UK Tax on Remote Work — Foreign Employer or Abroad
Frequently Asked Questions
If you are UK tax resident, yes — you are taxed on your worldwide income in the UK, including salary from a foreign employer. You must declare this on self-assessment and may receive credit for foreign tax paid.
The statutory residence test (SRT) determines whether you are UK resident. Key automatic tests: 183+ days in the UK in a tax year makes you UK resident; fewer than 16 days makes you non-resident (if previously resident).
Generally not, unless you become non-UK resident (by spending 183+ days abroad per tax year). Overseas workday relief can apply in limited circumstances if you are non-domiciled.
The UK has over 130 double tax treaties with other countries. These determine which country has the primary right to tax employment income and provide relief to prevent the same income being taxed twice.
On your self-assessment return, declare the foreign income and the tax paid abroad. You can credit the foreign tax against the UK tax due on that income (up to the UK tax amount — you can't use foreign tax to offset UK tax on other income).
You are responsible for paying UK tax via self-assessment. You may also need to pay Class 1 employee NIC directly to HMRC (via the Overseas Employer/Employee National Insurance procedure).
You can, but HMRC may treat you as an employee for tax purposes depending on the working arrangement (substitution rights, control, etc.). Being paid as self-employed when you're actually an employee is a risk.
Non-UK domiciled individuals who are UK resident can claim overseas workday relief (OWR) on employment income attributable to days worked outside the UK, in certain circumstances. This is a complex area.
Potentially yes, depending on the German-UK tax treaty. If you work in Germany for 183 days or more, Germany may have the primary right to tax. Below 183 days, the UK usually retains taxing rights if the employer is not a German entity.
If you become UK resident or non-resident partway through a tax year, split-year treatment can apply, meaning you only pay UK tax as a resident for the portion of the year when you were resident.
UK National Insurance contributions are needed to build state pension entitlement. If you work abroad and don't pay UK NIC, you may get gaps in your NIC record. Voluntary Class 2 or Class 3 contributions can fill gaps.
Since Brexit, the EU social security coordination rules no longer apply to UK nationals. You may pay social security in the country where you work. A-1 certificates (formerly E-101) are no longer available for UK nationals working in the EU.