pay UK tax when I live abroad

Everything You Need to Know About Living Abroad and UK Tax

19/10/2022tax , Tax Issues , Tax Saving Tips

If you are a businessman who is carrying out a business in the UK, however, you are not living in the UK but you are someone who is settled abroad. There are chances for individuals who are not residing anywhere in the UK but they have their properties here and they are earning through making them as rental properties. You will have to deal with the different scenarios of tax implication by HMRC and you are dishing pit everything that makes you obliged to have an understanding of what to do when ‘pay UK tax when I live abroad.


Reach out to our smart and clever-minded guys to get your pay UK tax when I live abroad queries answered quickly. We will help to let you decide about your annual accounts with a clear mind.


How to Pay UK Tax When I Live Abroad?

It all depends on the unique circumstances of your earning sources. In the case you are an individual who is earning through multiple sources in the UK, you will be in a position to be obliged for the tax implications in the UK. This payment could possibly be from savings, pensions, rental property, or a business.

When you have settled abroad and might have a source of income in the UK by having a rental property, you are in a position to get the allowance amount of £12,570 in every tax year. In the same way, as you are entitled to get the benefits, you will be entitled to duties and responsibilities. This means you will have to pay income tax.


Am I Obliged to Pay Tax in the Country I am Settled?

As discussed earlier that the tax responsibilities and tax implications are a serious matter to HMRC and when it comes to tax affairs, there is a very slim margin provided by HMRC. This makes the scenario a little complicated because you will be in a position where you will have to deal with the tax implications of the UK and the other country that you are settled in.

Moreover, the only exception will be there unless the country you are living in has a double tax agreement with the government of the UK. This is also known as DTA. A double tax agreement turns out to be a very beneficial agreement for saving the individuals who have settled abroad but earning in the UK as well. This way you will keep yourself away from the edible tax payments. In other words, we can say that you will no longer be required to pay the tax in both countries and the tax authorities will spare you in case of DTA. It will make you apply for any one of the following:

  1. You will be able to get a tax refund if you have paid the double tax.
  2. You will enjoy partial tax relief.
  3. You can enjoy full tax relief.


The Prominent Differences Between a Non-UK Resident and a UK Resident

It is imperative to develop an understanding of the differences that make the residents of the UK and the non-residents of the UK who are settled abroad. You will have to consider the following conditions to be called a UK resident:

  • You are required to complete the duration of 183 days to stay in the UK within a tax year to be considered a UK resident.
  • You will have to work for a minimum limit of 274 days within a tax year in the UK and this should be your main job.
  • You should have a property in the UK and you must spend 91 consecutive days in that property you own in the UK.

Moreover, when it comes to the tax terms for the residents and the non-residents of the UK. If you are a non-UK resident, you will have to pay tax on the income earned in the UK. However, if you are not residing in the UK but are considered a resident, you are liable to all tax implications in the UK and the other country.


The Bottom Line

Now that you have gathered a fair amount of information about the pay UK tax when I live abroad, we can say that it matters a lot to know whether you are considered a UK resident or a non-UK resident to relate to your tax responsibilities. This can vary from one scenario to another because every person is in a unique situation. We hope these few minutes of reading will help you to develop a better understanding and you will now be able to handle your tax affairs efficiently in the future.


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Disclaimer: The general information provided in this blog about pay UK tax when I live abroad includes its text and graphics. It does not intend to disregard any of the professional advice.

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