I normally live overseas. What do I need to know about the UK tax system?
The first thing you need to know is that the UK has a tax system that attempts to not discriminate against any particular groups of people. You should find your tax situation similar to most UK students.
Much guidance about the general tax system is available from HM Revenue & Customs (HMRC - the UK tax authorities). This information is often not specifically aimed at students and especially not at international students, so you should find the following information helpful. You may also wish to consult the LITRG Migrants guide and factsheets. There is some limited guidance for international students studying in the UK.
Broadly, the UK system aims to make you liable to UK taxation if you are resident in the UK. The extent to which you interact with the tax system will depend on your personal circumstances. You should normally expect to have to pay tax on any kind of income arising from working, whether for yourself or for an employer, and on all investment income: for example, bank interest or property income. Where you are living within the UK can affect what tax you pay as from 6 April 2016 Scotland has the power to set a single rate of Scottish Income tax.
Once you have sorted out what income you have that may be liable to UK taxation, you can then use the other areas of this website to help you claim a refund, if one is due, or to minimise the tax you pay as you go along. You may find it helpful to look at the tax essentials section of this website.
In the subsequent pages we cover:
- Am I resident if my stay is short?
- Do international students pay UK tax?
- Can I get a VAT refund?
- Can I work while studying in the UK?
- Do students pay National Insurance contributions?
- What happens when I leave the UK?
- Residence and domicile