How to pay UK taxes when living abroad

We've updated this guide on 2nd August 2019

The basic rule: when you live abroad, you still have to pay tax on any income that you earn from the UK.

Do I pay taxes in the UK if I live abroad?

Yes.

You will pay taxes on:

Wages/salary
Pension
Rental income (including Airbnb earnings)
When you sell residential property in UK
Savings interest and dividends.

How do I avoid 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 the UK you can avoid this by claiming a tax relief in the UK — so you pay taxes only once.

What if a UK company employs me but I am resident elsewhere?

If a UK company employs you, but you live abroad (for example, a secondment), your employer can set you up as a non-resident employee:

you only have to pay the UK income tax on the fraction of the year you spent working in the UK
the remainder of your income is taxed in your home country.

Make sure to check with your employer.

How do I report and file my income from abroad?

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

Your taxes have to be filed either by:

Using HMRC certified online software
Filling out paper forms and submitting them by post
Using a qualified tax accountant or an online tax service like TaxScouts.

What if I live in the UK and have foreign income?

In this case, you might want to read our guide to paying tax on foreign income instead.

More guides & useful information

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You can talk to one of our tax assistants at any time during the process when you have any questions.

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We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.

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Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.

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