UK Tax System for Expats in London: What You Need to Know
Understand UK tax rules for expats in London: residency, income tax, foreign income, and how to avoid overpaying. Essential guide for anyone moving to the UK.
Non-Resident Tax London: What You Need to Know About UK Tax Rules
When you earn money in London but don’t live in the UK, you still might owe non-resident tax, tax owed by people who live outside the UK but generate income within it. Also known as UK non-resident income tax, this isn’t about where you sleep—it’s about where your money comes from. The UK doesn’t tax your global income if you’re not a resident, but it does tax what you make here: rent from a London flat, wages from a local job, or even profits from selling property in the city.
Tax residency, a legal status that determines whether you’re taxed on worldwide income or just UK earnings. Also known as UK tax residency status, it’s not about how many days you visit—it’s about the rules the HMRC uses to decide if you’re tied to the UK. If you spend more than 183 days here in a tax year, you’re likely a resident. But even if you’re here for just 40 days and work, you might still owe tax on that income. That’s why non-resident income tax, the tax applied to earnings generated in the UK by people who don’t live here. Also known as UK non-resident earnings tax, it’s not optional—it’s enforced through employers, letting agents, or banks that report payments to HMRC. If you rent out a flat in Shoreditch or get paid by a London company, that income is in the system.
Many people assume if they’re not a citizen or don’t live here full-time, they’re off the hook. But that’s not true. A teacher from Canada working a summer course in Camden, a consultant from Germany invoicing a London firm, or a remote worker from Brazil paid into a UK bank account—all can trigger tax obligations. The UK doesn’t care if you’re from Brazil, Japan, or Nigeria. It cares if the money came from here.
You’re not alone in this. Thousands of non-residents file UK tax returns every year. Some pay nothing because their income is below the threshold. Others get refunds because they paid too much upfront. The key is knowing what counts as UK income, what deductions you can claim, and how to file correctly. You don’t need a fancy accountant—just the right info.
Below, you’ll find real guides on what non-residents actually pay in London, how to avoid common mistakes, and what to do if you’re overcharged or unsure. No fluff. No jargon. Just what works for people who earn in the UK but live elsewhere.