Do you have to pay UK tax on salary earned abroad?
Discussion
Afternoon and long time poster but using a different profile for this query....
There is a possibility that I may end up working abroad on the following routine: 9 weeks on then 3 weeks off. In the 3 weeks off would return to the UK normally.
The question is would the salary be be liable to UK income tax if paid into a UK bank account? This is early days but this employment could start in as little as 3 weeks time.
I read that if you spend less than 91 days in the UK you do not have to pay the tax, is this correct?
By the way, am still paying tax, and will continue to pay tax, on my pension.
Cheers!
There is a possibility that I may end up working abroad on the following routine: 9 weeks on then 3 weeks off. In the 3 weeks off would return to the UK normally.
The question is would the salary be be liable to UK income tax if paid into a UK bank account? This is early days but this employment could start in as little as 3 weeks time.
I read that if you spend less than 91 days in the UK you do not have to pay the tax, is this correct?
By the way, am still paying tax, and will continue to pay tax, on my pension.
Cheers!
You are tax resident and it does not just depend on staying so many days .....such as also family in UK, home in UK etc
read the short and easy to understand guidance
https://www.gov.uk/tax-foreign-income/residence#:~...
read the short and easy to understand guidance
https://www.gov.uk/tax-foreign-income/residence#:~...
Edited by PM3 on Saturday 24th August 14:08
Assuming you will be a UK resident, you will be liable to UK income tax. Any overseas earnings are reportable to HMRC via SA...there's a special form for Foreign Earnings. It does not matter whether you remit the earnings to the UK or retain them overseas: as a UK resident you will be you are liable for tax on the overseas earnings on an accrued basis.
You do not say what country you will be in. If there's a double taxation agreement in placed between that country and UK, then it is highly likely that any withholding tax in the country can be reported via the UK SA Foreign Earnings section and offset against any UK tax liability.
That's my understanding of the way the tax system works.
R.
You do not say what country you will be in. If there's a double taxation agreement in placed between that country and UK, then it is highly likely that any withholding tax in the country can be reported via the UK SA Foreign Earnings section and offset against any UK tax liability.
That's my understanding of the way the tax system works.
R.
frogzap186 said:
Thanks and just had a look at that HMRC page (again) and in my opinion I would not be classed as a UK tax resident for that employment as would be spending less than 91 days in the UK in a tax year and be working more than 35hrs per week when abroad.
AND no family home nor wife/partner in UK ?TBH , its worth doing this thru an expat tax specialist . its not expensive. Said from experience .
frogzap186 said:
Thanks and just had a look at that HMRC page (again) and in my opinion I would not be classed as a UK tax resident for that employment as would be spending less than 91 days in the UK in a tax year and be working more than 35hrs per week when abroad.
Are you being paid for the three weeks you are in the UK?The reference to 91 days only applies to full tax years - you may have issues with the 2024-25 tax year so look into split year rules. If you aren't out for the whole of 2025-26 then you may have issues with 2026-27 & possibly 2024-25.
This flowchart is useful to figure out whether you'd be UK tax resident - https://assets.kpmg.com/content/dam/kpmg/pdf/2016/...
If you're not UK resident, then the next question is whether your employer is and paying you through UK payroll. Does the country you're going to be working in have a dual tax arrangement with the UK ?
It's possible that you could be liable for tax in both places........
If you're not UK resident, then the next question is whether your employer is and paying you through UK payroll. Does the country you're going to be working in have a dual tax arrangement with the UK ?
It's possible that you could be liable for tax in both places........
Thanks for the replies and it is indeed confusing (as everything to do with taxes are of course) and a few more details:
Wife will be remaining in the UK and living with her mother.
We have a house that is currently rented out (though this may change and the tenants are served notice and the wife moves into the house).
Have a son that is almost 25 and lives with his partner.
Wife will be remaining in the UK and living with her mother.
We have a house that is currently rented out (though this may change and the tenants are served notice and the wife moves into the house).
Have a son that is almost 25 and lives with his partner.
Simplistically if you are working full time overseas & not working more than 28 days in the UK then you will be non-resident. Working full time overseas largely means ignoring the ties test.
You have to be working full time overseas however for a complete tax year not just 12 months,
People can over complicate the matter, but it’s really not too difficult if you are clear cut full time working overseas.
Having spent around 20yrs of my career working around the world & dealing with this matter its really not to difficult.
You have to be working full time overseas however for a complete tax year not just 12 months,
People can over complicate the matter, but it’s really not too difficult if you are clear cut full time working overseas.
Having spent around 20yrs of my career working around the world & dealing with this matter its really not to difficult.
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