What “Non-Resident” Means for UK Tax
- If you don’t meet the Statutory Residence Test (SRT) in the UK, you are generally considered a non-resident for tax purposes.
- As a non-resident, your UK tax liability is limited to UK-sourced income and gains, not your worldwide income or profits.
- Foreign income and gains (outside the UK) are usually outside the scope of UK tax for non-residents.
UK Income Types Taxable to Non-Residents
Even if you are non-resident, certain UK income streams remain taxable:
| Type of Income / Gain | Comments |
|---|---|
| UK property rental income | Profits from letting property located in the UK are taxed. |
| Savings interest in UK accounts | Interest earned from UK bank accounts may be taxed. |
| Dividends from UK companies | Dividend income from UK companies is within scope. |
| Profits of UK business / trade | If you carry on business in the UK through a “permanent establishment”, those profits can be taxed. |
| Capital gains on UK property or land | When non-residents dispose of UK land / property, CGT can apply. |
Allowances & Special Rules for Non-Residents
- Non-residents generally do not get the UK personal allowance unless they meet specific eligibility (e.g. UK/EEA nationals, or certain treaty provisions).
- The concept of “disregarded income” applies: with certain incomes like UK dividends and interest, your UK tax is limited to the tax already deducted at source.
- Double tax treaties may reduce or eliminate UK tax on certain types of UK income for non-residents.
Changes & Context to Watch (2025 Onwards)
- The UK is abolishing the non-dom (non-domicile) tax regime starting April 2025, which historically allowed some UK residents to avoid tax on foreign income unless remitted to the UK.
- After that change, individuals who become UK residents may face tax on worldwide income, even if their income is held outside the UK.
How Dogpay Can Assist Non-Residents with UK Taxed Income
When you have UK-sourced income or gains and are non-resident, Dogpay can help with the financial flow, documentation, and compliance:
- Receipts of UK Income / Rental Receipts If you receive UK rental income or dividends, Dogpay can help you manage the remittance to your home country or other accounts, with clear currency conversion and minimal hidden costs.
- Tax Payment / Withholding Obligations In some cases, UK tax must be paid at source or withheld. Dogpay can assist with cross-border remittance of the net or gross amounts to HMRC or tax representatives.
- Cross-Border Expense Payments If you incur expenses related to UK property or business (maintenance, agents, legal services), those may be payable abroad — Dogpay helps you pay them reliably and transparently.
- Documentation & Audit Trail Dogpay provides exportable receipts, timestamped logs, and clean records which are valuable if HMRC audits your non-resident UK income or you need to reconcile tax returns.
- Minimizing FX & Bank Leakage Conventional international transfers carry hidden fees, spreads, or intermediary costs. Dogpay reduces “leakage,” so more of your UK-derived income stays in your hands.
