As a US expat moving to the UK from the USA for a work assignment, navigating the complex world of immigration and international taxation can be daunting.
This is particularly true for organisations with staff in charge of coordinating international assignments who, despite having little to no prior experience, have been tasked with “making it happen fast” because of business needs.
Both employees and employers need to be aware of various immigration and tax implications to ensure compliance and optimize their financial positions.
This article will explore key immigration and tax considerations for US employees of moving to the UK from the USA on a work assignment, highlight the main responsibilities for employers and share some practical tips.
Let us start by discussing the immigration requirements for US citizens moving to the UK from the USA.
This is an important aspect that both employees and employers need to consider alongside the tax implications.
Immigration requirements for US Citizens moving to the UK from the USA
Various Visa types (also known as work permits) are available for US citizens moving to the UK from the USA.
1. Visa Types
The most common visa for US citizens on work assignments in the UK for more than 6 months is the Skilled Worker visa (formerly Tier 2).
However, depending on whether or not the US employer already has an entity (subsidiary or branch) in the UK, other visa routes may be available such as:
– UK Expansion Worker visa (Global Business Mobility): allows to come to the UK to set up a branch of an overseas business that has not started trading in the UK yet
– Senior or Specialist Worker visa (Global Business Mobility): for senior or specialist employees being transferred to a UK branch of their organization
– Government Authorised Exchange visa (Temporary Work): for shorter assignments or internships
2. Skilled Worker Visa Requirements
For most US individuals moving to the UK from the USA for work, a Skilled Worker visa will be needed unless they are being seconded to their US employer’s UK branch in which case the Senior or Specialist Worker visa will likely be the route to take.
Key requirements for the Skilled Worker Visa (though these are similar for the Senior or Specialist Worker visa) include:
a) Job offer from a UK employer with a valid Sponsor License
If the US employer does not have a UK Sponsor License yet, it will need to first obtain one before they can sponsor work permits in the UK.
A Sponsor License is needed regardless of whether an employer wants to hire in the UK foreign employees from outside its organization on a permanent basis or move to the UK from the USA employees within the current group structure on a 1-2 years assignment.
b) Skill level: the job must typically be at RQF level 3 or above (equivalent to A-level)
c) Salary threshold: must meet both the general salary threshold and the “going rate” for the specific occupation
d) English language proficiency: Proof of English language skills at level B1 or higher (though this would not typically be required for US citizens)
e) Maintenance funds: Proof of sufficient funds to support oneself (unless the employer certifies maintenance)
A Skilled Worker visa can be issued for up to five years and provides an access route to UK Indefinite Leave to Remain / British Citizenship.
This is a key difference with the Senior or Specialist Worker visa which, on the other hand, does not provide a path for individuals moving to the UK from the USA to obtain UK Indefinite Leave to Remain / British Citizenship after 5 years.
3. Employer Sponsorship
As explained earlier, for most work visas, the UK employer must hold a valid Sponsor License which, once obtained, lasts for an initial period of 4 years but can be renewed provided the eligibility requirements continue to be met. This involves:
a) Applying for a Sponsor License from the UK Home Office
b) Assigning a Certificate of Sponsorship (CoS) to the employee
c) Maintaining compliance with sponsor duties, including record-keeping and reporting
Two of the biggest hurdles for US employers to overcome in obtaining a Sponsor License are typically:
1. Lack of a UK bank account: a must have requirement if the UK entity applying for the Sponsor License has been trading in the UK for less than 18 months.
Furthermore, the bank account, in order to be compliant with the requirements of the UK Visa & Immigration authorities, has to be with a financial institution supervised by both the FCA and the PRA
2. Inability to find an Authorised Officer (AO): who must be a paid member of staff or engaged as an Office Holder of the UK entity seeking to obtain the Sponsor License and be based in the UK (though not necessarily a UK citizen).
4. Healthcare Surcharge
Most visa applicants must pay the Immigration Health Surcharge, which gives access to the UK’s free National Health Service (NHS).
5. Dependents
Family members (spouse/partner and children under 18) can usually accompany the main visa holder. They’ll need to apply for dependent visas.
6. Time Frames
Visa processing typically can takes 8-12 weeks (from submission) for a Sponsor License application.
