UK IT consultants working abroad: the tax guide

Moving abroad does not end your UK tax position on its own. For each tax year it depends on the statutory residence test, whether split year treatment applies in the year you leave, which country’s social security scheme covers you, and where your UK limited company is run from. VAT and IR35 then turn on where your clients are, not where you sit.

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This guide is the starting point for UK IT consultants and contractors who are moving abroad or working from another country for a while. It sets out the UK rules in the order most people meet them, and points to detailed pages and country guides for each part.

Am I still UK resident after I move abroad?

UK residence is decided tax year by tax year under the statutory residence test. You work through the automatic overseas tests first. HMRC’s guidance gives three:

you spend fewer than 16 days in the UK in the tax year and you were UK resident in one or more of the previous three tax years
you spend fewer than 46 days in the UK and you were not UK resident in the previous three tax years
you work full time overseas over the tax year (averaging at least 35 hours a week), spend fewer than 91 days in the UK, and the number of days on which you work for more than 3 hours in the UK is less than 31

If none of those applies, you are UK resident if you spend 183 days or more in the UK in the tax year, or meet another automatic UK test. Otherwise the sufficient ties test decides. Contractors who travel between countries without a settled base should read the page on UK tax residence for digital nomads, and anyone relying on the third test should check the detail in the full time work abroad test.

Does split year treatment apply in the year I leave?

If you are UK resident for the year you leave, the year may be split into a UK part and an overseas part. For an IT contractor taking up a long contract abroad, the usual route is Case 1, starting full time work overseas. HMRC’s manual says you must be UK resident for the tax year and the previous tax year, be non UK resident in the following tax year because you meet the third automatic overseas test, and satisfy the overseas work criteria during a relevant period. The overseas part starts on the first day of that relevant period. Cases 2 and 3 cover other kinds of departure; see split year treatment.

You tell HMRC through your return. GOV.UK says Self Assessment taxpayers complete the residence section, form SA109, and people not in Self Assessment fill in form P85. The page on the SA109 residence pages explains what goes where.

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Which country’s National Insurance do I pay?

GOV.UK says you will usually pay social security contributions in the country where you work, and you can only pay into one country’s scheme at a time. There is an exception for temporary postings. If your UK employer, which for most contractors is your own company, sends you to work temporarily in an EU country, you can keep paying UK National Insurance for up to 2 years, provided HMRC issues a certificate of coverage. The application uses form CA3822, and you cannot apply more than 12 months in advance. Countries with a separate social security agreement with the UK use a different certificate, applied for on form CA9107.

The rules for EU postings and for agreement countries are set out in A1 certificates and social security abroad and National Insurance when working abroad. GOV.UK also suggests considering voluntary contributions if you are abroad and not paying Class 1.

Does IR35 still apply when I work from abroad?

It depends on the client and on you. HMRC’s Employment Status Manual says that where a client is wholly overseas, meaning it is not UK resident and has no UK permanent establishment, the off payroll rules in Chapter 10 do not apply. Your company should then consider whether Chapter 8, the original IR35 rules, applies instead. The same manual says a non UK resident worker doing work outside the UK is unlikely to fall within the charge to UK tax or National Insurance, so the off payroll rules will not apply. See IR35 when the client is overseas.

What happens to my UK limited company?

You can usually keep it. GOV.UK says directors do not have to live in the UK, but the company must have a registered office that is a physical address in the UK. HMRC treats a UK incorporated company as UK resident, but the country you move to may see things differently if every decision is now made there, and your home office could become a permanent establishment of the company. The detail is in keeping a UK limited company after moving abroad and non UK resident directors.

Do I charge VAT to overseas clients?

For business clients, usually not. VAT Notice 741A says the general rule for business to business services is that the supply is made where the customer belongs, and no UK VAT is chargeable where the place of supply is outside the UK. GOV.UK also says out of scope sales do not count towards the £90,000 registration threshold. How to word invoices, handle currency and evidence business status is covered in invoicing overseas clients and place of supply of services.

Can HMRC check my return after I move?

Yes. For a return received on or before the filing deadline, HMRC’s Self Assessment Manual says the enquiry window runs for 12 months from the date the return is received. A first year claim for split year treatment or non residence can prompt questions, so keep travel records, contracts and evidence of your overseas home. HMRC can open a check into a return after a move abroad, and the accountant’s fees for dealing with it can be insured through tax investigation insurance. See HMRC enquiries after moving abroad.

Which country guides should I read?

Each country guide summarises the main local rules and the UK points that apply there. Foreign rules change often, so check the position with an adviser in that country before relying on it.

Issue	UK rule in brief	Source of the rule
Automatic non residence	Fewer than 16 days in the UK (46 if not resident in the previous 3 years), or full time work abroad with fewer than 91 UK days	Statutory residence test
Automatic residence	183 days or more in the UK in the tax year	Statutory residence test
Year of departure	Case 1 split year if you start full time work overseas	HMRC Residence and FIG Regime Manual
National Insurance on an EU posting	UK NI for up to 2 years with a certificate of coverage	GOV.UK, form CA3822
IR35 with an overseas client	Chapter 10 does not apply if the client has no UK connection; consider Chapter 8	Employment Status Manual
VAT on business clients abroad	Supplied where the customer belongs; outside the scope of UK VAT	VAT Notice 741A
HMRC enquiry window	12 months from receipt of an on time return	Self Assessment Manual

Illustration only. Priya is a UK resident software contractor who trades through her own company. On 1 August 2026 she starts a two year contract based in Lisbon, working about 40 hours a week. She was UK resident in 2025 to 2026, so she is UK resident for 2026 to 2027 as well. If in 2027 to 2028 she spends fewer than 91 days in the UK and works more than 3 hours on fewer than 31 UK days, she meets the third automatic overseas test for that year, and Case 1 can split 2026 to 2027 so her overseas part starts when the full time work began. Her company’s client is a Portuguese business with no UK presence, so Chapter 10 does not apply, the invoices carry no UK VAT, and she reviews Chapter 8 and her social security position before she goes.

Frequently asked questions

Do I tell HMRC I have left the UK?

Yes. GOV.UK says Self Assessment taxpayers use the residence section, form SA109, and others use form P85. Do this for the year you leave, even if you expect little UK income.

Do I still pay UK tax on anything once I am non resident?

GOV.UK says non residents do not pay UK tax on income or gains they get outside the UK, but can still be taxed on UK income, such as rent from a UK property. Dividends from your own UK company follow special rules covered in the company guide.

Can I be taxed twice on the same income?

GOV.UK says double taxation agreements may prevent you from being taxed twice. How the treaty decides residence and which country taxes each type of income is explained in how double tax treaties work.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 6 November 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.