It is a deal between two countries not to tax each other twice (DTA). It keeps you from having to pay tax on the same income twice. You don’t have to pay extra tax on the same income if both countries have a Double Taxation Agreement. However, you may still have to make a tax report in both countries. Here is a list of the current tax treaties that the UK has with other countries.
I live in the UK but make money in other countries
- Your entire income will be taxed by HMRC. On your UK Self Assessment, you need to list both your UK and abroad income.
- If you don’t have a DTA and have already paid tax on your income from outside the UK, you have to pay tax again in the UK.
- You can get back the foreign income tax you paid with a DTA when you file your UK Self Assessment tax return.
I don’t live in the UK, but I make money there
You need to fill out a UK Self Assessment.
Use only UK-earned income and only pay tax on that?
- You can often get back the UK tax you paid on income you made in another country with a DTA.
- The “Remittance basis” of taxes lets you stay a non-resident if you want to. What you earn in the UK will still be taxed in the UK, but what you earn abroad will be taxed in a different country.
Tax-wise, I live in two countries, right?
- You should look at the DTA between that country and the UK.
- Make sure you don’t pay tax more than once by reading the rules.
Take a look at our map to see how much tax each country charges:
