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United Kingdom Tax Guide
Everything digital nomads need to know about taxes in United Kingdom
183 day threshold
GBP
Updated 2024-12-01
Overview
The UK uses the Statutory Residence Test (SRT) to determine tax residency. Non-residents are only taxed on UK-source income. The UK offers favorable treatment for non-domiciled individuals.
Quick Facts
183
Day Threshold
GBP
Currency
20%
Top Tax Rate
12+
Tax Treaties
Tax Residency Rules
How United Kingdom determines tax residency
- Statutory Residence Test (SRT) determines residency
- Automatic UK tests: 183+ days, only home in UK, full-time work in UK
- Automatic overseas tests: Less than 16 days (previously resident) or 46 days
- Sufficient ties test for borderline cases
Tax Rates
| Type | Rate | Description |
|---|---|---|
| Income Tax | 20% - 45% | Basic (20%), Higher (40%), Additional (45%) |
| National Insurance | 12% / 2% | Employee contributions |
| Capital Gains | 10% - 20% | Basic rate 10%, Higher rate 20% |
| Dividend Tax | 8.75% - 39.35% | Depends on income band |
Special Programs
Non-Domiciled Status
UK residents not domiciled in UK can use remittance basis of taxation
Eligibility
- •UK resident but not UK domiciled
- •Must claim remittance basis
- •Annual charge applies after 7 years of residence
Benefits
- Only UK income and gains taxed
- Foreign income/gains only taxed when remitted to UK
- Useful for those with significant foreign income
Overseas Workday Relief
Reduce UK tax on employment income for non-domiciled individuals
Eligibility
- •Non-UK domiciled
- •Claiming remittance basis
- •Working partly outside the UK
Benefits
- Portion of salary for overseas work not taxed if not remitted
- Available for first 3 years of UK residence
Filing Requirements
- 1Self Assessment if self-employed or complex affairs
- 2Tax year: April 6 to April 5
- 3Online filing deadline: January 31 following tax year
- 4Payment on Account may be required
Remote Work Considerations
- • Work location determines where income is taxed
- • UK workdays create UK tax liability
- • Non-dom status can help with foreign workdays
- • Consider split contracts for international roles
Double Taxation Treaties
United Kingdom has tax treaties with these countries
USA
Germany
France
Spain
Portugal
Italy
Australia
Canada
Singapore
Hong Kong
Thailand
UAE
Frequently Asked Questions
What is the Statutory Residence Test?
The SRT is a series of tests that determine UK tax residency based on days spent in the UK, connections to the UK, and work patterns.
How many days can I spend in the UK without becoming resident?
It depends on your ties to the UK. With no ties, up to 182 days. With many ties, as few as 16-45 days could trigger residency.
Important Disclaimer
This guide provides general information only and should not be considered professional tax or legal advice. Tax laws change frequently, and individual circumstances vary. Always consult with a qualified tax professional familiar with United Kingdom tax law before making decisions based on this information. Last updated: 2024-12-01.
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