/ Expat Life

UK taxes as an expat

No one likes taxes. Unfortunately, they are a necessary part of life and the UK is no different.

The UK is has a developed tax system that helps pay for a lot of the countries infrastructure. As a foreigner living in the UK you will help pay for the NHS (the health service), public school system, road infrastructure, police force, and much more.

Income tax

If you’re employed your employer will deduct Income Tax from your wages. This means that is one less admin headache that you have as an international person moving to the UK as it is sorted out for you.

If you're self employed or have other income you’ll have to send a Self Assessment tax return.
You may also have to send a tax return if you:

  • Made a profit when selling (or ‘disposing of’) certain assets, eg shares or a second home

  • Have to pay UK tax on foreign income, eg savings in an overseas bank account

  • Rent on a property you let out or an overseas pension - this depends on if you’re ‘resident’ in the UK
    You may have to pay tax on UK income or gains made while you were abroad if you’ve lived in the UK before.
    The UK has tax bands, which means that you will pay different tax rates on different income amounts. The current tax bands are:

  • Personal Allowance: Up to £11,500 0%

  • Basic rate: £11,501 to £45,000 20%

  • Higher rate: £45,001 to £150,000 40%

  • Additional rate: over £150,000 45%