UK Tax Guide for Visa Holders: Income Tax, NI, and Self-Assessment
Understanding UK tax is essential for anyone working in the country. The system is different from most other countries, with automatic deductions through PAYE for employees and self-assessment for the self-employed. This guide explains what visa holders need to know about income tax, National Insurance, and their obligations.
- Section
- Practical Life in the UK
- Reading time
- 11 min
- Last checked
- 25 March 2026
- Source
- The published Immigration Rules and GOV.UK guidance, linked throughout this guide.
- Rowan does not
- Look at your own case, tell you which route to choose, or say what the Home Office will decide. This guide shows the published rules and where to read them.
In short
- Income tax and National Insurance apply to all workers regardless of visa type.
- PAYE automatically deducts tax for employees — no action needed.
- Self-employed workers must register with HMRC and file self-assessment returns.
- The personal allowance (tax-free income) is 12,570 pounds.
- Double taxation agreements may prevent you being taxed on overseas income twice.
Visa holders working in the UK pay income tax and National Insurance on their earnings. Most employees have tax deducted automatically through PAYE. Self-employed individuals must register with HMRC and file self-assessment returns. The personal allowance is 12,570 pounds. This guide covers tax bands, NI, self-assessment, and common questions.
Income Tax Bands
UK income tax is progressive — you pay higher rates on higher earnings:
For the 2026 to 2027 tax year, in England, Wales and Northern Ireland:
- Personal allowance (0%): Up to 12,570 pounds
- Basic rate (20%): 12,571 to 50,270 pounds
- Higher rate (40%): 50,271 to 125,140 pounds
- Additional rate (45%): Over 125,140 pounds
The personal allowance goes down by 1 pound for every 2 pounds of income above 100,000 pounds, and reaches nothing at 125,140 pounds. Scotland has its own income tax bands and rates. Check the GOV.UK income tax rates page for the latest figures.
National Insurance
National Insurance (NI) contributions fund the state pension, NHS, and other benefits. Rates for employees:
- 0% on earnings up to 242 pounds a week (1,048 pounds a month)
- 8% on earnings between 242 and 967 pounds a week (1,048 to 4,189 pounds a month)
- 2% on earnings above 967 pounds a week (4,189 pounds a month)
Your employer also pays National Insurance on top of your wages: 15% on your earnings above the secondary threshold of 96 pounds a week (5,000 pounds a year). NI contributions build your state pension entitlement — see our pension guide. Get your NI number as early as possible.
PAYE for Employees
If you are employed, your employer handles your tax through PAYE (Pay As You Earn). This means tax and NI are deducted from each pay packet before you receive your wages. You receive a payslip showing gross pay, deductions, and net pay.
At the end of each tax year (5 April), your employer gives you a P60 summarising your pay and deductions. If you change jobs, you receive a P45 from your old employer to give to your new one.
Self-Assessment
If you are self-employed or have income outside PAYE, you must register for self-assessment with HMRC and file an annual tax return. Key dates:
- Tax year: 6 April to 5 April
- Registration deadline: 5 October after the tax year you need to file for
- Online filing deadline: 31 January following the end of the tax year
- Payment deadline: 31 January (with possible payments on account in July)
Register on GOV.UK. If you are self-employed, see our guide on self-assessment for visa holders for more detail. Consider using an accountant, especially if you are new to the UK tax system.
Overseas Income
If you are UK tax resident (broadly, living in the UK for 183+ days per year), you may need to declare worldwide income. Key considerations:
- Double taxation agreements prevent being taxed twice on the same income
- Rental income from property abroad may be taxable in the UK
- Overseas savings interest may be taxable
- Non-domiciled residents may be able to use the remittance basis (complex area — seek professional advice)
For the impact on immigration applications, keeping clean tax records is important for settlement self-employment evidence and citizenship tax implications.
Next Steps
Get a National Insurance number. If employed, check your payslip is correct and understand the PAYE system. If self-employed, register with HMRC. Keep records of all income and expenses from day one.
Related guides:
Questions and answers
Do I pay tax in the UK on a visa?
Yes. If you work in the UK, you pay UK income tax and National Insurance on your earnings, regardless of your visa type. Tax is usually deducted automatically through the PAYE (Pay As You Earn) system. If you are self-employed, you must file a self-assessment tax return.
Do I need to file a tax return as a visa holder?
Most employed people do not need to file a tax return, because Pay As You Earn handles it. HMRC lists the situations that do require a return: self-employment income of more than 1,000 pounds before expenses, being a business partner, capital gains tax to pay, the high income child benefit charge, and untaxed income such as rent, tips, commission, savings interest, dividends or foreign income. There is no longer a rule that a high salary taxed only through Pay As You Earn means you must file. The tax year runs from 6 April to 5 April.
Am I taxed on income from my home country?
Your tax obligations depend on your UK residence status. If you are UK tax resident, you may need to declare worldwide income. However, many countries have double taxation agreements with the UK to prevent being taxed twice. Seek advice from a tax professional if you have significant overseas income.
What is the personal allowance?
The personal allowance is the amount you can earn before paying income tax. For the 2026 to 2027 tax year it is 12,570 pounds in England, Wales and Northern Ireland. You pay 0% tax on earnings up to this amount. Above this, you pay 20% (basic rate), 40% (higher rate), or 45% (additional rate) depending on your total income. The personal allowance goes down by 1 pound for every 2 pounds of income above 100,000 pounds, and reaches nothing at 125,140 pounds.
This guide is general information about published immigration rules. It is not advice about an individual application under s.82 Immigration and Asylum Act 1999, and Rowan is not regulated by the Immigration Advice Authority. Immigration rules change several times a year. For advice on a particular situation, contact an adviser authorised by the Immigration Advice Authority or an immigration solicitor. Always check GOV.UK for the authoritative current rules.