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Horizon UK Tax Solutions

Do I pay UK tax if I work abroad for a UK employer?

Answered by Jordan Onraet-Wells, Founder & Chartered Tax Adviser (CTA). Published 9 August 2026. Last reviewed 9 August 2026.

The short answer

It depends on your residence, not on where your employer is. If you stay UK resident under the Statutory Residence Test, UK tax continues as normal on your salary. If you genuinely move, become non-resident and perform your duties wholly outside the UK, those earnings fall outside UK tax and HMRC can issue an NT (no tax) code so your employer pays you gross. Until that code arrives, PAYE keeps being deducted and is refunded later, and any duties you still perform physically in the UK generally remain UK-taxable.

  • Your residence position under the Statutory Residence Test decides everything; the employer's location does not by itself keep you in UK tax.
  • An NT code stops UK PAYE for a non-resident with wholly overseas duties, and it is normally operated cumulatively, so tax over-deducted since departure is refunded through the payroll.
  • Tell HMRC you have left using the online P85 service, unless you are filing a Self Assessment return for the departure year, in which case the return does the job.
  • Split-year treatment (Case 1, starting full-time work overseas) can make you non-resident from the day after departure rather than the end of the tax year.
  • National Insurance runs on separate rules: in a non-agreement country such as the UAE, the 52-week rule can keep UK Class 1 NI running for your first year abroad.

Fixed-fee service

Non-Resident and Expat Tax Return

£750 fixed

A Chartered Tax Adviser prepares and files your UK return for the year you leave, SA109 residence pages and any split-year claim included, and the non-resident returns that follow if you keep UK income. That is the total, agreed before any work starts. Never hourly. A return with several income streams, investments or structures is the Complex Personal Tax Return, from £950, and we tell you which fee applies before you commit.

  • SA109 residence pages and the split-year claim for your departure year
  • UK rental income, employment, pensions and gains on the right pages
  • Personal Allowance claimed as a non-resident where you qualify
  • Filed online as your agent, so the 31 January deadline stays open
Tax returns for expats

Residence decides who taxes your salary

Nothing in UK tax law stops you being employed by a UK company while living abroad; what changes is who gets to tax the pay. Start with the Statutory Residence Test. If you go for a few months and stay UK resident, UK PAYE carries on and the treaty usually protects you from host-country tax. If you genuinely move, become non-resident and do all your work abroad, the taxing rights shift to your new country. Beware the 183-day myth in both directions: being out of the UK for 183 days does not make you automatically non-resident, and staying under 183 days in the host country only avoids tax there if all three treaty conditions are met, including that your pay is not borne by a permanent establishment your employer has there.

The sequence: P85, NT code, split year

There is an order to getting the UK side right. First, tell HMRC you have left: the online P85 after departure, or, if you are filing a Self Assessment return for the departure year, the return with its residence pages does the same job, and GOV.UK says not to do both. Second, once non-residence and wholly overseas duties are clear, HMRC can issue the NT code; it is normally operated cumulatively, so when it lands the payroll automatically refunds tax over-deducted since you left. Third, the departure year itself: by default you are UK resident for the whole tax year you leave, but split-year treatment under Case 1, starting full-time work overseas, can split the year at your departure date so overseas-duty earnings after that fall outside UK tax. Until all this is settled, PAYE money is delayed, not lost.

National Insurance is a separate question

An NT code stops tax, not National Insurance. In the EU, Gibraltar, Iceland, Liechtenstein, Norway and Switzerland, and in agreement countries such as the USA, Canada and Japan, certificates of coverage decide which system you pay into. In non-agreement countries the 52-week rule can keep you and your employer paying UK Class 1 NI for the first year abroad if the move is temporary and the other conditions are met, sometimes alongside local social charges. Once compulsory NI stops, consider voluntary contributions from abroad to protect your State Pension, noting that from 2026/27 only Class 3 is available for new periods abroad. Your employer has its own list too: section 690 notifications for mixed UK and overseas duties, host-country payroll and permanent establishment risk. Horizon coordinates the P85, NT code, treaty position and departure-year return on fixed fees agreed upfront; book a free clarity call at /book before you fly.

This is general information for the 2026/27 UK tax year, not personal tax advice; speak to a Chartered Tax Adviser about your own position.

Deadline 31 January 2027

Filing a 2025/26 return?

A Chartered Tax Adviser prepares and files it for you, including the pages HMRC's free online service cannot handle. Fixed fees from £450, non-resident and expat returns £750 fixed, agreed before any work starts.

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Applies to you? Ask us directly

A page can only take you so far. Book a free 30-minute clarity call with Jordan, a Chartered Tax Adviser, and get this answered for your exact situation, on a fixed fee agreed upfront.

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2025/26 tax returns due 31 January
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