An additional 3-8 weeks are then required to obtain a work permit (i.e. Skilled Worker visa or Senior or Specialist Worker visa) for an individual.
The two processes cannot run in parallel.
Priority and super-priority services are available for faster processing (at additional cost).
7. Right to Work Checks
Employers must conduct right to work checks before employment begins to ensure the employee has the correct immigration status.
8. Short-term Assignments
For individuals moving from to the UK from the USA on assignments under 6 months, US citizens might be able to use the Temporary Worker – Government Authorized Exchange visa or, in some cases, work as a business visitor without a work visa (with only a number or permitted activities allowed).
9. Brexit Impact
While Brexit has had a significant impact on EU citizens working across border, it has had less impact on the process for US citizens moving to the UK from the USA.
However, the overall system has been overhauled, replacing the old Tier system with the current points-based system.
10. Compliance and Reporting
Both employers and employees need to stay compliant with immigration laws:
a) Employers must keep records and report certain changes to the Home Office
b) Employees must adhere to the conditions of their visa and report any significant changes in circumstances
11. Planning Considerations
US employers planning a move to the UK from the USA one of more of their employees, should consider:
a) Starting the process early: as explained above, Visa applications can take time, especially if a sponsor license is needed
b) Budgeting for costs: as visa fees, healthcare surcharge, and potential legal fees can be significant
c) Coordinating with tax planning: Ensure immigration strategy aligns with tax considerations (see further below)
In conclusion, when moving to the UK from the USA, immigration aspects require careful planning and often professional assistance.
US employers should work closely with their HR and Global Mobility departments and possibly with external providers to ensure all requirements are met.
Employees should also be proactive in understanding their visa conditions and responsibilities whilst encouraging their US expat employees to do the same.
Tax implications in connection with moving to the UK from the USA
Having looked at the Immigration considerations when moving to the UK from the USA, let us now look at the tax implications.
1. US Tax Obligations for Expats
Despite living and working abroad, US citizens remain subject to US tax laws due to the country’s citizenship-based taxation system. Here are some crucial points to remember:
a) Filing requirements: US expats must continue to file annual US tax returns, reporting their worldwide income.
b) Foreign Earned Income Exclusion (FEIE): for 2025, expats can exclude up to $130,000 of foreign earned income from US taxation, subject to certain conditions.
c) Foreign Tax Credit (FTC): this credit helps avoid double taxation by allowing expats to offset US taxes with UK taxes paid.
d) Foreign Bank Account Report (FBAR): US persons with foreign financial accounts exceeding $10,000 in aggregate must file FinCEN Form 114
2. UK Tax Considerations
When moving to the UK from the USA, US expats become subject to UK tax laws.
Typically, this happens, when stays in the UK exceeds in the aggregate 183 days in any 12-month rolling period.
However, if other conditions are satisfied, UK taxation and payroll may become relevant for short-term business visitors too.
Key points include:
a) UK tax residency: determined by the Statutory Residence Test, which considers factors like days spent in the UK and ties to the country.
b) Income tax: UK residents are taxed on worldwide income, with rates ranging from 20% to 45% for the 2025/2026 tax year.
c) National Insurance Contributions (NICs): similar to US Social Security Contributions, NICs are mandatory for most workers in the UK.
However, US expat employees remaining on the US payroll for the duration of their assignment when moving to the UK from the USA will likely be able to claim an exemption from NICs by applying for a Certificate of Coverage to the US Social Security Administration (SSA).
d) Double Taxation Treaty: the US-UK tax treaty helps prevent double taxation and determines which country has primary taxing rights on various types of income.
3. Employer Responsibilities
Employers sending staff on UK assignments should consider:
a) Payroll and withholding: determining whether to:
– maintain the employee on US payroll
– remove the employee from the US payroll and transfer them to a UK payroll
– or operate a UK shadow payroll for the US expat moving to the UK from the USA.
b) Social security agreements: the US-UK Totalization Agreement may allow US employees moving to the UK from the USA to remain in the US Social Security system by obtaining a Certificate of Coverage as explained in the previous section above.
c) Tax equalization policies: many employers, when sending their employees to the UK from the USA, structure the move to ensure employees are neither better nor worse off tax-wise due to the assignment.
d) Reporting requirements: Employers and employees may need to file information returns with both US and UK tax authorities.
