Foreign Residency

Foreign Residency


In order to qualify as non-UK resident and income not being taxable in the UK, the HMRC residency criteria need to be met during a tax year.

If the contract starts/ends part way through a tax year, then ‘split-year treatment’ would be applied. []


If the employer is UK based then a ‘no tax’ NT UK tax code can be obtained via form P85.  Any duties performed in the UK may be treated as UK income. []


Any investment income can be treated as ‘Disregarded income’ and you would not need to complete a UK self-assessment by virtue of the investment income. []

However if you wish to complete a self-assessment in order to utilise the UK tax free personal allowance, then all UK sourced income would need to be included in the self-assessment.


If there is any UK rental income you can apply for this not to be taxed in the UK. []


Please also be aware of mechanisms to avoid being taxed in both countries. []


The HMRC comprehensive guidance on Residency is RDR3. []

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