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If you live in the UK and have foreign income, you’ll usually have to pay UK tax on it.
You do this by filing a Self Assessment tax return – TaxScouts can help you do it 100% online.
The foreign income will be taxed the same way as any UK income. These are examples of the kinds of foreign income you’d have to pay tax on:
Like we mentioned, foreign income is the same way as income from the UK. The easiest way to figure out how much you need to pay is by using this handy Income Tax calculator.
When you’re self-employed, you have to pay your income tax and national insurance contributions yourself in your annual Self Assessment. Our calculator helps you quickly assess how much you owe.
However you may be eligible for a tax refund when:
In your case when you earn £50,000:
You pay no income tax on first £12,570 that you make
You pay £7,286 at basic income tax rate (20%) on the next £36,430
No contributions on the first £9,568 that you make
You pay £3,549 in contributions (at 9%) on the next £39,432 that you make
You pay £159 in NI Class 2 contributions
If you made profits of more than £12,300 from selling foreign investments or property, use our Capital Gains Tax calculator instead.
HMRC considers you a UK resident if you either:
If your status changes during the tax year you might be able to pay UK tax only on the money you made as a UK resident. For more information, you should contact HMRC directly.
You can be a UK resident while still having your permanent home abroad.
In any case, you still have to pay UK tax on any income and gains from the UK.
What does the remittance basis mean?
You have to pay UK tax on it – read our guide on how to pay UK taxes when living abroad.
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