Living Overseas and Working for the UK Government: Can You Be a Non-Resident for Taxes?

It is commonly known that your employment income whilst working for the UK government is almost always fully taxable in the United Kingdom, whist living overseas. This is because employees of government institution such as the Ministry of Defence (MoD), Foreign Office and other institutions are deemed to be Crown Servants.

However, there is a common misconception that your status as a Crown Servant, or Diplomat removes your ability to be a non-resident for UK tax purposes. For the avoidance of doubt, your other income that is not employment income as a Crown Servant employee, will be treated under normal rules as a non-resident.

Here’s the breakdown:

• Crown Servant Salary: This income is generally subject to UK taxes, regardless of your location.
• Other Income: Any income you earn outside of your Crown Servant role falls under the normal rules for non-residents. This could be rental income, investments, or freelance work.

The Bottom Line:

Being a Crown Servant overseas doesn’t prevent you from being a non-resident for UK tax purposes on your non-employment income.

Need Help Sorting Out Your Taxes?

Spondoo Accountants are licensed accountants and tax advisers in the United Kingdom, Kenya and the United Arab Emirates. If you are living anywhere in the world and receive income and need your UK, Kenya or UAE tax affairs reviewed, please do not hesitate to get in contact with us.