Registering For Self Assessment As An Expat

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Registering For Self Assessment As An Expat

So, you’ve finally decided to up sticks and go and live overseas. Maybe it’s the British weather, the cost of living or simply that you can no longer resist the appeal of living in another country (probably one with sunnier weather). Perhaps you’re already living the dream in another country. Moving overseas means you’ll be able to leave behind many things, but paying UK tax may not be one of them.

Article written for Expat Network by GoSimpleTax

What UK tax do expats pay?

As a “non-resident” expat, UK Income Tax may still be payable on pension payments you receive, as well as land or property rental income, savings interest and wages from UK employment.

If you’re eligible for Personal Allowance, you won’t pay UK Income Tax until your annual taxable income is more than £12,570 (2024/25 tax year). If it’s above £100,000, the Personal Allowance decreases by £1 for every £2 increase in net income until it reaches £125,140, after which you won’t get any Personal Allowance.

Expats do not usually pay UK tax on gains made from selling an asset, unless it’s UK property or land. And non-residents don’t pay UK tax on State Pension payments they receive or interest from UK government securities (‘gilts’).

A word of warning. Income Tax is not automatically deducted from interest on savings and investments, you must report it via Self Assessment and pay any tax due. The amount of tax you pay on your taxable UK income will be determined by the Income Tax band into which your overall taxable income falls.

Need to know! The overseas country in which you live might tax you on your UK income, but you may be able to claim UK tax relief to avoid being taxed twice, if the country has a “double-taxation agreement” with the UK.

What about UK tax on income earned overseas?

If you are not resident in the UK and you have foreign income or gains during the tax year, you won’t pay UK tax on this income.

If you later become UK resident and you bring your foreign income or gains to the UK, you may be required to report this to HMRC via a Self Assessment tax return. You can either pay UK tax (which you may be able to claim back if you’ve already paid tax overseas on the same income or gain) or claim the “remittance basis”.

How to report your taxable UK income

If you live overseas permanently but have taxable UK income to report to HMRC, you need to fill out and file a Self Assessment tax return (SA100) and resident supplementary page (the SA109 form).

If you earn UK taxable rental income, you’ll also need to complete and file the SA105 form. If you earn taxable UK income from self-employment, you may also need to file the SA103 form. You may need to file other supplementary pages.

You cannot use HMRC’s online services to file your Self Assessment tax return and any supplementary pages if you live outside of the UK. You can get around this problem by using commercial Self Assessment filing software, which is cheaper than paying a UK-based accountant to do it for you.

Need to know! The deadline for filing your Self Assessment tax return online is midnight on 31 January following the end of the tax year during which you earned UK taxable income. The UK tax year runs from 6 April until the following 5 April. There is an automatic £100 fine if you miss the filing deadline.

Registering for Self Assessment

Before you can submit a Self Assessment tax return, of course, you’ll need to register for Self Assessment (the system HMRC uses to collect Income Tax). If you’re not already registered, you need to do it before 5 October following the end of tax year (5 April) during which you had taxable UK income. If you don’t register in time, HMRC could charge you a penalty.

If you’re not self-employed, but live overseas and have UK taxable income to report, to register for Self Assessment you complete form SA1 (online or offline).

Top tip! Before you start the Self Assessment online registration process, make sure you have all of the information you need to hand. You’ll need to tell HMRC your full name, postal address, date of birth, daytime telephone number and UK National Insurance number. You’ll also need to explain why you need to register for Self Assessment and give the date from which you started earning taxable UK income.

After you’ve registered, normally HMRC will contact you within 21 days (it can take longer during busy periods). Register online and you may be able to get your Unique Taxpayer Reference (UTR) number sooner using the HMRC app or your personal tax account. You’ll need your UTR to complete your Self Assessment tax return.

Need to know! If you’ve registered for Self Assessment previously, but did not send a tax return last year, you’ll need to register again to reactivate your UK tax account.

Letting HMRC know that you’re moving overseas

You must tell HMRC if you’re leaving to go and live overseas permanently or you’re going to work in another country full-time for at least one full UK tax year.

If you don’t usually complete a Self Assessment tax return and you’ve already left to go and live in another country, you need to fill in form P85 online. If you’re still in the UK, fill in form P85 offline and include Parts 2 and 3 of your P45 form (if you’re employed in the UK).

If you normally complete a Self Assessment tax return, because you’re self-employed, a landlord or need to report other taxable income, you must also complete the resident supplementary page (form SA109) to report your residence and domicile status, if you’re now living in another country. You must use commercial filing software to do it because you cannot sign in from overseas to do it online.

You could pay a UK accountant to take care of your UK tax returns, but using commercial filing software to do it yourself is simple enough and it could save you hundreds of pounds a year.

About GoSimpleTax

Record Income, Expenses and tax submission all in one.

It is the solution for non-residency returns, the self-employed, sole traders, freelancers and anyone with income outside of PAYE.

The software will provide you with hints and tips that could save you money on allowances and expenses you may have missed.

Get started with GoSimpleTax today, it’s free to try.

Moving Abroad Checklist

Initial Considerations

Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

Are you taking family with you?

Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.