Whether you need to pay depends on if you’re classed as ‘resident’ in the UK for tax. If you’re not UK resident, you will not have to pay UK tax on your foreign income. If you’re UK resident, you’ll normally pay tax on your foreign income. But you may not have to if your permanent home (‘domicile’) is abroad.
Is Your Business resident to pay tax in the UK?
Your UK residence status affects whether you need to pay tax in the UK on your foreign income. Non-residents only pay tax on their UK income – they do not pay UK tax on their foreign income. Residents normally pay UK tax on all their income, whether it’s from the UK or abroad.
How to prove you are a UK resident?
If you want to prove you’ve lived in the UK for a different 5 years
- tax documents – for example your P60 or P45.
- a letter from your employer confirming your employment.
- pension statements showing your employer’s pension contributions.
- council tax bills.
- mortgage statements for a house or flat.
Can a non UK resident work for a UK company?
2. If the employee has no previous ties to the UK, then the feedback from Euan McLennan to a similar, earlier query is appropriate: If a UK company pays a non-UK resident for work done outside the UK, the employee is not subject to UK income tax on the salary and PAYE is irrelevant.
Do you pay UK tax if you work outside UK?
If a UK company pays a non-UK resident for work done outside the UK, the employee is not subject to UK income tax on the salary and PAYE is irrelevant. There is no need to contact the Revenue to get a PAYE code of NT issued.
Can a UK company work in an overseas country?
In most circumstances, we would not advise working through your company overseas without taking advice from our overseas tax specialists, as there may be legislation in place preventing you from doing so and strict penalties for non- compliance in certain countries. We suggest that you speak to one of our tax advisers for further information.
Can a UK employee work in another country and still pay UK NICs?
Workers temporarily posted by their UK employer to one of these countries may be able to continue paying contributions to the UK instead of to the country you post them to. If this is the case, apply to HMRC for a ‘Certificate of Continuing Liability’ for the employee so they can carry on paying UK NICs.
