Overseas Teachers UK Tax Back
Teachers: How do you fancy earning two years’ salary tax free while gaining international experience?
The UK has Double Taxation Agreements with many other countries. Just over 50 of these treaties include a clause allowing teachers, researchers and professors to work in the other signatory’s country for up to two consecutive years, without paying tax in either country.
So if you are from one of these countries, you can spend two years teaching in the UK tax free. If you are from the UK, you can sometimes work for two years in the other country without paying income tax.
What is a Double Taxation Agreement?
A Double Taxation Agreement is a treaty signed between two countries to ensure that individuals do not pay tax on the same income in both countries. In other words, you don’t end up doubling up on income tax payments if you are tax resident in one country and working in another. These agreements are not all the same and the UK does not have them in place with every other country.
Which countries include the clause about teachers?
The following countries currently include the income tax exemption for teachers, researchers and professors:
- Austria, Bangladesh, Belarus, Belize, Bosnia-Herzegovina, Myanmar (formerly Burma), Croatia, Cyprus, Egypt, Estonia, Fiji, Finland, Ghana, Greece, Grenada, Hungary, India, Israel, Italy, Jamaica, Jordan, Kenya, Kiribati and Tuvalu, Kuwait, Latvia, Lithuania, Luxembourg, Malawi, Malaysia, Mauritius, Mongolia, Montenegro, Montserrat, Namibia, Nigeria, Pakistan, Philippines, Poland, Romania, St Kitts and Nevis, Saudi Arabia, Serbia, Sierra Leone, Slovenia, Solomon Islands, South Korea, Sri Lanka, Swaziland, Taiwan, Turkey, USA, Zambia.
It is important to know that double taxation treaties can change at any time.
What else do I need to know?
These treaties are not set in stone. Even the ones that were originally signed in the forties and fifties have a raft of amendments added to them. Clauses are deleted, added and changed all the time. This means that you need to check the one that will affect you as you start making your international adventure plans.
They are legal documents, so the language takes a little bit of getting used to.
It is also important to know that not all of the included clauses are worded in the same way. Some specify the type of work you undertake as being “…only in the public interest and not primarily for the benefit of some other private person or persons”
The ‘two consecutive years’ maximum time limit is universal.
My country is not on this list, does that mean that if I teach in the UK I’ll have to pay double income tax?
No, this does not mean you have to pay double income tax. The countries listed above are particularly interesting and beneficial to the taxpayer because their treaty says they don’t have to pay income tax in either country. The other countries in a Double Taxation Agreement with the UK include clauses which mean that you only pay income tax in either the country you work, or your home country – not both. You need to check that your country has a Double Taxation Agreement with the UK. Or, if you are from the UK, that the country you want to work in has such a treaty.
Did you know that every UK income tax payer is entitled to reclaim work related tax reliefs and allowances?
It doesn’t matter if you are an international teacher, professor or research worker, if you pay income tax in the UK then you can claim tax relief on particular work expenses.
The most common things that our previous teaching clients have successfully claimed for are:
- Membership fees for professional bodies and/or Trade Unions like the NUT
- Using your own vehicle to make work journeys
- Not using your full tax free personal allowance
- Buying and cleaning specialist clothing like a P.E teacher for example
- Working from home
Our UK tax system is complicated and many UK taxpayers consider it wise to entrust their tax relief claim to a tax expert.
How we can help
Tax Rebate Services saves you time researching the rules and waiting to get advice from HMRC helplines. We also eliminate the worry of potentially submitting a claim that includes mistakes that incur a fine. Our professionally regulated experts just need some initial information from you, then we see your claim right through until you receive your tax rebate cheque. Our popular ‘No rebate, No fee’ policy has served us well in providing a transparent, ethical service. Your first claim can be backdated for four tax years and you can still submit a claim if you’re living abroad.
If you have questions about double taxation treaties and how they affect your financial ability to work internationally, give us a call. Even if you can’t work tax free, we’ll probably be able to save you something on your UK tax bill.
