Guide to paying tax in the UK for foreigners

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The approximate population that pays tax is around 33 million. And that includes foreigners and expats as well. Basically, if you work or live in the United Kingdom – Northern Ireland, Wales, England, and Scotland, you will have to pay the taxes. Even though Scotland has a slightly different way of tax collection. Anyone with citizenship outside of these countries is deemed a foreigner, and if you are thinking of working in the UK or planning to settle down, it is better to know about the tax bands and how everything works in the UK.

Before we begin, keep in mind that residents of the UK have to pay tax on their worldwide income. Whereas the expats, or foreigners, only have to pay tax based on their income in the UK. Let’s see what the other clause are.

  • The income tax that the government takes from the public goes on the maintenance and development of transportation, the NHS, and the education system. Your tax amount all depends on your income. And the tax on foreign income depends on that as well. The only difference is that the amount that will be deducted is just from your UK-based income, unlike for the residents of the UK.
  • The income tax in the UK for foreigners, or the tax in general, falls under HMRC. According to the tax, payment, and customs authority, UK residents have to pay for the tax regarding their income on a worldwide basis. But everyone’s tax is derived from various sources of income. This is because the employment of people – resident or non-resident – varies. Many have regular employment. Then some people are self-employed, like the freelancers, and then we have people who run businesses. We have unemployed people as well. So the income varies as well. For the different types of employment, we have different forms of taxes. Even the UK tax on foreign income.

If you are a UK resident working abroad, you will have to pay the income worldwide. There has been a double tax treaty with over 130 countries to the United Kingdom.

These are some points to remember if you are thinking of coming to the UK to live and work or are already living and working but unfamiliar with the law. It is better to know about things like taxes and other country government laws before moving there. It helps a lot in times of necessity.

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