Last updated: 16 October 2026
Step 1: Check your residence status
The first step is to work out whether you were UK resident for the tax year, using the statutory residence test. If you were away for four months and in the UK for the rest of the year, you were almost certainly in the UK for 183 days or more. That makes you automatically UK resident for the whole tax year. Split year treatment is unlikely to apply to a short trip.
Step 2: UK residents are taxed on worldwide income
As a UK resident, you pay UK tax on your income from anywhere in the world, including pay for work done overseas. You may also have paid tax in the country where you worked. Double taxation relief usually stops you paying tax twice on the same income.
How to report it
| Your situation | What to do on your Self Assessment return |
| Employed by a UK employer and paid through UK payroll while abroad | Usually already taxed through PAYE; report as normal UK employment income |
| Employed by an overseas employer | Report on the employment pages and the foreign pages, and claim foreign tax credit relief |
| Self-employed and working abroad | Include the income in your self-employment profits and claim foreign tax credit relief |
| Foreign tax was deducted | Claim relief for the lower of the foreign tax and the UK tax on that income |
Foreign tax credit relief
You can claim relief for foreign tax paid on the same income, up to the amount of UK tax due on it. If the other country’s tax was higher than the UK tax, the excess is not refunded by HMRC. If a tax treaty says the income should only be taxed in the UK, you may need to claim a refund from the other country instead.
Example
Amy, a UK resident software consultant, spent four months on a contract in Germany in 2026/27 and earned £24,000 there. She paid £5,000 of German tax. UK tax on that income at her rate is £4,800. On her UK return she declares the £24,000 and claims £4,800 of foreign tax credit relief. The extra £200 of German tax is not refunded by HMRC.
National Insurance
For short postings within the EU, a certificate can keep you in the UK National Insurance system. Outside the EU, social security agreements may apply. Without one, you may have to pay contributions in the other country.
Converting currency
Convert foreign income and tax into sterling using HMRC’s exchange rates or the rate on the day of payment. Be consistent and keep a note of the rates used.
When split year treatment can help
Split year treatment can apply if you leave the UK to work full-time abroad for at least a whole tax year, or arrive from abroad to start living in the UK. It does not apply to a four-month assignment within a year in which you stay UK resident.
Records to keep
Keep foreign payslips, tax certificates, contracts and travel dates. HMRC can ask for evidence of foreign tax paid.
Frequently asked questions
Do I need to file a tax return?
Usually yes, if you have foreign income that has not been taxed through UK payroll.
Can I claim travel costs to the overseas job?
If it is a temporary workplace, travel and subsistence may be deductible.
What if I worked abroad for a UK employer?
PAYE normally continues; check whether foreign tax was also due.
Does the 183-day rule apply in the other country too?
Many treaties use a 183-day test to decide which country can tax employment income.
Related: double tax treaties, non-resident status and changing jobs and split-year treatment.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with foreign income on your tax return. See our personal tax accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
