Accounting and Tax Essentials for Global Talent and Innovator Founder Visa Holders in the UK
Discover key UK tax and accounting insights for Global Talent and Innovator Founder visa holders - including the 4-Year Foreign Income and Gains (FIG) regime, R&D tax relief, and new HMRC reforms effective from April 2025.
Securing a UK visa is an exciting milestone - whether you’ve arrived as a Global Talent professional or an Innovator Founder entrepreneur. Alongside new opportunities come new financial responsibilities. Understanding how the UK tax system interacts with your visa route is essential to protect your income, stay compliant, and plan for long-term success.
At Schoolgate Accounting Services Ltd, our Chartered Accountants and Tax Advisers specialise in helping visa holders define their UK tax residence, assess their eligibility for HMRC’s new 4-Year Foreign Income and Gains (FIG) regime, and implement effective international tax planning tailored to their personal and business goals.
Why This Matters in 2025
The UK is preparing to transition from 6 April 2025 to a residence-based tax system, replacing the long-standing domicile and remittance-basis framework.
The changes introduce:
- A 4-Year FIG regime for new UK residents (after 10 consecutive years of non-residence), providing relief on foreign income and gains for the first four tax years.
- The abolition of the remittance basis from the 2025/26 tax year.
- A Temporary Repatriation Facility (TRF) (2025–2028) allowing previous remittance-basis users to bring overseas funds to the UK at a reduced rate (12–15 %).
- A new residence-based Inheritance Tax (IHT) system, applying to worldwide assets once an individual has been UK-resident for 10 of the previous 20 tax years.
For internationally mobile professionals and founders, advance planning now - ahead of the April 2025 implementation - is key to minimising tax exposure and ensuring compliance.
1. Determining Your UK Tax Residence
Your visa type does not automatically determine your UK tax position - your tax residence status, assessed through the Statutory Residence Test (SRT), does. The SRT looks at how many days you spend in the UK and your connections (home, family, work).
Recommendation: Keep comprehensive records of UK travel, accommodation and overseas income from your first day in the UK. We can help confirm your residence status and ensure accurate HMRC reporting.
2. Setting Up or Joining a Business as a Global Talent or Innovator Founder
Many Global Talent visa holders work as consultants or non-executive directors, while Innovator Founders often establish new UK companies.
Key accounting steps:
- Company Formation: Register with Companies House and HMRC. Choose a structure (limited company or LLP) that fits your tax and commercial position.
- Accounting Systems: Use UK-compliant software (Xero, QuickBooks, Sage).
- Corporation Tax: 25 % for profits over £250,000 (2025 rate).
- PAYE & Payroll: Directors and employees must register for PAYE.
- VAT: Registration required when taxable turnover exceeds £90,000 (2025 threshold).
Recommendation: Even if your Innovator business is pre-revenue, keep formal accounts from the start - endorsement bodies and UKVI may review them during renewal.
3. Planning Personal Income and Remuneration in the UK
Founders and professionals often receive income from employment, dividends, consultancy, or overseas sources. Effective structuring ensures tax efficiency and visa compliance.
- Salary vs Dividends: Balancing the two can reduce Income Tax and NIC.
- Overseas Income: Once UK-resident, foreign earnings may be taxable unless covered by the FIG regime.
- Pension Contributions: Lower taxable income and support settlement plans.
- Overseas Workday Relief (OWR): Will remain available for up to four years under the new residence-based rules, offering relief on overseas employment income (even if paid to a UK account).
4. Claiming R&D Tax Relief for Innovation Activities
If your business develops new software, algorithms, or digital tools, you may qualify for R&D Tax Relief under HMRC’s merged scheme (effective from April 2024).
This can provide cash credits or tax reductions on eligible UK innovation expenditure, including:
- staff salaries,
- contractor and subcontractor fees,
- cloud computing and data costs.
Recommendation: Keep detailed project documentation, timesheets, and invoices. HMRC scrutiny of R&D claims has increased, and evidence-based submissions are essential.
5. Compliance Calendar
6. Cross-Border Tax Planning
Many visa holders maintain global income streams or assets. Common considerations include:
-Double Taxation Treaties (DTAs): The UK has treaties with over 130 countries - correct use prevents taxation in both jurisdictions.
-Overseas Shareholdings or Crypto Assets: Disposals while UK-resident may create Capital Gains Tax (CGT) liabilities.
-Foreign Currency Transfers Under the FIG regime, foreign income earned within the four-year period can be remitted to the UK tax-free. Afterwards, remittances may be taxable.
-Trust Planning: Existing offshore trusts should be reviewed before the residence-based IHT rules apply.
Recommendation: Before moving significant funds to the UK, obtain specialist pre-transfer advice to structure transactions efficiently and avoid unexpected liabilities.
7. Planning for Settlement and Long-Term Success
Both the Global Talent and Innovator Founder visa routes can lead to Indefinite Leave to Remain (ILR) after three to five years.
Once settled, your worldwide income and gains will generally become taxable in the UK.
Early planning allows you to:
- Restructure overseas holdings pre-settlement.
- Set up tax-efficient pension and investment vehicles.
- Align succession and family wealth planning with UK residency goals.
8. How Schoolgate Accounting Services Can Help
At Schoolgate Accounting Services Ltd, we assist Global Talent and Innovator Founder visa holders through every stage of their UK financial journey.
Our services include:
- UK residence and FIG eligibility reviews
- Company incorporation and accounting setup
- R&D Tax Credit claim preparation
- Full accounting, payroll and VAT compliance
- Cross-border and international tax structuring
- Long-term wealth and settlement planning
Contact us today to book a consultation and learn how we can help turn your visa success into lasting financial success at info@schoolgateaccounts.co.uk or +447825308400.
