⚠️ We are currently updating our 2021/22 tax guidance across the website
⚠️ Our Tax Guide for Students guidance has moved to the LITRG website. If you are a student or have a student loan and have a query about any of the issues we cover in the section, please let us know by filling in the Contact Us form.
Whether you are going to study or work, there are tax points to consider.
There are many opportunities to travel abroad as a UK student: you might consider going abroad for some time during your studies, perhaps for an academic year as part of an arranged study placement or work scheme. You may even decide to apply to do your whole course in an international institution – there are options from full degrees to doctorate programmes. And let’s not forget those long summer vacations when you might want to do some volunteering or go on a working holiday for example.
What do I need to do when I move abroad?
If you are going to be working and earning income whilst you are abroad (and this will obviously depend on whether you are permitted to work in your host country!) you will need to notify HMRC and consider your UK tax situation (for example, whether you are due a UK tax refund or need to complete a tax return).
Contrary to popular belief, it is important that you are aware that there are no special rules that apply to students and that the same tax and National Insurance contributions (NIC) rules apply to students as to others working abroad.
You may also have to get to grips with tax matters in your host location.
We are only talking about earned income here – students may receive other financial support for their education, maintenance or training, for example, grants, bursaries, employer-sponsored payments (scholarship income) or gifts from parents. Typically, these are not taxable – either in the UK or overseas – due to international agreements.
What is covered in these pages?
We will go on to look at the tax implications of some typical outward student scenarios in the examples Max, Ahmad and Cerys and Victoria. But first, we need to consider the basics (for example residence and double taxation), so that we can apply them to their situations.
The following pages will be useful:
- Double Taxation
- National Insurance
- Notifying HMRC
- Claiming a tax refund
- Filing a tax return
- Studying and working abroad for a year (foreign taxes paid): Max
- Studying and working abroad for a year (no foreign taxes paid): Ahmad
- Working abroad casually: Cerys
- Studying and working abroad on a longer term basis: Victoria