Filing a UK tax return while living abroad is a common requirement for British expats, non-residents with UK income, or anyone who still has tax obligations in the UK.
Here is a step-by-step guide to help you understand how to file a UK assessment tax return while living overseas.
Who needs to file a UK tax return while living abroad?
It may be needed to file a self-assessment tax return if you:
- Receive UK rental income
- Earn UK self-employment or freelance income
- Have a UK pension or investment income
- Are a director of a UK company
- Qualify as a non-resident landlord
- Have capital gains from selling UK assets
- Are told to file by HMRC
Even though, you may no longer be a UK resident, UK-source income can still be taxable under UK law.
Step-by-step: How to file a UK tax return while living abroad
- Registration for self-assessment: If this is your fist time filing, you can use HMRC’s online form to register. After the registration, you will receive a Unique Taxpayer Reference (UTR) number.
- Let HMRC know you are living abroad: you will be required to complete form P85 when you leave the UK to tell HMRC that you are moving overseas. If you have already left, you can still file retrospectively. You may alsp be required to claim non-resident status via the self-assessment tax return (SA109 form).
- Claim non-resident status (If applicable): You may use the SA109 Residence supplemmentary page as part of your self-assessment to declare non-residence under the Statutory Residence Test (SRT) and avoid UK tax on foreign income.
- Complete your tax return: The tax year runs from 6 April to 5 April. The self-assessment must include all UK Income, any foreign income if you are still classed as UK resident.
- Submit and Pay: The online filing deadline is on 31 January following the end of the tax year. The paper filing deadline is on 31 October, similarly payment deadline is 31 January which is same as filing.
Double Taxation Relief
If you are living in a country that has a Double Taxation Agreement (DTA) with the UK, you might be able to:
- Avoid being taxed twice on the same income
- Offset foreign tax paid against your UK tax bill
You must claim this relief on self-assessment return, typically using supplementary forms or notes.
Claiming Tax Relief and Allowances
Even as a non-resident of UK, you may be able to claim:
- Personal allowance of £12570
- Mortgage interest as an expense
- Maintenance and repair costs on UK property
- Professional fees related to property management or tax advice
Conclusion
It is an important responsibility to file non resident self assessment tax return for anyone while living abroad with UK income or financial ties to the UK. Whether as a landlord, retiree or entrepreneur, understanding your residency status, keeping up with Self- Assessment deadline and using the correct forms and software are key to staying compliant.
With the right preparation and guidance one can claim double taxation relief and can efficiently manage their UK tax obligations from anywhere in the world.