UK Self Assessmentfor Dubai Expats

You have moved to Dubai. No income tax. No capital gains tax. Financial freedom at last. Except HMRC still wants to hear from you.

UK Self Assessment does not care where you live. It cares where your income comes from. If you have UK rental property, UK dividends, a UK pension, or you are still a director of a UK limited company, you have filing obligations. Miss them and penalties start from day one.

This guide covers every aspect of UK Self Assessment for Dubai-based expats: who needs to file, what forms you need, how split year treatment works, the deadlines that matter, the penalties for getting it wrong, and the UK-UAE treaty reliefs most people forget to claim.

Who Needs to File UK Self Assessment from Dubai?

Not every Dubai expat needs to file. But more people need to file than most people realise. You must submit a UK Self Assessment return if you receive any of the following UK-source income:

If none of the above apply, and you have no other UK-source income, you probably do not need to file. But there is an important catch: if HMRC has already issued you a notice to file (form SA316), you must submit a return even if you owe nothing. Ignoring a notice to file triggers automatic penalties.

P85 vs Self Assessment: Which Do You Need?

When you leave the UK, there are two ways to tell HMRC. The right one depends on your income situation.

Form P85: for simple departures

Form P85 ("Get your Income Tax right if you're leaving the UK") formally notifies HMRC of your departure and lets you claim back overpaid tax for the year you leave.

Use P85 if:

• Your only UK income was employment income (PAYE)
• You have no ongoing UK income sources after leaving
• You are not filing a Self Assessment return for the year of departure

You can submit P85 online through your Personal Tax Account or by post. Include your P45 from your employer. HMRC processing takes 6 to 8 weeks. If you are owed a refund, HMRC issues a P800 tax calculation and pays by cheque or UK bank transfer.

Self Assessment with SA109: for ongoing UK income

If you have any ongoing UK-source income after leaving (rental income, dividends, pension, directorship), you need Self Assessment. The P85 is not enough.

Non-residents must complete form SA109 (Residence, Remittance Basis) alongside the main SA100 return. SA109 is where you:

• Confirm your residence status under the Statutory Residence Test
• Claim split year treatment (if applicable)
• Claim relief under the UK-UAE Double Taxation Agreement
• Report your overseas income (if required)

Split Year Treatment: Limiting Your UK Tax Bill

Split year treatment is one of the most valuable reliefs available to people leaving the UK. It divides the tax year you leave into two parts:

• The UK part: you are taxed on your worldwide income (same as a UK resident)
• The overseas part: you are taxed only on your UK-source income

Without split year treatment, you could be treated as UK resident for the entire tax year of departure, meaning HMRC can tax your worldwide income for the full year.

Three cases for people leaving the UK

Case 3 is the most common for Dubai movers who are not taking up full-time employment overseas. The conditions are strict: you must dispose of or stop living in your UK home, spend fewer than 16 days in the UK after the split date, and establish residence in the UAE within six months.

For detailed rules on how the Statutory Residence Test determines your status, read our Statutory Residence Test guide.

What UK Income Is Taxed as a Non-Resident?

Once you are non-resident (or in the overseas part of a split year), the UK can only tax your UK-source income. Here is what that means for each income type:

UK rental income

Taxed in the UK at standard Income Tax rates (20%, 40%, 45%). The UK-UAE DTA confirms the UK's right to tax UK property income under Article 6. Since the UAE has no personal income tax, there is no double tax issue. You keep the personal allowance of £12,570 unless total UK income exceeds £100,000.

UK dividends

Dividends from UK companies are taxable in the UK. The £500 dividend allowance still applies. Rates for 2025/26 are 8.75% (basic), 33.75% (higher), and 39.35% (additional). From April 2026, basic rate increases to 10.75% and higher rate to 35.75%.

If you are a director of a UK limited company paying yourself dividends, this is likely your largest Self Assessment obligation. Read our dividend tax increase guide for the full impact.

UK pension income

This is where the UK-UAE Double Taxation Agreement becomes valuable:

• Private pensions: Under Article 17, taxable only in your state of residence. If you are UAE-resident, your UK private pension is effectively tax-free. You must claim this relief on your return.
• State pension: Same treatment under Article 17. Taxable only in the country of residence. The full new state pension (£12,005/year) can be received tax-free if you are UAE-resident.
• Government service pensions (civil service, NHS, armed forces, teachers): Different rules under Article 18. These remain taxable in the UK unless you are both a resident and a national of the UAE.

UK employment and directorship income

Employment income is taxable in the UK if the duties are performed in the UK. For directors, attending even a single board meeting in the UK creates a UK employment income obligation for that period.

If you are a UK company director living in Dubai and all your work is performed remotely from the UAE, the employment income from directorship duties performed outside the UK is not taxable in the UK. But dividends from that company remain UK-taxable. Read our directors loan account guide for related DLA considerations.

Filing Deadlines and How to File

Self Assessment deadlines are the same for non-residents as for UK residents. But the filing method is different.

How to file as a non-resident

You have two options:

1. Paper filing: Download and complete forms SA100 and SA109 from GOV.UK, print, sign, and post to HMRC. Deadline is 31 October. This is slower but guaranteed to work.
2. Commercial software: Use third-party tax software that supports SA109 filing. Deadline is 31 January. Your accountant will typically use this method on your behalf.

You cannot use HMRC's free online Self Assessment service if you need to file SA109. This is a significant limitation that catches many expats off guard.

Penalties for Late Filing and Late Payment

HMRC applies the same penalties to non-residents as to UK residents. Living in Dubai does not provide any protection or leniency.

The maximum penalty for a single year is potentially £1,600 plus 5% of tax due, plus 5% again at 12 months. On top of that, late payment interest runs at the Bank of England base rate plus 4% from April 2025 onwards.

Common Self Assessment Mistakes Dubai Expats Make

The UK-UAE Double Taxation Agreement

The 2016 UK-UAE Double Taxation Convention determines how income is taxed when you are caught between both countries. The key articles for Dubai expats:

Treaty relief is not applied automatically. You must claim it through your Self Assessment return. For pension income, this can mean the difference between paying thousands in UK tax and paying nothing.

Making Tax Digital for Non-Residents

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is rolling out from April 2026. It replaces the annual Self Assessment return with quarterly digital submissions. Here is how it affects Dubai expats:

The key concession: HMRC has confirmed that SA109 filers are not required to join MTD before April 2027, regardless of income. This gives non-residents an extra year to prepare.

Once MTD applies, you will need HMRC-compatible software to keep digital records and submit quarterly updates. The new penalty regime uses a points-based system: one point per missed quarterly submission, and at four points you receive an immediate £200 penalty.

For more on MTD, read our Making Tax Digital guide.

The Year You Leave: A Step-by-Step Walkthrough

The tax year you leave the UK is the most complex. Here is exactly what needs to happen:

Current UK Tax Rates for Non-Residents (2025/26)

Non-residents pay the same Income Tax rates as UK residents on their UK-source income:

These rates are frozen until at least 2028. The personal allowance (£12,570) is frozen until 2028 as well. Non-residents retain the personal allowance unless their total UK income exceeds £100,000, at which point it tapers.

Frequently Asked Questions