I live outside the UK

In todays accelerating world it is just a common thing to work or live abroad, travel from country to country. However, taxes should be payed everywhere, in order to avoid future inconveniences you should get a line a line on your duties regarding tax issues.

According to the UK tax law, if you do not live in the UK, but have a United Kingdom based income or pension, it is a subject of tax for the state. If you are not a UK citizen, but have your salary payed by a company that is either incorporated or has a central base of management in the country your income is a subject of tax as well. If you live in the UK but get you income from abroad the inverse of this applies.

However, you have to pay any other kinds of taxes for the local country, if you work there as well, the income from that job should be a subject of tax for that country. In order to avoid double taxation, you have to be aware of what kind of taxes are deducted from your income. The UK has made several bilateral agreement with other countries as well to avoid double taxation.