Taxpayers who return to the UK

There are tax implications that you will need to consider if you previously left the UK to live abroad and are now either returning to live and work in the UK or are considering such a move. In most cases, if you have returned to live in the UK you

There are tax implications that you will need to consider if you previously left the UK to live abroad and are now either returning to live and work in the UK or are considering such a move.

In most cases, if you have returned to live in the UK you will be classed as resident in the UK and will be required to pay UK tax on your UK income and gains and any foreign income and gains.

Your exact liability to Income Tax will depend on whether you are resident and / or ordinarily resident and / or domiciled in the UK. For example, you may not be liable to UK tax on foreign income and gains if your domicile remains outside of the UK. The domicile rules are complex, and you must give consideration if affected.

When you return to the UK, you will need to register for Self-Assessment if required to do so, for example, if you are self-employed or have income / gains from abroad to report to HMRC. You would not usually be required to register for Self-Assessment if you are returning to the UK to accept a job as an employee and do not have other income to report.

If you had moved abroad and returned to the UK after a period of less than 5 years (temporary non-residence) you may have to pay tax on certain income or gains made while you were non-resident. This does not include wages or other employment income. If you were away from the UK for less than a full tax year then you will usually be liable to pay UK tax on any foreign income for the entire time you were away.

Source: HM Revenue & Customs Tue, 28 Jun 2022 00:00:00 +0100

Latest INSIGHTS

Check out our latest Insights for useful accounting tips and information.

Are we unpaid tax collectors?

Business owners often refer to VAT as if it were a cost to their business regardless of their VAT position; whether they are registered for VAT or not.

If you are not registered for VAT, you do not have to add VAT to your sales and you cannot

Read More

Child Benefit for 16 – 19 year olds

More than a million parents will receive reminders to extend Child Benefit for their teenagers if they are continuing their education or training after their GCSEs.

HM Revenue and Customs (HMRC) is sending more than 1.4 million Child Benefit

Read More

Multiple Dwellings Relief for SDLT

It was announced as part of the Spring Budget 2023 that Multiple Dwellings Relief (MDR) was being abolished. This change has now come into effect for transactions which complete, or substantially perform on or after 1 June 2024.

The MDR relief

Read More