4. Planning Opportunities and Pitfalls
a) Timing of move: the date of arrival in the UK can significantly impact tax residency status and liability for the first tax year and in the tax year of departure from the UK.
This is even more so when moving to the UK from the USA, as the US fiscal year follows the calendar year whereas the UK fiscal year runs from 6 April to 5 April.
b) Housing arrangements: the tax treatment of employer-provided housing or housing allowances differs between the US and UK.US expats assigned to the UK for under 2 years may benefit from certain exemptions from taxation under Detached Duty Relief.
Furthermore, some relocation expenditures up to GBP 8,000 may also be exempt from UK taxation.
c) Pension contributions: understanding the tax implications of continuing US 401(k) contributions or participating in UK pension schemes.Typically, US expats moving to the UK from the USA and remaining on their US payroll, can be exempted from / opt-out of participating in the UK employer-provided private pension scheme.
d) Stock options and equity compensation: these can create complex tax situations spanning both countries even after the US employee has moved back to the USA from the UK.The help of a tax advisor / CPA is usually required to correctly apportion and tax stock options and other equity compensations (i.e. RSUs) in each country.
5. Compliance and Reporting
Staying compliant with both US and UK tax laws is crucial:
a) US expats must file Form 2555 (Foreign Earned Income) or Form 1116 (Foreign Tax Credit) with their US tax returns and ought to also claim Foreign Tax Credits for any taxes paid twice on the same income both in the US and in the UK.
b) UK tax returns (Self Assessment) may likely be required, especially for higher earners or those with complex tax situations.
c) US expats moving to the UK from the USA should also be aware of FATCA (Foreign Account Tax Compliance Act) reporting requirements for certain foreign financial assets.
6. Exit Planning
When the UK assignment ends, consider:
a) UK tax clearance: obtaining a P85 form to potentially reclaim overpaid taxes.
b) Capital gains implications: understanding the tax treatment of any UK investments or property upon departure.
c) Pension transfers: exploring options for UK pension funds accumulated during the assignment.
Conclusions on moving to the UK from the USA
Navigating the tax implications of a US-UK expat assignment (or between any 2 locations for that matter – see for example things to consider when moving from the US to Japan) requires careful planning and ongoing attention to compliance requirements in both countries.
Both employees and employers should seek professional advice when moving from to the UK from the USA to ensure they understand and meet their obligations while optimizing their tax positions.
By addressing these considerations and following these tips proactively, US expats and their employers can focus on making the most of their UK assignment and expanding the business overseas.
FAQ when relocating from the USA to UK
Can a US citizen move to the UK? / Can you move to the UK as a US citizen?
Yes. US citizens can move to the UK, but they need the right visa to live and work there.
For work assignments lasting more than 6 months, the most common route is the Skilled Worker visa or, for intra-company transfers, the Senior or Specialist Worker visa.
You cannot simply relocate and work on a tourist entry.
See the UK Government’s visa overview for a full list of work visa routes.
How do I move from the USA to the UK permanently?
Moving to the UK from the USA permanently typically involves:
- securing the right work or family visa,
- living in the UK for at least five continuous years, and
- applying for Indefinite Leave to Remain (ILR) — the UK’s equivalent of permanent residency.
After ILR, British citizenship may be possible.
The Skilled Worker visa is the most common route for those relocating for work, as — unlike the Senior or Specialist Worker visa — it does provide a path to ILR. Full details are on the UKVI website.
What visa do I need to move from the USA to the UK for work?
The right visa depends on your situation:
- Skilled Worker visa — for most employed roles with a UK-licensed sponsor
- Senior or Specialist Worker visa — for intra-company transfers within a multinational
- UK Expansion Worker visa — if you are setting up a new UK branch of a US company
- Self-employment / freelance — the Innovator Founder or Global Talent visas may apply, but options are limited for straightforward self-employed work
Your UK employer must hold a valid Sponsor Licence before they can sponsor your visa application.
How long does it take to move from the USA to the UK?
Realistically, allow 4–6 months minimum from starting the process to arriving in the UK. The main stages are:
- Sponsor Licence application: 8–12 weeks (if your employer doesn’t already have one)
- Work permit / visa application: 3–8 weeks after the licence is granted
- These two processes cannot run in parallel
Priority and super-priority visa services can shorten processing times at additional cost.
