For individuals living abroad but with UK tax obligations, the Self Assessment system can be confusing and often overlooked. While the UK tax system automatically deducts tax at source for most residents, non-residents with UK income or gains must frequently complete a Self Assessment Tax Return to remain compliant. This article provides a clear, objective guide to understanding and fulfilling your Self Assessment duties as a non-resident.
Who Is Considered a Non-Resident?
Your residency status for tax purposes is determined by the Statutory Residence Test, which considers factors like:
- Number of days spent in the UK.
- Your ties to the UK (e.g. work, family, or accommodation).
- Your previous UK residence history.
If you are deemed non-resident for a particular tax year, you are usually only liable to pay UK tax on your UK-source income and certain UK-based gains, rather than your worldwide income.
When Do Non-Residents Need to Submit a Return?
You may need to file a non-resident Self Assessment Tax Return if you are living abroad but:
- Earn income from UK rental property.
- Have a UK pension that is taxable.
- Are employed or self-employed in the UK.
- Receive income from UK trusts or partnerships.
- Make a capital gain on UK assets.
- Claim a refund for overpaid tax.
HMRC does not automatically issue tax returns to non-residents. You must register for Self Assessment if you believe you have income or gains to report. This should be done by 5 October following the end of the tax year in which the income or gain occurred.
How to Register and File
To register for Self Assessment, complete form SA1 (if you’ve not submitted a tax return before) or SA100 with the SA109 supplement (for non-resident pages). The SA109 is essential for declaring your residency status and claiming the personal allowance if you are eligible.
You can file your return:
- Online, via HMRC’s website (you’ll need a Government Gateway account), or
- By post, using paper forms (the deadline is earlier for paper returns).
Important deadlines:
- 31 October – Deadline for paper tax returns.
- 31 January – Deadline for online tax returns and final tax payment.
Late submissions or payments incur automatic penalties and interest.
Claiming Personal Allowance
Non-residents are not automatically entitled to the UK personal allowance (currently £12,570 per year), which is the amount of income you can earn tax-free. However, you may be eligible if you are:
- A citizen of a country in the European Economic Area (EEA).
- A resident of a country with a reciprocal agreement with the UK.
- A Commonwealth citizen or a former UK resident.
This should be claimed on the SA109 form when submitting your tax return.
Conclusion
Living abroad does not exempt you from UK tax obligations. If you have UK-source income or make gains from UK assets, you may need to submit a non-resident Self Assessment Tax Return to declare your earnings and pay any tax due. Staying informed of deadlines, understanding your residency status, and seeking advice where needed can help you stay compliant and avoid unnecessary penalties.
