Who pays tax?
It is often confusing to find the right way in the tax maze mostly because of the various taxes and regulations which might be a subject of change annually and because tax laws usually differ country by country.
If you work in the UK or get your salary from a company from the UK your income is subject of the UK taxation. According to the law neither the place of residence nor the citizenship have an importance regarding income tax, but the source of the income taxed and if it’s coming from the UK to income tax on it must be paid to the UK government. This also applies for trading or rent through a UK based company or individual. According to the law a company is subject of taxation in the UK if it is incorporated in the country or has its main control and management centre in the country.
If an individual or a company is resident in the UK, but its income is from a foreign source, he or she is not obliged to pay any taxed after that income. To avoid double taxation in these complicated situation the UK government has made several bilateral tax agreement with other countries.

