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 as PAYE handles their tax. You need to file a self-assessment return if you are self-employed, have income over 150,000 pounds, have significant savings income, or receive income from overseas. 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. In 2026, it is 12,570 pounds. 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.

UK Tax Guide for Visa Holders: Income Tax, NI, and Self-Assessment

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:

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

Scotland has different tax bands. 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 the primary threshold (around 12,570 pounds)
8% on earnings between the primary threshold and upper earnings limit
2% on earnings above the upper earnings limit

Your employer also pays NI on your behalf (13.8% on earnings above the secondary threshold). 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)

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 ILR self-employment evidence and citizenship tax implications.

Next Steps

Get a National Insurance number. If employed, check your payslip is correct. If self-employed, register with HMRC. Keep records of all income and expenses from day one.

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