You might be living abroad, but that doesn't necessarily mean you're out of the taxman's reach. Here's a quick breakdown of HMRC's rules about self assessment tax returns for expats.
Self Assessment for Expats
If you're living or working abroad, you may still have to pay UK tax on some or all your income. It all depends on where the money's coming from and what your tax residence status is. This can be a tricky issue, so it's definitely worth getting professional advice about it.
Generally, you only pay UK tax on foreign income if you're a UK resident. There are specific rules about what counts as UK residency, but they basically boil down to:
If you answered yes to either of these, the chances are you're a UK resident in the taxman's eyes.
Self Assessment EnquirySelf Assessment for Expats
Even expats living permanently overseas sometimes find themselves in HMRC's sights. For example, you might have to pay UK tax if:
In most cases, you'll find yourself filing a self assessment tax return for any income that qualifies for UK tax.
Self Assessment for Expats
Usually, your "domicile" is the country where you have your permanent home. Strangely, it's possible to be a UK resident with a permanent home abroad. It's called being "non-domiciled", and there are special tax rules about that.
For expats, you might still be considered to have a "deemed domicile" in the UK under certain conditions. For instance, for inheritance tax, being a UK resident for 17 of the last 20 years might make it your deemed domicile.
The rules can be tricky, which is one of many reasons why it's best to get professional advice. You really can't afford to go on guesswork here.
Self Assessment for Expats
HMRC uses a standard residency test to decide whether you qualify for UK tax. Your tax residence status depends mostly on the number of days you spend in the UK, along with some other factors. For example, you're automatically considered a non-UK resident if:
There's a lot more to it than that, of course, and getting your status wrong can be a nightmare. Get in touch with RIFT to be sure where you stand.
Contact UsSelf Assessment for Expats
Generally, you'll sort out your UK tax with a self assessment tax return. You can do it online by registering with HMRC and getting a Unique Taxpayer Reference (UTR) number. Don't ignore a demand from HMRC, or assume it was a mistake. Even if you end up not owing any UK tax, you might still have to file a return.
There are hard-and-fast deadlines for filing a self assessment return, and for paying any tax you owe. Penalties start at £100 for filing even one day late, so don't leave it too long!
Self Assessment for Expats
Absolutely! RIFT has been helping people file their self assessment returns since 1999, and we're the UK's top tax experts. Call on 01233 628648 or email info@riftrefunds.co.uk to see how we can keep you out of hot water overseas. We specialise in tax refunds, we could even put money back in your pocket while we do it!
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Wondering if you can claim a tax refund or need to submit a tax return? Use our online tools to find out if you're owed money by HRMC.
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