How to file income taxes when living abroad

When you live abroad you still have to pay income tax on any income that you earn from the UK.

European Economic Area (EEA) citizens (or those who work for UK government) can benefit from the income tax allowance. This means income up to £11,500 is tax free.

UK Income that is taxed

  1. Wages/Salary you earn
  2. Your pension
  3. Your rental income
  4. When you sell residential property in UK
  5. Savings Interest & Dividends

Avoiding double taxation

The country you live in may also tax you on your UK income.

If your country of residence has a double-taxation agreement with UK you can avoid this by claiming a tax relief in UK. Details for the agreements with each country may vary but in essence it means you'll pay taxes just once.

When you are employed by UK company but are resident elsewhere

If you are employed by a UK company but live abroad - your employer may set you up as a non-resident employee.

This means you only have to pay the UK income tax on the fraction of the year you spent working in UK, while the remainder of your income is taxed in your home country. Before filing your taxes make sure to ask your employer if they have done so.

How to report and file your income from abroad

You cannot directly use HMRC's online services to file your tax return.

Your taxes have to be reported and filed either by

  • Using HMRC certified online software
  • Using professional tax advisor or accountant
  • Filling out paper forms and submitting them by post

Of course, we at TaxScouts are happy to do this for you as well.

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