UK expat tax ramifications from COVID-19

Due to the COVID-19 pandemic UK expat tax reporting requirements have changed

What is the situation now?

Over the last year and half, the UK has introduced many measures designed to mitigate the spread of the Covid-19 pandemic, including the implementation of several lockdowns, which has impacted international travel significantly.

Many people had to reside in the UK for long periods of time, unable to leave, whilst others had to stay outside of the UK, unable to return.

The first of the UK’s lockdowns came into effect on 23 March 2020 just before the start of the UK 2020/21 tax year (6 April 2020 to 5 April 2021) and therefore the 2020/21 UK tax year is the first full tax year for which special consideration should be given to how the pandemic may affect your UK tax filing requirements.

With less than three months to go until the filing deadline for 2020/21 UK tax returns (31 January 2022) there is no better time than now to assess how the pandemic has impacted your UK tax position.

What reliefs might be available?

If you would usually have worked in the UK during the 2020/21 UK tax year, but have instead been working overseas and were considered non-resident in the UK, can you claim a repayment from HMRC of the UK tax you paid during the tax year?

Alternatively, if you have been working in the UK during the 2020/21 UK tax year when you would usually have been working overseas, are you happy with what you must report to HMRC and what tax may be due? Can any tax relief or tax credit be claimed?

HMRC has allowed only limited relaxations around how a person is taxed in the UK. Residing and working in the UK, solely due to the pandemic, does not automatically exempt you. HMRC may charge penalties for failure to register and file a UK self-assessment tax return and further penalties and interest may be charged if tax due to HMRC has not been paid.

Find out more

At MHA MacIntyre Hudson our Human Capital Advisory team can help you assess your UK tax filing requirements and make sure you are compliant whilst accessing any available credits or reliefs.

Get in touch by completing our online enquiry form to find out how the HCA team can help.