Aiming to depart the UK? If you are travelling one way and need to pay UK taxes, know everything about living abroad and UK tax, find out when and how to do so!
Of course, the first step is to inform HMRC that you will be permanently departing the UK. Depending on what is easiest for you, you can complete a P85 postal form or use the online form service.
If I live abroad, do I have to pay taxes in the UK?
The general rule is that even if you reside outside of the UK, you are still required to pay tax on any income you get from the country.
- Wages/salary (employment income) (employment income)
- Pension
- Rental revenue (including Airbnb earnings)
- Residential real estate sales in the UK
- dividends and savings interest from your bank account(s)
Unfortunately, you won't be able to get National Insurance reimbursement for prior tax years. However, anything you have paid will go toward the benefits system in the nation you are relocating to if there is a social security agreement in place between it and the UK.
How can I prevent paying two taxes?
You might wish to confirm if your home nation would tax you on your UK income before purchasing that one-way ticket because this is not unheard of.
By requesting tax relief in the UK, you can avoid double taxation if your country of residency and the UK have an agreement in place to prevent it. This allows you to pay taxes only once, which seems fair to us!
It's never too late to change the destination on that ticket! Check here to see which nations and the UK have this agreement!
What if I work for a UK company but live somewhere else?
Your employer may designate you as a non-resident employee for tax purposes if you work for a UK company but reside overseas (for instance, when on a secondment):
Only the portion of the year you worked in the UK will be subject to income tax.
The rest of your income is subject to tax in your country of residence.
Verify again with your employer, please!
How do I declare and file my foreign earnings?
You cannot immediately file your self-assessment tax return using HMRC's online services if you reside outside of the UK.
You must file your taxes either by:
Using online software that is HMRC-certified
completing paper forms and mailing them in
Using a certified tax professional or an online tax service like Accotax we don't want to sound favouritism, but we highly encourage this choice!
Do you need some guidance?
We have a dedicated team of charted accountants to guide you in any kind of tax or accounting related issues. Contact Us for instant help.
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