Living Abroad? Here’s How to Master Your Tax Return as a Non Resident

Living abroad can be an incredible experience—new cultures, languages, and opportunities. But when tax season rolls around, it can also mean confusion, paperwork, and frustration. If you're earning income from the UK while living overseas, you're likely required to complete a tax return non resident. This blog will walk you through everything you need to know to handle your taxes from abroad.

Whether you’re working remotely, running a business, investing in UK property, or involved in a partnership, understanding how to file your non resident UK tax return is crucial. We'll also explain how to file partnership tax return forms if you’re involved in joint ventures. The process doesn’t have to be complicated—with the right information, you can stay compliant and avoid costly penalties.

Who Needs to File a Tax Return as a Non Resident?

If you no longer live in the UK but still receive UK income, you may be required to complete a tax return non resident. HMRC considers someone a non-resident if they don’t meet the UK residency test—typically based on the number of days spent in the UK, among other factors.

You’ll likely need to submit a non resident UK tax return if you:

• Own rental property in the UK

• Receive dividends or interest from UK investments

• Run a UK-based business from abroad

• Are in a partnership involving UK income

• Previously lived in the UK and still have economic ties

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Understanding the SA109 Form

When completing your tax return non resident, one of the most critical components is the SA109 form. This form helps HMRC determine your residency status and whether your income should be taxed in the UK.

When to use SA109:

• You claim non-residence for tax purposes

• You want to claim split-year treatment

• You're eligible for double taxation relief

HMRC doesn’t currently support online filing of SA109 via their portal, so you’ll need to use third-party software or submit a paper return.

Step-by-Step Guide to Filing a Non Resident UK Tax Return

Filing your non resident UK tax return from overseas may seem daunting, but with these steps, you can make the process smoother.

1. Register with HMRC

• If you haven't already, register for Self Assessment. You’ll receive a Unique Taxpayer Reference (UTR) by post, which you’ll need to file.

2. Choose your method

• Use approved tax software that supports SA109, or file by paper. Filing online is faster and easier but requires software for SA109.

3. Collect your documents

• Rental income statements

• Bank statements

• Partnership profit and loss if applicable

• Previous tax returns

• Evidence for double tax relief claims

4. Fill in your Self Assessment form

• Include all relevant UK income

• Declare foreign income if it affects your UK tax position

• Attach SA109 to confirm your non-resident status

5. Submit your return

• Deadline is 31st January for online filing and 31st October for paper

Income Types You Must Declare as a Non Resident

Even if you’re living abroad, UK-sourced income may still be taxable. When completing a tax return non resident, be sure to declare:

• Rental income from UK property

• Dividends from UK companies

• UK pensions

• Interest from UK bank accounts (in some cases)

• Profits from a UK partnership

• Self-employed income from UK clients

Note: Certain types of income, such as foreign earnings or gains, may not be taxable in the UK if you qualify under the double taxation agreement with your country of residence.

How to File a Partnership Tax Return from Abroad

If you're involved in a UK-based partnership, you’ll need to file partnership tax return documents annually—even if you live outside the UK.

Here’s how it works:

1. Partnership Tax Return (SA800)

• The partnership itself must complete SA800, showing total income and expenses.

2. Partner’s Tax Return (SA104)

• Each partner (including non-residents) must complete SA104 as part of their individual return, showing their share of profits/losses.

3. Combine with SA109

• If you’re non-resident, include SA109 to show you live abroad and how the partnership income relates to UK taxes.

Even if your share is small or the business operates largely outside the UK, you still need to file partnership tax return forms if there's UK-based income.

Avoiding Double Taxation

One of the biggest worries for non-residents is paying tax twice—once in the UK and again in their country of residence. Thankfully, the UK has tax treaties with many countries to avoid this.

When you file a tax return non resident, you can often:

• Claim tax credits for foreign taxes paid

• Apply for tax relief under a double taxation agreement

• Offset UK tax against foreign liabilities

This is handled via the SA109 and relevant sections in your return. Keep records of taxes paid abroad in case HMRC asks for verification.

Common Mistakes to Avoid When Filing a Non Resident Tax Return

To ensure your non resident UK tax return is accurate and penalty-free, watch out for these common pitfalls:

• Missing the SA109: This is essential for non-residents and must be attached even if you're filing online.

• Filing late: The deadline is 31st January. File early if you're abroad.

• Underreporting income: Declare all relevant UK income, even if it's small.

• Ignoring partnerships: You still need to file partnership tax return documents even if you live overseas.

• Not checking tax treaties: You might be entitled to relief—don’t miss out.

READ MORE - Affordable & Easy UK Tax Filing | Taxd

Digital Tools That Make Filing Easier

There’s no need to rely on paper forms or struggle with outdated tools. Here are some digital solutions for filing a tax return non resident:

• Taxd: Tailored for non-residents, supports SA109 and partnership filings.

• GoSimpleTax: User-friendly and ideal for freelancers and landlords.

• Untied: Mobile-first, perfect for digital nomads.

• FreeAgent (for partnerships): Handles SA800 and SA104 submissions.

Choose a platform that supports both SA109 and allows you to file partnership tax return forms if you’re part of a partnership.

Deadlines You Need to Remember

• Register for Self Assessment: 5th October

• Paper return deadline: 31st October

• Online return deadline: 31st January

• Payment deadline: 31st January

If you're submitting a tax return non resident, give yourself extra time for international post and software setup.

Conclusion

Living abroad doesn’t exempt you from UK tax responsibilities. Whether you own rental property, have investments, or need to file partnership tax return forms, you must submit a tax return non resident annually if you have UK income. By understanding what’s required, using the right tools, and planning ahead, you can handle your non resident UK tax return smoothly and avoid penalties or overpayments.

Start by registering early, gathering the right documents, and using tax software that supports SA109 and partnership forms. Once you've got the process down, tax season won't feel like such a burden—even from the other side of the world.

FAQs About Non Resident UK Tax Returns

Q1: Do I need to file a tax return if I live abroad? Yes, if you earn UK income, own property, or are in a partnership involving the UK, you need to file a tax return non resident.

Q2: Can I file a non resident UK tax return online? Yes, but you must use HMRC-approved tax software that supports SA109. The HMRC website alone won’t let you complete SA109 digitally.

Q3: How do I file partnership tax return documents if I’m overseas? The partnership files SA800, and you complete SA104 with your share. As a non-resident, also attach SA109 to your personal return.

Q4: What happens if I miss the SA109? HMRC may treat you as a UK resident and tax your worldwide income. Always include SA109 if you are a non-resident.

Q5: Is rental income from UK property taxable if I live abroad? Yes, UK rental income is taxable, and you must declare it in your tax return non resident.