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Sam, Accountant
Category: Tax
Satisfied Customers: 14154
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am about to start a job based overseas, for a foreign employer,

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I am about to start a job based overseas, for a foreign employer, and I will start paying PAYE tax in that country. I will be living in the UK. How do I avoid paying double tax or not getting the HMRC on my case for not paying tax in the UK?
Thanks for your question
You will have to pay tax in the UK regardless, as you will remain resident in the UK and so retain a UK tax position.
However there are two ways this can be managed so you do not suffer tax twice
1) Operate PAYE and deduct the UK tax and National Insurance under the Direct Payment scheme - so in essence you act as proxy employer on your own pay, but you would then need to ensure that foreign tax was not deducted due to you NOT being resident in the country from which you are being paid
Link here for you to do this
2)Just advise HMRC that this employment has begun, and complete a self assessment tax return after each tax year end, on which you would declare the income and the foreign tax suffered.
This would then be offset against the UK tax position, and you would only have UK tax pat, if the foreign tax was insufficient under the UK tax rates.
Link here for you to register for self assessment
But either way you will remain a UK taxpayer, and if you choose option 2) just note you may wish to pay voluntary National Insurance contributions to keep your state pension and other state benefits in tact.
I have added a link here for voluntary contributions and how to set these up.
Let me know if you have any follow up questions, and I would be happy to answer them.
Customer: replied 3 years ago.

Thanks. If the country is Norway, and I will be paying more tax than in the UK, I suppose Option 2 will be the most hassle free (even if I end up paying a higher tax)

With Option 2, when do I need to submit a self assessment form?


Thanks for your response and your follow up question.
Your first self assessment tax return will be due after 05/04/2015 (if you register once this employment begins then HMRC send you the tax return after 05/04/2015) and every year after that (always after 5th April)
Although initially HMRC will send you a paper return you can arrange to file this online, once they have sent you a 10 digit unique taxpayer reference (under which your tax affairs will be dealt with)
I have added a link to get set up to file online - so you have this for future reference
But if you need any help with this OR the completion of the self assessment tax return - which will require you to fill in the foreign income page and employment page - then please do come back to Just Answer, and if you prefer, you can always ask for me Sam in your opening post - and the other experts will know to leave this for me to answer.
Let me know if you have any further questions, but, if in the meantime you would be kind enough to rate the level of service I have provided, it would be appreciated, as this ensures I am credited for my time.
Have a great weekend and good luck with this new job!
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