skip to main content
Speak to a UK tax expert >

How to tell if you have to submit a UK tax return

Even if you haven't received a letter from HMRC, you may still have to complete a Self Assessment tax return in the UK. These six steps will help you understand whether you should be completing a UK tax return

Written by E4E Editor on 17 August 2022

While not all expats have to submit a tax return in the UK, a large proportion of British expats are required by HMRC to complete a tax return. Failure to do so could result in penalties and additional interest on late payments.

While the HMRC website has an online tool to assist people living in the UK determine whether they must submit a tax return in the UK, this was not created with expats in mind, either non-UK residents or foreigners living in the UK.

6 key criteria used to determine whether you need to submit a tax return

  • Are you considered a tax resident of the UK?
    While the Statutory Residence Test will determine if you are a tax resident of the UK or not, if you spent more than 183 days in the UK you will most likely be deemed a tax resident of the UK and therefore required to declare all your worldwide income to HMRC through a Self-Assessment tax return.
  • Do/did you receive any un-taxedincome from sources in the UK such as  rental income from a UK property?
    You are not considered a tax resident of the UK, but you received income from the UK (for example you are a non-resident landlord and have UK rental income, pensions, dividends, UK based employment) this will be subject to UK tax laws and it is likely you will be required to submit a tax return.
  • Do you have income from abroad that you need to pay tax on?
    If you are a UK tax resident, you are normally required to pay UK tax on your worldwide income. Therefore, if you received income from any non-UK source (for example a holiday rental, non-UK investments or non-UK employment) you are required to declare and pay tax on that income.
  • Are you a director of a UK registered company?
    If you are a director of a company registered in the UK, you will be required to submit a tax return – even if you are a non-resident of the UK.
  • Was your UK taxable income over £100,000?
  • Have you sold a UK property, shares in a UK registered company or similar that you need to pay capital gains tax on?

If you answered yes to any of the above criteria, you will probably have to submit a tax return in the UK, regardless of whether you are British or a foreign national. If you are unsure about the answer to any of the above questions, it is possible that you will be required to submit a tax return. However, in every case it is essential if you are unsure that you seek advice from a qualified tax consultant who both understands the rules around expat tax affairs but can also assist with the completion and submission of UK tax return.

It is worth noting that in the UK it is the taxpayer who is obliged to register for and submit a tax return, you cannot rely on HMRC to contact you and request a tax return is filed.

While submitting a tax return does not necessarily mean that you owe tax in the UK, it is important that a return is filed if you are obliged to complete one to avoid any late filing penalties and fines.

Submitting a tax return will ensure you claim any appropriate reliefs you are entitled to i.e. tax treaty relief if there is a double taxation agreement in place, which will help you avoid double taxation.

For more information please read our article which details how to complete a UK Self Assessment tax return as an expat, alternatively request a free consultation detailed below to get a better understanding of what you need to do next to avoid potential penalties.

 

Share your experiences of the Cost of Living Crisis

The cost of living crisis is gripping people around the world, and among the most affected are expats who are exposed to significant currency exchange fluctuations, rising interest rates and unprecedented inflation.

We are conducting an anonymous Expat Cost of Living Survey and are seeking the views and experiences of expats around the world, especially those with connections to the UK. It takes no more than 3 minutes to complete.

As a thank you, we are offering all participants the opportunity to win one of three £100 Amazon vouchers.

Start the survey >

Testimonials from people who have used our UK tax introduction service

A really useful service, both prompt and precise.

Gareth A. United Arab Emirates, Uk Tax Return

The service was excellent. The work I needed done was complicated and beyond me. It was completed over the weekend before Christmas, and I received the first rebate from HMRC on Jan 2nd. I cannot recommend the consultant too highly!

Peter B. Spain, UK Tax Return

Quick and first consultation free without commitment in case you didn’t find it useful. Avoids having to search for experts online that you may/may not trust.

Leila G. Germany, Double Tax Treaty