🇬🇧 UK Tightens Tax Rules for Freelancers & Digital Nomads

On June 6, 2025, HMRC updated its internal guidance clarifying that digital nomads and freelancers working remotely in the UK for just over 30 days in a tax year may become UK tax residents, even if their stay is temporary .

🔍 What Changed?

• The updated guidance states individuals cannot “disregard” any UK residence if they’ve stayed in a UK home for 30 or more separate days within the tax year (gov.uk).

• Previously, shorter stays—often under 90 days—were commonly understood as “non-resident” by many nomads using the UK as a transit hub.

💡 Why It Matters

• UK tax residency triggers broader obligations. Above the thresholds under the Statutory Residence Test (SRT), individuals are taxed on:

  1. UK income

  2. Foreign income, including royalty, freelance, or consulting earnings (gov.uk).

• The SRT contains multiple tests—including automatic overseas, automatic UK, and sufficient ties—to determine residency (litrg.org.uk).

⚠️ Who’s Impacted?

• EU‑based freelancers and digital nomads who’ve treated the UK as a convenient workspace for a few weeks each year may now be exposed to unexpected tax bills, potentially going back years.

• Remote-working platforms may need to adjust guidance to users on location strategies.

• Relocation and tax advisors will need to help clients reassess stints in the UK more rigorously.

🧭 Alternatives Gaining Popularity

In light of the tightened rules, many digital nomads are pivoting toward:

• Portugal and Spain — with their popular nomad visa regimes and favorable tax incentives,

• Dubai — offering near-universal zero‑income‑tax environments.

📌 Summary

1. HMRC’s new guidance (June 2025) clarifies the “30‑day rule” for UK tax homes (bdo.co.uk).

2. Working remotely from the UK for over 30 days could trigger UK tax residency and foreign‑income taxation .

3. Freelancers and nomads previously using the UK as a brief stopover must review their tax positions.

4. Many are now exploring Portugal, Spain, or Dubai as more favorable remote‑work hubs.

Stay tuned for more updates as remote-work tax policies continue to shift worldwide.