Hiring expatriates in the United Kingdom 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. 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 expat tax guide for the United Kingdom, or check out our brief infographic summary below.
Overview of key facts related to expats 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.
An individual is considered a tax resident in the United Kingdom if:
Tax rate for annual taxable income up to GBP 12,570
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
The rate of social security contributions paid by the employer in the United Kingdom is:
Up to GBP 9,100 per tax year
From GBP 9,101 per tax year
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.
The deadline for submission of the tax return will be on the 31st of January
