Some people tax planning in Cheshire and Oswestry may spend a significant portion of the year abroad. People in this category should note that ‘expat’ taxable status will be changing next year.
The Autumn Budget announced that expats will be ineligible for class 2 national insurance (NI) contributions from April 2026. Anyone wishing to pay NI from abroad will need to present proof of a 10-year UK residency or evidence of a contribution history. Thereafter, the amount of income tax you are liable for will invariably depend on the amount of time you spend in the UK, your employment status, how much of your income is sourced in the UK and whether your overseas territory has agreed a double-taxation deal with the UK.
People who work abroad need to be aware of what constitutes a non-resident. Non-residents are exempt from nearly all UK taxation. To enjoy this status, you should have worked outside the UK for at least one full tax year, and cannot have worked in it for over 30 days per year. You should also have physically spent no more than 91 consecutive days in a row on British soil, or over 182 days during a single tax year. If you are in this position, it is vital you keep a precise log of the time spent in the UK and other jurisdictions.
If you are planning to retire abroad, you will need to assess how best to draw your pension. Transferring to a Qualifying Recognised Overseas Pension Scheme (QROPS) might make life simpler, but could also incur a hefty charge, so it is important to get solid financial advice beforehand.
