Five Things About Taxes For An Expatriate In The UK

What you should know about taxes if you have spent any time in the United Kingdom.

14:40 21 March 2013

If you are living in the United Kingdom but are originally from the United States you may have a difficult year of taxes. The United Kingdom tax year runs from 6th April to 5th April the following year, and there are provisions within the UK tax code for both short term visitors as well as longer term expatriates in the UK.

 

Short term visitors:

 

• Short stays in the UK, such as stays less than thirty days (although new tax regulations may change this to stays less than ten days), are completely exempt from taxation.

 

• Stays between thirty and ninety-one days have taxes automatically withheld using the PAYE (Pay As You Earn) system unless special permission is otherwise obtained from the IR.

 

Long term expatriates in the UK:

 

• Figured depending upon the type of residence status that is assigned.

 

• Typically between 2 to 3 years residence is considered a resident, but not ordinarily a resident (R/NOR)

 

• Staying as expatriates in the UK for three or more years will be considered normal residence status.

 

Keep in mind that these regulations may change at any time, and even slight changes which are currently happening may cause the specific mode of residence analysis to shift as well.

 

The best bet, as expatriates in the UK, is to contact Personal Tax International to see if they can assist you. They won’t assist seasonal workers, students, or NHS workers.

 

An additional source for expatriates in the UK is the HM Revenue & Customs department. Since the laws and taxation regulations depend heavily upon a number of factors, contacting the department directly will ensure you have the most up to date information and will know what to do once tax time arrives.

 

When in doubt, contact HMRC.