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|
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:
- 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