If you come to study in the UK

1:Overview 2:Paying tax on foreign income
3:UK residence and tax 4:Foreign income that’s taxed differently
5:If you come to study in the UK 6:If you come to study in the UK
7:’Non-domiciled’ residents

Foreign students usually don’t pay UK tax on foreign income or gains, as long as they’re used for course fees or living costs like:

  • food
  • rent
  • bills
  • study materials

Check that the country your income’s from has a ‘double-taxation agreement’ that covers students.

HM Revenue and Customs (HMRC) may ask you to account for your living costs if they’re more than £15,000 in a tax year (excluding course fees). The tax year is from 6 April to 5 April the following year.

When you need to pay tax

You may need to pay tax on your foreign income in the normal way if you:

  • are from a country without a double-taxation agreement for students
  • have other income that you don’t bring to the UK
  • bring it to the UK and spend it on things other than living costs and course fees
  • plan to stay in the UK as your permanent home (‘domicile’)

If you work in the UK

Some double-taxation agreements mean you don’t pay UK tax on your income if you work while you’re a student.

If your country doesn’t have an agreement like this, you have to pay tax in the same way as others who come to live in the UK.

Posted on: 13th December 2016, by : ICS Legal