Working remotely abroad for a UK employer: tax and PAYE rules
How to stop UK tax deductions using an HMRC 'NT' code when working remotely abroad for a British company.
Short answer: If you live abroad and work remotely for a UK employer, your overseas salary should not have UK tax deducted. We help you get an HMRC 'NT' (No Tax) code so your employer stops deducting UK tax from your monthly payslip. Matthew manages your NT code application and any required UK split-year filings.
Key points
- Non-residents working wholly abroad do not pay UK Income Tax on their overseas salary.
- An HMRC 'NT' (No Tax) payroll code stops automatic PAYE tax deductions.
- Days worked physically inside the UK remain subject to UK Income Tax.
- You must register for local taxes in the country where you live and work.
- Matthew prepares NT code applications and annual non-resident tax returns.
How to get an HMRC 'NT' (No Tax) payroll code
By default, UK payroll software automatically deducts Income Tax under PAYE regardless of where you are sitting in the world.
Once you become non-UK resident under the Statutory Residence Test, Matthew submits a formal request to HMRC to issue an 'NT' code to your employer. This legally instructs your payroll department to pay your gross salary with 0% UK tax deducted.
Visits back to the UK for work
If you visit the UK for meetings, client pitches, or training, those specific workdays become taxable in the UK on a time-apportioned basis.
Matthew calculates the exact proportion of UK workdays and reports them on your annual Self Assessment return with SA109 residence pages.
Written and reviewed by Matthew S Manderson CTA ATT AMIT
Chartered Tax Adviser (CTA), Association of Taxation Technicians (ATT), Association of Malta International Taxation (AMIT). General guidance only; tax treatment depends on individual facts.