UK personal tax returns for inbound individuals
Most inbound individuals coming to the UK benefit from special tax advantages not available to UK residents. It is important for individuals to structure their tax affairs correctly from the outset - and ideally even before they come to the UK.
Warrener Stewart can assist with inbound tax services and will address key questions that all individuals face. The key questions include:
- What are the important deadline dates?
- What income/gains will be taxed in the UK?
- Do I need to file a tax return?
- What if I have overseas income and gains?
Contact us to discuss how we can manage your compliance obligations.
Checklist for Action
These are the key action points an individual needs to consider when coming to the UK.
| Pe- Arrival Planning and Financial Structuring |
| Getting the Date of Arrival in the UK Correct/Departure Date from Home Country |
| Register for UK Taxes and Obtain Your Unique Tax Reference |
| Apply for a National Insurance number (UK Social Security) |
| Register for Self-Employment (if applicable) |
| Appoint a UK Accountant |
Domicile and Remittances Basis
Being an inbound individual can open up the possibility for many tax advantages not normally available for UK tax payers. Before assessing the possibilities it is important to distinguish your domicile status and whether you are eligible for the remittance basis.
Domicile
A person’s domicile status affects their tax position. Broadly speaking a domicile is where you originate from. For most people this is obvious. Provided that you do not want to choose the UK as your permanent home you are regarded as a non-domicile. If you have any questions regarding your domicile status people contact Warrener Stewart.
For example: A person can take up residence in London but intend at some point in time to return to their place of birth. Therefore, such person is not domicile of the UK but to their original country as they intend to return at some point on time.
Remittance Basis Charge
A remittance basis is a special provision for people who are UK resident but not domiciled to the UK. Individuals with a foreign source of income or capital gains will not have to pay UK tax on in the given tax year if they are unremitted and they meet all of the UK provisions
Individuals who are UK domiciled DO NOT have the opportunity to use the remittance basis.
Below is a chart of how UK and Foreign income is taxed under each status:
| |
UK Income |
Foreign Income |
| Resident & Domiciled |
Taxed |
Taxed |
| Resident & Non-Dom |
Taxed |
Remittance basis is possible |
| Non-Resident |
Taxed |
Not taxed |
Capital and Income
In the UK you will be assessed on everything in the orange circle including the intersection.
FAQs
The most common questions we are asked about UK tax liability by inbound individuals:
Q: I only earn a salary (under PAYE), do I still have to file a UK Tax return?
A: It is strongly advisable to file a UK tax return, as your situation may change and it is important to establish both your domicile status and your date of arrival.
Q: How do I claim remittance basis?
A: In order to claim the remittance basis due you must file a UK tax return.
Q: I have been in the UK for almost a year now, how much will it cost to get up to date with my UK taxes?
A: It may not be as much as you think. Warrener Stewart provide a free initial consultation to discuss your position with you to help get your affairs in order (whether you decide to use our services or not). From this we will be able to provide you with a quote for the completion of you UK tax return, and any streamlined procedures as applicable.