Tax on a US bank account?

[Sudden]

I'm thinking of opening a US bank account to make money transfer easier. I did open a UK USD account, but the company that would transfer money would still charge a fee for an international transfer (though no conversion fee) whereas transferring it to a local account wouldn't have any charges. I can then transfer it from that bank account to my UK bank account at no extra charges as well.

What I don't know is if by opening an account and having cash in there, I become subject to any US tax or have to file a return or anything like that? Has anyone on here done anything like this/know the answer? I did ask my bank but they said they can't advise.

I should ask a Tax accountant probably, but I don't have one, so turning to the GD collective wisdom! If anyone also has any suggestions for a personal tax accountant in London (not too expensive please Apart from some company shares in the US which I think are a bit tricky to handle, I have no other income other than salary, so it would be pretty straightforward I think!), then that is also welcome

 

[Basher]

Why not just open a Revolut account in the UK?

I get paid in USD from stock every few months, hold it in USD then transfer to GBP when the rate is favourable.

 

[Kemik]

Can you even open a US account without a US address?

 

[Sudden]

Thanks both. Revolut - Must admit I haven't properly looked into it, but wouldn't it still be considered a UK bank account (similar to my bank USD account), so international wire fees still apply?

Re. US address - yeah, that isn't an issue. Spoke to my bank about the process of opening an account already and this didn't come up as a problem (Just need to show proof of UK address).

 

[Basher]

Thanks both. Revolut - Must admit I haven't properly looked into it, but wouldn't it still be considered a UK bank account (similar to my bank USD account), so international wire fees still apply?

Re. US address - yeah, that isn't an issue. Spoke to my bank about the process of opening an account already and this didn't come up as a problem (Just need to show proof of UK address).

Yes - wire fees still apply but it'll be tiny (maybe $20?). Seems far easier and cheaper than opening a US account.

 

[peterwalkley]

I think you would need to complete a W8-BEN form so the IRS knows where to rock up with the rubber gloves and lube. Bank accounts are all subject to money laundering checks so the beneficial owner needs to be known.

How much money and how frequently are you talking about here ? Revoult option sounds far easier.

 

[Sudden]

Yes - wire fees still apply but it'll be tiny (maybe $20?). Seems far easier and cheaper than opening a US account.

Yeah, it isn't a lot, but apply each time and this seemed like a pretty simple way of getting around it - I just didn't know if there was something big (like tax) that I was missing as a result of doing this. There's no cost for me to open a US account and given it just means a couple of phone calls with my bank, not particularly difficult either.

The amount would vary, but I suspect a few hundred dollars at the lower end, and maybe a few thousand at the upper end. I'm guessing maybe 3 or 4 times a year. All guesswork though as haven't done it really yet so only exploring it now. will take a look at the W8 form - I think I might have to do it already because my shares are from a US company (and shares are also sold off periodically to cover tax liability arising from them), but not sure if it's W8-BEN or something else.