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So, I have been given a research grant from the US Government in order to work at a UK educational institution. Consequently, I am on a Tier II worker visa here in England, sponsored by the UK educational institution, but "self-employed" with the grant giving me a monthly stipend. I am paid into my US bank account with US Dollars directly from the US agency; however, I am not a Government employee. I have to take the money and transfer it into GBP and then take it from there.

Here's the question: Do I pay US or UK taxes?

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  • Are you a US Citizen? (The answer may mean "Both")
    – Gagravarr
    Oct 21, 2014 at 8:23
  • I am a US citizen. I know I will have to probably file both, but I am unclear on which income based scheme I will have to deal with. Oct 21, 2014 at 11:56
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    adding to @Gagravarr.. us citizens must file regardless of residency. but if you're outside of the us for 330 days in any one-year period, you get a huge exclusion. so you send in the paperwork but you probably owe very little to the united states government for the year (you also might have to re-file to get a partial refund for the share of the previous year if your one-year period spanned a year you already paid taxes for) Oct 21, 2014 at 11:57
  • Note also that any bank accounts you have in the UK will trigger US FBAR balance reporting obligations...
    – DJohnM
    Oct 21, 2014 at 18:39

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