UK income tax for non residents

[cp74]

Tax on your UK income if you live abroad

Find out whether you need to pay tax on your UK income while you're living abroad - non-resident landlord scheme, tax returns, claiming relief if you’re taxed twice, personal allowance of tax-free income, form R43

www.gov.uk

Hi,

I had a contract with an UK employer. I work from abroad. I do not have any work or residence permit in UK too. Should i claim my income and pay tax to UK gov? Based on the above link, i think i should. Double taxation is another issue then. If i should claim, i will also manage that. But i also need to understand how much i should pay.

Due to some other reasons, i may plan to start an LLC in UK too. What details do you recommend to take care of or what may be the best action plan? Sorry try to get "free" tax advice from here I wish i may join mentor group later.

For sure i may not pay any tax in any country but it's not my purpose indeed. If there's a legit way for tax free or lower tax, i hundred percent prefer that.

PS. They pay via UK bank to Wise as GBP.

Regards,

 

[Larin]

Hello,

Generally speaking, if you were not physically present in the UK while working, the income would not be considered to be UK-sourced income and no tax in the UK would be payable. It is true that you would be liable to pay tax on your UK income (as per your link), but income is attributed to where you were physically while performing the services and not where your clients are located. Therefore, provided you were not in the UK while performing these services, the income is not UK sourced and no UK taxes are due.

Here is a somewhat helpful guide by PwC (https://www.pwc.com/m1/en/tax/documents/uk-tax-filing-requirements-for-non-uk-residents.pdf - second column, bottom)

*This of course is not a tax advise and I would encourage you to contact an appropriate service provider to get a definitive answer!

*Edit: to avoid confusion, the above rule is generally applied to wages, different rules would apply to different sources of income (pensions, savings interest, etc.)