If you move to the UK for work, it is important to understand what taxes you may need to pay. Many people assume that taxes depend on nationality, but in the UK the main factor is whether you are resident and earning income here.
Here is a simple overview of the taxes you can expect when working in the UK as someone from abroad.
Income tax on your salary
If you work in the UK, your employment income is normally subject to UK income tax. Most employees pay tax through the PAYE system, meaning tax is deducted automatically from your wages before you receive them.
The amount of income tax you pay depends on your earnings and the UK tax bands.
National Insurance contributions
In addition to income tax, most workers in the UK also pay National Insurance. These contributions help fund benefits such as the State Pension and healthcare.
National Insurance is usually deducted alongside income tax through payroll.
Tax residency matters
Your UK tax position depends heavily on whether you are considered a UK tax resident. If you are resident in the UK, you may also need to declare foreign income, such as overseas investments, rental income, or income from workabroad.
Residency is determined under the Statutory Residence Test, mainly based on how much time you spend in the UK and your personal ties.
Double taxation relief
If you still have income from another country, you may worry about being taxed twice. The UK has double taxation agreements with many countries, which can allow you to claim relief so the same income is not taxed in both places.
Self employed workers
If you work in the UK as a freelancer or contractor, you will normally need to register for Self Assessment and pay income tax and National Insurance directly to HMRC.
Conclusion
If you come from abroad and work in the UK, you should expect to pay income tax and National Insurance on your UK earnings. Depending on your residency status, you may also have reporting obligations for foreign income.
Getting professional advice early can help you stay compliant and avoid unexpected tax bills.
If you would like to book a free introductory online call, please contact us at info@schoolgateaccounts.co.uk
