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Expat tax in the United Kingdom: 2023 guide| eBook

May 3, 2023

Hiring expatriates in the UK or sending UK-based employees overseas involves a new set of obligations for employers. To ensure compliance with tax regulations, our team of experts has gathered essential information on cross-border employment and expat tax in the United Kingdom. This will provide you with a basic knowledge about tax residency, personal income tax, social security and health insurance contributions or penalties for non-compliance.

Download our guide on expat tax in the United Kingdom, or read more below.

Overview of key facts related to expat tax in the United Kingdom

Our local tax, payroll and labour law experts are here to help you – as an expat or an employer – to obtain essential expert advice, so that you can effectively address all the matters related to cross-border mobility in the United Kingdom and other locations globally.

Tax residency

An individual is considered a tax resident in the United Kingdom if:

If they have, or have had, a residence in the UK, for all or part of the year

If they spend at least 183 days in the UK during the tax year

If they work substantial number of hours in the UK

Tax rate

Tax rate for annual taxable income up to GBP 12,570


Tax period

Tax period runs from 6th April to 5th April each tax year

Tax rate for annual taxable income from GBP 12,571 to GBP 50,270

Tax rate for annual taxable income from GBP 50,271 to GBP 150,000

Tax rate for annual taxable income over GBP 150,000


Social security contributions

The rate of social security contributions paid by the employer in the United Kingdom is:

Up to GBP 9,100 per tax year


Health insurance contributions

In the United Kingdom, employers have the choice to provide health insurance to their employees. If an employer provides health insurance, the employee will be taxed on the benefit, either through the payroll or via the submission of a P11D at the end of the tax year.

From GBP 9,101 per tax year


Tax return filing

The deadline for submission of the tax return will be on the 31st of January.

Penalties related to tax

If you are required to submit a tax return and fail to meet the deadline for submitting it or paying your bill, you be a subject to a penalty. A late filing penalty of GBP 100 will be charged if your tax return is up to 3 months late and additional charges will apply if it’s later, or if you pay your tax bill late. Additionally, interest is also charged on late payments.

Penalties related to social security

If you fail to make payments of social security contributions in time, interest charges will be applied as a result of the delay.

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