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How much is the non-resident personal allowance?

  • 2 min read
  • Last updated 7 Oct 2022

If you’re a non-resident wondering how much personal allowance you are entitled to, listen up because this guide is for you! 

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 you know what a non-resident is, it’ll probably help to understand what a personal allowance is. 

A personal allowance is the amount you can earn without having to pay income tax. In the UK, you will automatically qualify if:

  • You hold a British passport
  • You’re a citizen of a European Economic Area (EEA) country
  • You’ve worked for the government during the tax year

The personal allowance is currently £12,570 per year.

And do non-residents get a personal allowance?

If you’re a non-resident, you’ll also get a personal allowance of £12,570 as long as you fall into one of these categories:

  • You’re a national of the EEA state
  • You’re a resident of the Isle of Man or 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 entitles 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! 🎉 

⚠️ Bear in mind, your personal allowance won’t be automatic like many UK residents. HMRC has specific requirements for how non-residents can claim the personal allowance:

  • You’ll have to claim the personal allowance at the end of each tax year
  • This is done by sending a formR43 to HMRC

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 are leaving the UK to live abroad permanently or going to work full-time for at least one full tax year, this may affect your residency status, so you will have to let HMRC know.

🚫 Providing false information about your residency is never a good idea and can be met with 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 accounts are more than happy to provide all the help you need! Book a consultation here.

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