Working for an employer Working abroad and tax
If you work abroad but are still classified as a UK resident, your foreign earnings will generally be taxable in the UK and must be declared.
Where the same income is liable to tax in more than one country, it is possible to claim relief to avoid paying tax twice.
Becoming exempt from UK tax on your foreign earnings
To become exempt from UK tax on your foreign earnings, you must be working abroad for at least one whole tax year.
Provided you meet that condition, HMRC will normally also treat as tax-free foreign earnings for a part-tax year from the start of your posting and a part-tax year up to the date of your return (called the split-year treatment).
Time spent in the UK
However, you will count as UK resident (and so lose the exemption from UK tax) for any tax year when you spend 183 or more days in the UK or your visits back to the UK average 91 days a year or more.
For this purpose, you count as being in the UK on any day when you are here at midnight.
For more details see the HMRC guide Residence, Domicile and the Remittance Basis.
- For any tax query, call our experts on the Which? Money Helpline
- Take a look at our guide to buying property abroad
- Filling in a tax return? Read our full expert guide
