Coming To The UK?
Get Expert Tax Advice When Moving To The UK & Ensure Your Tax Affairs Are In Order
Entering a new tax system can be daunting. Properly understanding your UK tax affairs before you arrive can save you time, money, and stress.
At Expat Tax Solutions, we provide you with tax advice when moving to the UK to help you navigate the UK tax system with clarity and confidence.
Understand Your Ongoing UK Tax Obligations
Where you spend your time and where you have homes are key factors in determining your exposure to tax. Proactively understanding your UK tax status and knowing the treatment of your foreign income is imperative to ensure you are fully prepared and not caught out with any unexpected tax bills or penalties, and are able to maximise available reliefs.
Our team will ensure you are fully aware of your ongoing obligations and provide you with tailored tax advice when moving to the UK.
Understand The UK Tax System
Your employment income should be subject to Pay As You Earn (PAYE) withholding tax and National Insurance Contributions (NIC). Your tax withholding is calculated based on your tax code issued by HMRC.
Understanding your tax code is key to knowing whether your UK tax withholding is correct.
Manage Your UK Tax Obligations
UK tax returns are due by 31 January following the end of the tax year on 5 April. Knowing your filing obligations is key to ensuring the deadlines are met and penalties/fines are avoided.
You will be required to file UK tax returns if you have untaxed sources of income and gains, or want to claim exemptions or reliefs for foreign income.
Optimise Your Tax Affairs
It may be possible to structure your global tax affairs to reduce your global tax burden. Being proactive in taking the necessary action will ensure that your tax affairs are optimised and key deadlines are not missed.
UK Tax Checklist For Arrivers
Register With HMRC
You may be required to register for self-assessment tax returns if you have:
▸ Self-employment income
▸ Foreign income or gains
▸ Income from a rental property, interest or dividends
▸ Want to claim certain tax reliefs.
You should notify HMRC of your filing requirement by 5 October following the end of the tax year.
Understand Your UK Tax Residence
UK tax residence is determined by the Statutory Residence Test (SRT). Relevant factors include:
▸ Working and personal time spent in the UK
▸ Access to UK homes
▸ Where your family reside
Knowing your UK tax residence status is vital in understanding your ongoing exposure to UK tax.
Manage Your Global Tax Affairs
If you continue to receive foreign income and gains, you may be subject to tax in that country while also taxable in the UK. If so, double taxation mitigation can be sought via:
▸ The UK’s network of Double Taxation Agreements (DTAs)
▸ The Foreign Income and Gains (FIG) regime
▸ UK specific reliefs and exemptions
Knowing your eligibility to the above is key in ensuring you are not subject to double taxation and your UK tax bill is minimised.
Frequently Asked Questions – Tax Advice When Moving To The UK
When moving to the UK, it’s important to get advice on your UK tax residency status, and your exposure to UK tax on your worldwide income and gains. As a new UK tax resident, you may be eligible for the Foreign Income and Gains (FIG) Regime or for relief via a Double Taxation Agreement.
As a UK tax resident, you are taxable in the UK on your worldwide income and gains however you may be eligible to exempt your foreign income and gains under the FIG Regime. Nevertheless, you will be required to declare your foreign income and gains on your self-assessment tax return.
Not all individuals are required to file UK tax returns and this will typically only be the case if you have untaxed income that you need to pay UK tax on or if you want to claim exemptions and reliefs. If you are required to file, you must register for self-assessment by 5 October following the end of the tax year and file your return by 31 January following the end of the tax year.
If your income is taxable in the UK and another country, you may be eligible for double taxation relief via a Double Taxation Agreement (DTA). This depends on the nature of the income and whether the UK has a DTA with the country in question.
How Can We Help?
Our expert tax advisers can provide you with the following tax advice when moving to the UK:
▸ Review your tax position before you arrive
▸ Submit forms to HMRC on your behalf
▸ Advise on tax residence and double taxation treaties
▸ Help you declare your global income and gains
▸ Support expats with ongoing UK tax returns
Schedule a free consultation for bespoke advice tailored to you.