Do British Expats Have to Submit a UK Tax Return?

For British citizens and residents living abroad, understanding UK tax obligations is crucial. Many expats assume that once they leave the UK, they are no longer required to deal with HM Revenue & Customs (HMRC). However, in some cases, expats still need to submit a UK tax return, depending on their income sources and tax residency status.

Understanding UK Tax Residency

The primary factor in determining whether an expat must file a UK tax return is their tax residency status. The UK operates under a Statutory Residence Test (SRT), which assesses factors like:

• The number of days spent in the UK
• Ties to the UK, such as family, property, or business interests
• Work patterns in the UK

Expats who remain UK tax residents must report their worldwide income to HMRC, whereas non-residents only need to declare UK-sourced income.

Who Needs to Submit a UK Tax Return?

Expats may need to file a UK Self Assessment tax return (SA100) if they:

1. Have UK Income

Non-residents must declare UK-sourced income, including:
o Rental income from UK property
o UK-based employment income
o Self-employed earnings from UK clients
o UK pensions or investment income

2. Meet High-Income Thresholds

If an expat earns over £100,000 from UK sources, they must submit a tax return, even if tax has already been deducted.

3. Have Capital Gains in the UK

Selling UK property or certain UK assets may trigger Capital Gains Tax (CGT), requiring a tax return submission.

4. Claim Tax Reliefs or Refunds

Expats eligible for tax reliefs, such as claiming the UK personal allowance under a double taxation treaty, often need to file a tax return to receive refunds.

5. Are Self-Employed in the UK

Expats running a UK business, even if they live abroad, must report their earnings.

What If You Are a Non-Resident?

Expats classified as non-residents are usually only taxed on UK income. If all UK tax is already deducted at source (e.g., through PAYE for employment or withholding tax on interest and dividends), a tax return may not be necessary. However, those earning rental income or making capital gains will likely need to report them.
Non-residents may also need to complete a Non-Resident Landlord Scheme (NRLS) form if renting out UK property.

Double Taxation Agreements (DTAs)

The UK has double taxation agreements with many countries to prevent individuals from being taxed twice on the same income. Expats may need to submit a UK tax return to claim relief under a treaty, ensuring they do not overpay tax in both jurisdictions.

How to File a UK Tax Return from Abroad

Expats can submit their Self Assessment online via the HMRC website or by post. Deadlines include:

• 31 October (paper returns)
• 31 January (online returns)

Failing to submit a required tax return can result in penalties, so it’s crucial to comply with HMRC rules.

Conclusion

While some expats may not need to file a UK tax return, those with UK income, property, or business ties might still have obligations. Checking tax residency status and seeking advice from a tax professional can help expats navigate UK tax rules efficiently.