Video: 5 Common Mistakes Brits Make When Living in USA

Video: 5 Common Mistakes Brits Make When Living in USA

by Thomas Quinn on Jul 16, 2020

Financial Planning

We speak to Brits living across the US each day at Taylor & Taylor USA. Here Thomas lists the 5 mistakes we hear most. If you live UK and now reside in the US, there are a number of nuances and specific challenges you face in light of having pensions, property, passports from two countries. Unfortunately, you're not given a guide at the border as to what to look out for, but these are the most common mistakes we hear and our thoughts on these.

Transcript

00:00:  We speak to Brits, living in the USA each day at Taylor & Taylor, here are the five common mistakes we hear most. So number one is the windfall elimination provision. Now this is a reduction in your social security pension, because you're entitled to receive a UK state pension people. Don't find this out until they get to social security pension age. They find out the hard way, they're going to suffer a reduction in retirement and that pension benefits. So what you can do is plan ahead, understand this now and factor into your plans.

00:35:   Number two is reporting of UK pension assets. So speak to your CPA, make sure they're fully aware of your pension assets you have in the UK, so that they're accurately being reported each year. So not just telling them when you're entitled to receive the money, make them aware today so they're being accurately reported. Number three is topping up of a UK state pension. So this is quite easy. It's straight forward to do. You can do it online and you can add to this income stream for relatively low cost. Number four is neglecting assets held overseas, typically UK pensions. So in advance of retirement, well before 65 that's often too late. Get a grip on what you've got in the UK, ensure they're structured to your goals and what you want to achieve before it's too late.

01:29:   So number five is the NT tax code. So not telling the HMRC that you're no longer a UK taxpayer and being taxed at your emergency rate of 45% on withdrawals from UK pensions. So you can complete the HMRC forms which ensures you receive an NT, which is a no tax tax code, submit this to your trustees, and that can try and help you avoid paying this emergency rate of 45% on those withdrawals. Thanks for listening. I hope some of these have helped and do reach out if you've encountered some of these issues or some of these are new to you. We'd love to hear from you and we're more than happy to help.

 

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