Top 6 Expat Tax Tips for Individuals Moving to the UK

The liability extent of the income tax depends on the residential status of the individual in the UK. This statute is primarily defined by the rule of the Statutory Residence Test (SRT). Whether the individual is living and serving outside the home country? When can an individual become a resident for tax purposes? How much earning tax could an individual need to pay when they move abroad? Indeed, the expat tax CPA in the UK can be a little complicated.

Taxes for expats When They Move to the UK

The expat tax CPA in the UK is not that straightforward. It is mandatory to fill in the tax return to the country you carry a citizenship card. The UK expats may need to fulfil the UK tax return if they get a rental income from their UK properties. In addition, they need to complete this process even if they serve in the UK. 

  1. Learn whether Expats must Pay Taxes

The tax regime in the UK shows an incredible variation. In some locations, there are no charges for income tax returns for both residents and non-residents. Nonetheless, other locations have systematic territorial taxation that asks for tax returns on the income obtained from that location. There is an exemption from income tax returns outside the location. Find out more about tax from tax specialists.

  1. Individuals Become a Resident for Taxes

Although every country has a set of rules to comprehend when an individual can become a tax resident, the UK government conducts a Statutory Residence Test to figure out the residence stature of a tax year.

  1. Individuals with Dual Residential Occupancy in More than a Nation

It is possible to hold a dual tax residence. However, in such a case, one has to ensure that they have understood the residency statutes of both countries. He must have the acquisition of all the dual taxation agreements. Plus, the awareness of the beginning and end of the tax year should also be noted.

  1. Taxes for expats in the UK
  • Residence and Domicile

In the UK, the liability of an individual to personal taxes depends majorly on the tax residence and the domicile status. In addition, other factors include their location for tax purposes, capital gains, and source of earnings.

Nonetheless, UK citizens residing abroad do not have to pay tax on their foreign income in the UK. However, a UK resident should pay taxes on all types of income irrespective of whether or not the source of income is from the UK or abroad.

  • Non-domiciled Residents

The category marked by the UK for the non-domiciled residents displays there might be no need to pay UK taxes on their foreign income. This is especially for those who are permanent residents of a country outside the UK. 

  1. Foreign pensions

Individuals who have partaken in the pension plan of the non-UK before April 2017, being a non-resident of the country, may either get a huge amount from the foreign pension plan or a partial tax-free.

  1. Social Security

Since the UK maintains agreements with several other countries, you can obtain a social security system in your homeland while working in the UK. This is highly advantageous to have a lower rate of social security at home than the UK rate of National Insurance for both employers and employees.

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