Starting early and keeping a relocation checklist is strongly advised — including tax planning, healthcare registration, and banking.
What are the costs of moving from the USA to the UK?
Costs vary widely but key items include:
- Skilled Worker visa fee: currently £479–£1,284 depending on length
- Immigration Health Surcharge: £1,035 per year per person (as of 2024)
- Sponsor Licence fee (if employer needs one): £536–£1,476
- Shipping/removals: typically £2,000–£8,000 for a full household shipment
- Legal/professional fees: variable
Employers on assignment programmes often cover visa and relocation costs.
Check the UKVI fee schedule for current official fees.
What are the UK tax implications for US expats moving to the UK?
UK tax residency is determined primarily by the Statutory Residence Test (SRT).
Once UK tax resident, you are generally liable to UK income tax on your worldwide income.
Key considerations include:
- The UK–US Tax Treaty can help avoid double taxation
- The Remittance Basis may be available for non-domiciled individuals, though recent FIG regime rule changes have significantly curtailed its use
- Social security / National Insurance: a Totalization Agreement between the US and UK determines where contributions are paid
Professional advice from a specialist in US–UK cross-border taxation is strongly recommended before relocating.
Do US citizens still have to file US taxes after moving to the UK?
Yes. The United States taxes its citizens on worldwide income regardless of where they live.
Moving to the UK does not end your US tax filing obligations.
You will generally still need to file a US federal tax return (Form 1040) each year.
However, reliefs such as the Foreign Earned Income Exclusion (FEIE), Foreign Tax Credits, and the US–UK Tax Treaty can significantly reduce or eliminate double taxation.
The IRS international taxpayer page is a useful starting point.
What is the best way to transfer money from the USA to the UK?
International bank transfers from the USA to the UK are straightforward. Options include:
- Wire transfers via your US bank (typically higher fees and less favourable exchange rates)
- Specialist FX providers such as Wise, OFX, or Moneycorp (generally better rates and lower fees for large transfers)
- Multi-currency accounts (e.g. Wise or Revolut) for ongoing currency management
For large transfers associated with a relocation — particularly pension lump sums or property proceeds — the tax treatment in both countries should be considered before moving funds.
Exchange rate timing can also be significant.
What should US expats know about UK healthcare when relocating from the USA?
Most visa applicants pay the Immigration Health Surcharge (IHS) upfront as part of their visa application.
This grants access to the National Health Service (NHS) — the UK’s publicly funded healthcare system — on broadly the same terms as UK citizens, including GP visits, hospital treatment, and prescriptions (at a standard flat fee).
Private health insurance is also widely used by expats, particularly for faster access to specialists.
Can family members join a US expat moving to the UK?
Yes. Spouses or civil partners, unmarried partners (if you’ve cohabited for at least 2 years), and children under 18 can generally apply for dependent visas to accompany the main visa holder to the UK.
Dependants are typically permitted to work in the UK without restriction.
They will also need to pay the Immigration Health Surcharge.
Each dependent’s visa application is separate and incurs its own fees.
What is the impact of Brexit on US citizens moving to the UK?
Brexit had a significant impact on EU citizens working in the UK, but the effect on US citizens was more limited.
The UK’s points-based immigration system now applies consistently to all non-UK nationals (including both EU and non-EU citizens), replacing the old Tier system.
In practice, the process for US citizens moving to the UK has not fundamentally changed, though employers now need to sponsor all non-UK workers — including EU nationals — through the same Sponsor Licence framework.
What are the pros and cons of moving to the UK from the USA?
This is ultimately a personal decision, but common considerations include:
Pros: Access to the NHS, generally lower healthcare costs, strong employment rights, proximity to Europe, cultural familiarity with the English-speaking world, and for assignment employees, potential tax planning opportunities.
Cons: Higher income tax rates than most US states, the cost and complexity of visa and compliance requirements, ongoing US tax filing obligations (including FBAR and FATCA reporting), and the adjustment to a different cost-of-living structure (particularly London).
For a work assignment specifically, the key is ensuring both immigration and tax are planned together — the two are closely linked and getting either wrong can be costly.
