Tax when working in two countries
Last Updated on 10 July 2026
For most people I meet on my finance for freelancers courses tax is fundamentally very simple. You live in the UK and you pay tax in the UK.
There is a small group who live in the UK and work in other countries as well. For most that’s simple too.
If you’re resident in the UK you pay tax on income wherever you earned it. (Just convert it back to sterling in your records!)
Then there are the Americans.
USA! USA!
If you’re an American citizen you have the unique privilege of paying tax in the USA, even if you don’t live there.
Other countries don’t do this. (Let’s not mention Eritrea.)
I’ve always known how headache-inducing this is for US citizens. I have some in my extended family.
They have to match up tax reporting in two countries with different taxes, different terminology and even different tax years.
This makes it very complicated and it can be very expensive because of all the accountancy advice you have to buy.
Quite how bonkers the whole thing can get was revealed to me in this great article by the tax specialist Dan Neidle:
https://taxpolicy.org.uk/2026/07/07/uk-citizenship-based-taxation/ > (opens in new window)
The thrust of this article is that it is not in the UK’s interested to introduce a tax system based on citizenship.
But along the way there’s some great background detail. If you’re a secret tax nerd you’ll love it.
Image credit: Peggy und Marco Lachmann-Anke from Pixabay
Are you an American citizen?
Firstly, sorry about the World Cup.
Secondly, if you are based in the UK and need help with tax stuff in two places at once, I was recommended the following from a former trainee:
I have no personal experience with them, of course. At your own risk etc etc…
“For accountant recommendations, I’ve worked with Lefevres (http://www.lefevres.com/) for several years now on my UK obligations, and they also liaise with my US accountant, and have prepared documents that I need to share between tax systems. On the US side, I work with Lighthouse Tax & Consulting (with http://www.lighthousetax.com/) based in Connecticut. Eileen Santos there has a robust understanding of US tax legislation and works specifically with Americans abroad. I’m very happy with both of them.”
NB: David Thomas Media Ltd is not responsible for the content of other sites nor any financial advice provided by them.
Posted on 07 July 2026
