How much is the non-resident personal allowance?

If you’re a non-resident curious about your tax-free earnings, listen up because this guide is for you!

We’re going to walk you through everything you need to know about the non-resident personal allowance, who qualifies, how to claim it, and key rules to stay compliant.

Whether you’re after clarity on the personal allowance for non-UK residents or just making sure you don’t miss out, read on.

Am I a non-resident? 

Firstly, let’s look at what makes someone a resident or a non-resident. 

To be considered a UK resident, you’ll usually have to fall into one of these categories:

• You spent 183 days or more in the year
• Your UK home is your only home, and you spent 91 consecutive days there in a tax year
• You work full-time in the UK without significant breaks
• You meet the ‘sufficient ties’ test

On the other hand, you’re a non-UK resident if you:

• Spent fewer than 46 days in the UK (or 46 if you haven’t been classed as a UK resident for 3 years)
• Work full-time abroad (35 hours a week)

If you want to learn more about this, we’ve got a detailed guide here!

So, what’s a personal allowance?

Now that you know what a non-resident is, it will probably help to understand what a personal allowance is. 

And do non-residents get a personal allowance?

The good news is yes, but not everyone qualifies automatically. The non-resident personal allowance is available if you fall into one of these categories:

• You’re a national of an EEA state
• You’re a resident of the Isle of Man or the Channel Islands
• You’ve been or are currently employed in the service of the Crown (a fancy term for UK armed forces, a civil servant or a diplomat)
• You previously lived in the UK but moved abroad for health reasons
• You belong to a missionary society 
• The terms of a relevant tax treaty entitle you to the personal allowance

I’m a non-resident who is entitled to a personal allowance – what next?

You meet one of the above criteria – congratulations! 🎉 

How does HMRC check residency? 

What information isn’t obtainable these days? HMRC has access to large volumes of information. 

The very sophisticated software used by HMRC can pull out all financial records. It probably wouldn’t be very difficult for HMRC to obtain other necessary information from sister government departments such as the Home Office, either.

If you’re planning to leave the UK permanently or work full-time abroad for at least a full tax year, make sure you notify HMRC, as this could affect your non-resident personal allowance entitlement.

Providing false information about your residency is never a good idea and can result in hefty penalties.

I’m a non-resident and need tax advice! 🫣

The tax implications of being a non-resident can be extremely confusing, we know! But don’t worry, our accredited accountants are ready to help you navigate your non-resident personal allowance claims and any other non-resident tax queries you might have. Book a consultation here.