If you have left or are leaving the UK partway through the tax year you need to consider your eligibility for split year treatment which will enable you to split the tax year into two parts.
Should you qualify for split year treatment and no longer be in receipt of any UK sourced income you can make a claim for a tax refund due to unused personal allowances by preparing a form P85 leaving the UK.
As a non-UK tax resident you will need to lodge a UK Tax Return with HM Revenue & Customs if you have:
You will need to register for self assessment and lodge a UK Tax Return if not already registered.
If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or do not have an exemption from UK tax obligations in relation to your UK Pension.
When considering an overseas secondment to Australia you must first give consideration as to what your tax implications are in Australia and the UK being the country you are leaving.
The questions to consider:
Your tax residency is fundamental to determine who has taxing rights over your worldwide income with particular reference to the salary being offered to you.
As a Tax Resident of Australia you are subject to income tax on your worldwide income.
It is possible to be a dual resident with the UK. Should this be the case you would need to consider which country has overriding residency which is commonly referred to as treaty residency as it is the conditions set in the double taxation agreement which would determine this deciding point.
Once your residency position has been determined you can better understand who has taxing rights over your income along with your tax reporting obligations in both countries.
If you have left or are leaving the UK partway through the tax year to live or work in Singapore, Hong Kong or Dubai (UAE) you would need to consider your eligibility for split year treatment which will enable you to split the tax year into 2 parts.
Should you qualify for split year treatment and no longer be in receipt of any UK sourced income you can make a claim for a tax refund due to unused personal allowances by preparing a form P85 leaving the UK.
As a non-UK tax resident you will be required to lodge a UK Tax Return with HM Revenue & Customs if you have:
You will need to register for self assessment and lodge a UK Tax Return if not already registered.
If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or have an exemption from UK tax in relation to your UK Pension.
If you have left or are leaving the UK partway through the tax year to live or work in Hong Kong, you would need to consider your eligibility for split year treatment which will enable you to split the tax year into 2 parts.
Should you qualify for split year treatment and no longer be in receipt of any UK sourced income you can make a claim for a tax refund due to unused personal allowances by preparing a form P85 leaving the UK.
As a non-UK tax resident you will be required to lodge a UK Tax Return with HM Revenue & Customs if you have:
You will need to register for self assessment and lodge a UK Tax Return if not already registered.
If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or have an exemption from UK tax in relation to your UK Pension.
If you have left or are leaving the UK partway through the tax year to live or work in Dubai you would need to consider your eligibility for split year treatment which will enable you to split the tax year into two parts.
Should you qualify for split year treatment and no longer be in receipt of any UK sourced income you can make a claim for a tax refund due to unused personal allowances by preparing a form P85 leaving the UK.
As a non-UK tax resident you will need to lodge a UK Tax Return with HM Revenue & Customs if you have:
You will be required to register for self-assessment and lodge a UK Tax Return if not already registered.
If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or have an exemption from UK tax in relation to your UK Pension.
If you have left or are leaving the UK partway through the tax year to live in Singapore you need to consider your eligibility for split year treatment which will enable you to split the tax year into 2 parts.
Should you qualify for split year treatment and no longer be in receipt of any UK sourced income you can make a claim for a tax refund due to unused personal allowances by preparing a form P85 leaving the UK.
As a non UK tax resident you will be required to lodge a UK Tax Return with HM Revenue & Customs if you have:
You will need to register for self assessment and lodge a UK Tax Return if not already registered.
If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or have an exemption from UK tax in relation to your UK Pension.
To determine your UK tax residency status there are various Statutory Residence Tests to be applied split into the various parts.
If you have been in the United Kingdom for greater than 183 days then you do not need to consider these tests.
You will not be considered resident in the UK for the whole tax year if you do not meet any of the following:
There are 3 tests to consider.
You’ll be non-UK resident for the tax year if you were resident in the UK for one or more of the 3 tax years before the current tax year, and you spend fewer than 16 days in the UK in the tax year.
You’ll be non-UK resident for the tax year if you were resident in the UK for none of the 3 tax years before the current tax year, and spend fewer than 46 days in the UK in the tax year.
You’ll be non-UK resident for the tax year if you work full-time overseas over the tax year and:
A significant break is when at least 31 days go by and not one of those days is a day where you:
If you have a significant break from overseas work you’ll not qualify for full-time work overseas.
The test:
The rates of UK Tax are the same for non-residents and tax residents of the UK.
Listed are the rates of tax you pay after the Personal Allowance of £12,570.
You do not get a Personal Allowance on taxable income over £125,140.
| Income | Band | Rate |
|---|---|---|
| £0 – £12,570 | Personal allowance | 0% |
| £12,571 – £50,270 | Basic rate | 20% |
| £50,270 – £150,000 | Higher rate | 40% |
| £150,000 + | Additional rate | 45% |
The temporary non-residency rules prevent a former UK tax resident from being absence from the UK for a short period of non-residence to realise income or gains outside of the UK and avoid paying tax in the UK.
