serial entrepreneur, suggested that Sandy help him form a new company.

Sandy contacted Satis Tax, as she thought there might be some US tax implications.

And she was right. Sandy would have reporting requirements in respect of her ownership in the company. Satis Tax advised Sandy and Alfie on the US and UK tax implications in respect of her ownership in the new company to minimize her US and UK tax exposure and comply with her tax filing obligations in both jurisdictions.

It was great to be able to help Sandy and Alfie with our knowledge and expertise in these matters, ensuring that they can grow their business, enjoy their family, and not break any rules around tax in either the US or the UK

Do you know what tax reporting obligations you have? We can help you.

What our clients say

As an American residing in London, I have complex tax requirements having to file both in the USA along with the UK.

Satis Tax has not only undertaken this massive assignment with rigour, but more importantly, it has been the very personal engagement and insightful counselling that has shaped the relationship beyond the professional requirement. Their work undertaken has been flawless in its execution. Without hesitation I would recommend their services to all those that require a level of professionalism that goes beyond a remit.

Carol

London

Ross Badger, and now his team at Satis Tax, has been handling my US and UK tax affairs for almost 25 years. Aside from the high quality of the firm’s work and its tireless effort to ensure that tax planning in both jurisdictions is as efficient as permissible, what I have particularly liked is the unstinting personal service that Ross and his colleagues provide. But, perhaps, the best indication of my satisfaction with Satis’ work is the numerous clients I have referred to the firm all of whom have been equally happy with their experience.

Bob

London

Although tax time is no fun for most people Satis Tax makes it easy and painless. Their knowledge of both US and UK tax requirements along with their quick response to queries has enabled me to spend more time on other pressing issues.

Rita

Phoenix, AZ

One or more of the Satis Tax principals has been handling my personal taxes, both US and UK, for over 35 years. That fact speaks for itself. Several aspects of Satis' work impress me: 1) Thorough understanding of both the UK and USA tax systems; 2) Attention to detail; 3) A conservative approach combined with an appreciation that for the client "every dollar/pound matters" when it comes to limiting one's tax liabilities.

Mat

Montana

Having decided to emigrate to the U.S., I was completely unprepared for how complex the interaction between the UK and US tax systems would be. From initial tax planning advice prior to emigrating, several subsequent complex business transactions, to filing both our UK and US annual returns, I’ve always felt assured that Satis have a complete understanding of the complexities of the tax regulations. This has freed us from the worry of tax compliance in both countries. Over and above keeping us complaint, they have been an invaluable sounding board when we have found ourselves facing personal decisions that have had tax consequences through the years we have been living in the US.

Rob

Florida

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