Our services are designed to optimise your UK tax affairs while you’re travelling. Get help managing your taxes. Our team will help guide you through the process and significantly reduce the amount of tax you have to pay.
HOW DOES UK TAX WORK FOR DIGITAL NOMADS?
If you are employed or self-employed in the UK, you may believe that HMRC will continue to tax your income, given that you are paid into a UK bank account and are under the direction of a UK entity or have clients based in the UK.
However, employment or self-employment income generated through workdays exercised overseas, will not be taxable in the UK, providing that you are non-resident.
UK workdays are taxable
Overseas workdays are not taxable
PAYING UK TAXES AS A DIGITAL NOMAD
Check out the savings you can make through becoming a non-resident and exercising work duties overseas.
To reiterate, for UK tax purposes, it is irrelevant that you are employed by a UK entity, have UK clients or receive income into a UK bank account. What matters, is where you are exercising your work duties.
DIGITAL NOMAD TAX CONSULTANCY SERVICES
Work with experienced nomadic tax advisors to reduce the amount of UK tax you pay
SRT residency planning
GTC can advise on the steps that you can take to exit the UK’s worldwide tax system so that you can minimise tax exposure while living overseas through a non-resident status.
UK tax planning
GTC can advise on your exposure to UK taxation as a non-resident including strategies available to completely remove HMRCs right to tax your incomes.
Nomadic tax planning
GTC can advise on your tax obligations as a global non-resident and make introductions to overseas tax firms to bring your global tax affairs up to date.
UK tax return
GTC can submit your annual UK tax fillings taking into account all reliefs and deductions available to non-residents to ensure that your obligations with HMRC are met.
READY TO BRING YOUR AFFAIRS UP TO DATE?
As a digital nomad, it’s crucial you manage your tax situation effectively to ensure you are not overpaying UK tax.
GTC can assist with UK tax return preparation to reclaim tax suffered via PAYE for employed expats or tax suffered via self-assessment for self-employed expats.
By ensuring your tax affairs are in order, we help you focus on work and travel with peace of mind, knowing you are fully compliant with UK tax laws.
DIGITAL NOMAD FAQs
Do I need to pay tax if I work remotely?
Your resident status is the first and most crucial step in determining the extent to which the UK can tax your incomes and gains.
If you are resident, as a starting point, you will be liable to UK taxation on worldwide incomes and gains and if you are non-resident, you will be liable to UK taxation on UK sources of income and UK property gains only.
If you are non-resident, it is possible to further reduce the UK’s right to tax your incomes and gains through double taxation agreements.
Do I need to pay tax on UK employment income if I work remotely?
If you are non-resident, the UK’s right to tax employment income is limited to income generated through workdays exercised in the UK.
If you suffer tax via PAYE while you are working overseas, you may be due a refund from HMRC. Furthermore, it may be possible to request that you are not subject to tax withholding so you can receive earnings gross of tax.
How can I reclaim tax?
There are two options with respect to receiving your employment income free of UK taxation, as follows:
1) You can receive your employment income gross of taxation. To do this, you must complete and submit P85 form to HMRC. Providing that your application is approved, HMRC will issue a ‘No Tax’ PAYE code to your employer who will be able to pay you tax free.
2) You can receive a refund of tax through self-assessment tax return. To do this, you’ll need to complete SA109 pages to notify HMRC that you are non-resident.
Do I need to pay tax on UK property gains if I work remotely?
If you dispose of a UK residential property while you are a non-resident, the gain that you make will be assessable in the UK.
There are various reliefs and allowances available which reduce the taxable gain.
You must complete an online property return within 60 days of disposal. This is separate from a self-assessment tax return.
Do I need to complete a tax return if I work remotely?
You will be required to file a tax return if you continue to receive UK income while you are overseas.
You may wish to complete a tax return to report your resident status or claim a tax refund.
What are GTC’s tax advisory fees?
Our tax advisory charges differ depending on the area of tax we are advising on and the complexity of the situation.
Our fees will be disclosed in the engagement letter or via email. You will only be charged if you decide to proceed with our services.
