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How to pay UK taxes when living abroad

We've updated this guide on 12th February 2021

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:

  1. Wages/salary
  2. Pension
  3. Rental income (including Airbnb earnings)
  4. When you sell residential property in UK
  5. 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.

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