These rules will apply if the you have been a UK tax resident in at least four of the seven years prior to the date of your departure and you become a tax resident again with five years of that date.
Capital gains and receipts subject to income tax that may arise during the period of temporary non-residence are then caught by these rules and are brought into charge.
As a non-UK tax resident you will need to lodge a UK Tax Return with HM Revenue & Customs if you have:
You will need to register for self assessment and lodge a UK Tax Return if not already registered.
If your only source of income is from wages or pension you may not need to do a tax return unless you have a liability to tax or do not have an exemption from UK tax in relation to your UK Pension.
If you own a property in the UK that you rent out and receive income you will pay tax in the UK on the profit you make from renting out the property after deductions for allowable expense.
Allowable expenses are costs that are incurred in the day to day running of the property such as:
There are different tax rules for:
The rental income received and expenses incurred are reported on your Self Assessment Individual Tax Return and income tax is charged on the net profit after taking into consideration your personal tax allowance (if applicable).
Under the UK’s Non-Resident Landlord (NRL) scheme a landlord with a usual place of abode outside of the UK has tax on their UK rental income collect by a UK letting agent or tenant can apply to HM Revenue & Customs (HMRC) to receive their rental income from the UK property without tax being deducted.
Upon receipt of approval granted by HMRC the rental income will be received gross by the landlord.
As a non-UK tax resident the only gains that are reportable to HMRC are those in relation to the disposal of UK property or land:
You may be eligible to pay National Insurance Contributions while you are working or living overseas.
This will be dependent on where you are working and how long for.
You might be eligible to make voluntary class 2 national insurance contributions while overseas.
If you work abroad temporarily, you will need to consider your tax position in the UK and the overseas country separately. If you work overseas, you are likely to be taxable in the overseas country where you work whether or not you remain taxable in the UK will depend of your residency position.
When considering whether or not your earnings from employment are UK earning or non-UK earnings, it is the place of performance of your duties which is relevant and not the location of your employer or where you are paid (though these factors may have an impact on your overall position.
Claim income tax refund on UK generated PAYE income for part of the year.
If you are leaving the UK part way through the tax year and will no longer be in receipt of any UK sourced income once you are departed you can make a claim for a tax refund by completing a form P85 Leaving the UK – getting your tax right.
You are required to file a UK Tax Return should you have the following income
You will need to register for Self Assessment before you can submit a Tax Return to HMRC.
Once you have registered to you file a tax return by using commercial software, paper forms or by using the services of accountants such as GM Tax.
Failure to lodge your tax return can result in penalties of up to £1,300.
Failure to your taxes on time will result in interest from being charged from the due date of payment.
HMRC will charge daily interest for fines exceeding three months.
The penalty rates are available through the HMRC website.
It is important to obtain arrival income and capital gains tax advice and guidance when considering arriving in the UK to ensure that you are fully aware of your tax position.
Your tax residency is fundamental as this determines how your worldwide income is taxed and reported. When arriving to the UK it is important to know the effective date that you commenced to be a UK tax resident for tax purposes as this date should not be mixed up with the date of arrival.
Speak to our UK tax experts for fixed fee quotes for UK tax advice, UK annual tax returns and Capital Gains Tax returns.
If you are being seconded to Australia and would like a fixed fee proposal from a firm of tax advisors that understands the issues affecting expats living and working overseas please complete our contact us button or by calling a GM Tax office closest to you.
Contact UsIf you are in receipt of UK sourced income and your income exceeds the personal tax allowance then yes you will pay UK tax.
If you are required to lodge a UK Tax Return you will need to register for self assessment and obtain a UTR number to enable you to lodge a Tax Return.
You do this by submitting a form SA1 – Registering for Self Assessment to the HMRC. Upon receipt HMRC will issue you with a UTR number.
You can register online via HMRC website or we can assist you by preparing a form SA1 registering you for Self Assessment and submitting to HMRC on your behalf.
The filing deadline will vary depending of whether you are lodging a paper or electronic tax return:
If you work abroad temporarily, you will need to consider your tax position in the UK and the overseas country separately. If you work overseas, you are likely to be taxable in the overseas country where you work whether or not you remain taxable in the UK will depend of your residency position.
When considering whether or not your earnings from employment are UK earning or non-UK earnings, it is the place of performance of your duties which is relevant and not the location of your employer or where you are paid (though these factors may have an impact on your overall position.
If during a year you either start to live or work overseas – or come to the UK from overseas to live or work in the UK – the tax year will be split into 2 parts if your circumstances meet specific criteria:
The remittance basis is an alternative tax treatment available to individuals who are resident of the UK but not domiciled in the UK and have foreign income and gains.
