What happens if I put my money in a UK account?

Question

I'm a US citizen and want to do this. I have a regular job I pay taxes on and make extra money as a sports bettor (punter in the UK). I don't want the US government to take that money. In the UK punters don't pay taxes. I just wanna know what can I do to get my gambling money in a UK account.

Answer 1

Being a US citizen you are taxed on worldwide income no matter where you earn it. I'm not going to tell you how to avoid taxes, that would be tax fraud.

Answer 2

You are responsible for and liable to pay tax on all income, regardless of where the income is earned, in the country where you are a registered tax payer. That is the general law applicable in all EU countries and the USA.

What you are trying to do is cheat your IRS service, thereby cheat your own country and fellow citizens and makes you no better then a common thief.

And that is the same as being real cheap.

EDIT:- People are so out of date. Forget the Swiss thing. No more number only accounts. The Swiss were forced to sign the anti tax haven agreement with the EU and USA fo help fight terrorist and crime dollars. Even the Swiss notify the authorities in the account holders country of residence about the account and of any interest earned. It's all taxed. Even if you open an account in someone elses name they will have to pay tax, so they will want it back from you.

The very best thing to do is find a way to hide it in your own country. Also keep in mind that gambling on the internet is illegal if you are a citizen of the USA. You have even more big brother then anybody else in the world. So much for the land of the free, what a laugh!!!

Answer 3

Okay here is the tax situation. As a US citizen the US taxes you on your worldwide income. As the income is earned in the UK, the UK also taxes you. You will get tax relief known as double taxation relief (DTR) as the UK & USA have a tax treaty, basically an agreement that a citizen of either country should not have to pay the tax twice on the same income. The relief will be at the lower rate. For example say you earned interest of £1,000 and the tax rate in the UK is 20%, you will pay UK tax of £200. Assuming an exchange rate of 2 (just for simplicity) this equates to $2,000 interest & $400 dollars of tax paid overseas. If in the USA the tax is 25%, then you will pay $500 tax in the USA but you will get DTR and can deduct the lower tax suffered, in this case the UK tax of $400, so you will end up paying $500.

Now lets do the same example but assuming the tax rates are the other way round, UK 25% and USA 20%. In the UK you will pay £250 or $500 and on the UK tax return you would get DTR for $400 tax paid. You would also in the US pay $400 so you end up paying $500 in total, therefore no different.

Answer 4

As a U.S. citizen you must report on your 1040 what you earn in the UK. If you pay taxes then you can claim credit for taxes paid in the UK; depends upon tax teaty.

You can put whatever you can in a UK account, but you must report your income.

One more requirement, if any time in a year you have more than $10,000 in foreign countries you must file Form TD F 90-22.1. File with the Department of Treasury by June 30, 2008. If you are required to file and do not file it, the penalty may be up to $10,000 (or more in some cases). The Form TD F 90-22.1 can be download from
www.irs.gov

Answer 5

There is a tax treaty between the USA and the UK where they share information including your bank account info. When you open an UK bank account, they will request for your ID which is a US passport. After that, IRS will know you have a bank account in the UK. US government won't take that money but will tax you on your sport winnings. Don't put it in a UK bank account under your name.

Answer 6

As a US citizen you are legally required to pay taxes on all of your income - having it deposited into an account in the UK would not change this.

If you are asking if doing this would make it easier for you to illegally evade taxes, it might, for awhile, or it might not.

Answer 7

I beg to differ mate but yes there is Tax on gambling in the UK

Answer 8

But doesn't the US tax you on your world wide income - and that would include the UK too

Answer 9

If you annoy the CIA you are going to find yourself wearing an orange jumpsuit in a country you have never heard of. If you dick around with the IRS you will WISH you were wearing an orange jumpsuit in a country you have never heard of!!

Answer 10

You get taxed.

We get taxed for every bloody thing.

Swiss account pal. It's the only way