Hello! Hoping this is the right place to put this.
I’m asking for a friend – he’s a US citizen living in the UK but working for a US company. (Visa is overseas business representative if that matters.) He filed his US taxes by the extended deadline of October 2022 and is meant to get the entire amount back due to the Foreign Earned Income Exclusion. However, it’s now February and he hasn’t gotten it back yet, and when he checked online there wasn’t a specific reason it was being held.
And now it’s time to pay UK taxes but he hasn’t gotten the money back from the US, so at the moment he has to pay out to both, which presents a bit of a cash flow problem for him. He tried calling HRMC to see if he could get an extension but couldn’t reach an actual person.
Wondering if anyone else has dealt with a similar situation, or with contacting the IRS to get a reason why a tax return hasn’t arrived after several months. He’s working for a US-based start up so there’s no one at the company who is familiar with UK tax law.
Beyond “pay double tax now and wait for the US to reimburse at an unknown later date,” there are two possible solutions that I can see but what I’m not sure how feasible either is:
1) Identify what is causing the hold up for the IRS in reimbursing the taxes, get that money back sooner, or
2) Delay taxes with HRMC so UK tax can be paid after the US return is received
Thanks!
Submitted February 18, 2023 at 07:20AM by chandelier-hats https://ift.tt/LW0Cgan
