How to pay UK taxes when living abroad
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?
You will pay taxes on:
- 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.