Ibrahim Gardner
International students in the UK often have questions about their residency status, particularly regarding taxes. Determining residency for tax purposes can be complex and depends on various factors, including the type of visa, duration of stay, income sources, and ties to the UK. While international students are generally exempt from paying council tax, they may be subject to income tax depending on their residence status and applicable tax treaties. Understanding residency requirements is crucial for international students to navigate their tax obligations and ensure compliance with UK regulations.
| Characteristics | Values |
|---|---|
| International students' residence status in the UK | International students are not considered UK residents under the Tier 4 visa. However, they may be considered residents if they have lived in the UK for more than three years. |
| Tax implications for international students | International students are generally exempt from paying council tax. They may also be exempt from UK tax on foreign income or gains if used for course fees or living costs. Everyone, including international students, must pay income tax. |
| Eligibility for home student status | To be eligible for home student status, international students must be 'ordinarily resident' in the UK, which means showing a degree of continuity in their time in the UK. There is no minimum period required, but they must have been resident for at least three years before the start of their course. |
| Access to NHS services | International students' access to NHS services is determined by an Ordinary Residence Test, which considers factors such as housing stability and employment status. |
| Pathways to permanent residence or citizenship | International students can seek permanent residence or citizenship in the UK, but it depends on their specific circumstances, such as their country of origin, visa status, and length of stay. |
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What You'll Learn
International students and council tax exemption
International students in the UK are generally exempt from paying council tax, but this depends on whether they meet the Council Tax definition of a 'student'. This definition states that a student is someone who is:
- Under 20 years old and studying for a qualification up to or equivalent to an A-level or Higher Scottish Certificate of Education on a course lasting 3 months or more, involving a minimum of 12 hours a week of daytime study.
- A foreign language assistant working in a school or educational institution and registered with the British Council.
- Enrolled at an institution in the UK or another country in the European Union on a course lasting at least one academic year or one calendar year if the educational institution does not follow an academic calendar.
If an international student does not meet the above criteria, they may still be exempt from paying council tax if they are studying for a nursing qualification on a full-time course. In this case, the course must lead to registration with the Nursing and Midwifery Council as a nurse or midwife.
It is important to note that simply having a Student visa (including Tier 4) does not automatically qualify someone as a 'student' for Council Tax purposes. Additionally, academic visitors do not qualify as 'students' and will typically be considered resident adults for the Council Tax bill.
To be considered a resident in the UK, an individual usually needs to have lived in the country for more than three years. However, some sources suggest that residing in the UK for more than six months may also qualify someone as a resident for tax purposes.
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International students and access to the NHS
International students in the UK can access healthcare through the NHS. However, the process and costs involved vary depending on the student's country of origin, visa status, and length of stay.
International students on a Tier 4 Visa are not considered UK residents. To be considered a UK resident, one must have lived in the country for more than three years. International students on a Tier 4 Visa are typically in the UK for six months or less, which is not enough to establish residency.
If an international student is in the UK for six months or longer, they must pay the Immigration Health Surcharge (IHS) as part of their visa application. The IHS costs £776 per year and allows students to access NHS services just like UK residents. However, there are still costs associated with special NHS services such as eye care, dental treatment, and prescriptions. In England, prescriptions cost £9.35 per item, while eye tests typically cost around £20-£25. In Scotland, Wales, and Northern Ireland, prescriptions and eye tests are usually free of charge.
To access NHS services, international students must first register with a General Practitioner (GP) at a local doctor's surgery or medical centre. They will need to provide a letter from their university confirming enrolment, their passport, and any relevant visa or immigration documents. Once registered with a GP, students will receive an NHS number, which proves their eligibility for NHS services. It is recommended that students register with a GP as soon as they arrive in the UK rather than waiting until they need medical attention.
It is important to note that the NHS only covers treatment for the student themselves. Any dependents, such as spouses, civil partners, or children, will need to pay the immigrant health surcharge individually and register with a GP to access NHS services.
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International students and UK citizenship
International students on a Tier 4 Visa are not considered UK residents. However, if you are living in the UK for longer than six months, you are likely considered a UK tax resident.
International students can apply for British citizenship, but there is no specific law or regulation that makes international students eligible to seek British citizenship. A student visa does not allow you to change your civil status to a regular UK resident. However, once you have completed your degree, you can explore options to switch your visa type and remain in the UK for longer.
To apply for citizenship, you must have lived in the UK for five years in a row, during which you were working, studying, or self-sufficient. You can also apply for citizenship if you are a spouse or civil partner of a British citizen and have lived in the UK for three years. If you are an EEA and Switzerland international student who has been living in the UK for over five years, you can apply for permanent residence.
If you are not ready to leave the UK after graduation, you can apply for a Skilled Worker Visa, formerly known as a Tier 2 (General) work permit. This visa is valid for five years, and if you are an EEA or Switzerland national, you can seek to become a permanent resident after it expires.
To qualify for a UK Skilled Worker Visa, you must have a job offer from a UK-based company with a valid sponsorship license. The job must meet the minimum salary requirements, which will depend on the type of work. Graduates under 26 will enter the job market as "new entrants" with lower salary requirements for a Skilled Worker Visa.
In summary, while international students can pursue various pathways to extend their stay in the UK and eventually seek permanent residence or citizenship, there is no direct route from being an international student to becoming a UK citizen.
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International students and UK residency requirements
International students in the UK are subject to various regulations and requirements regarding their residency status. While the specific rules may vary across different parts of the UK, there are some general guidelines that apply.
To be considered a resident for tax purposes in the UK, an international student usually needs to live in the country for more than six months or 183 days. This typically makes them a tax resident, and they may be required to pay income tax on their earnings, regardless of their international student status. However, there are some exemptions for international students when it comes to certain taxes, such as council tax.
To be eligible for 'home student status' and the associated fees, an individual must meet the criteria of being 'ordinarily resident' in the UK. This term is not clearly defined in statute or immigration rules but generally refers to an individual whose time in the UK shows a degree of continuity. There is no minimum period required to be considered ordinarily resident, and temporary absences are permitted. However, for 'home student status', students must have been ordinarily resident in the UK on the first day of the academic year and for the three years before that date, with some exceptions.
International students on a Tier 4 visa are not considered UK residents under the residency requirements for specific visas. To be eligible for permanent residence or citizenship, international students may need to meet additional criteria, such as living in the UK for a certain number of years, having indefinite leave to remain, or being a qualified person from the EEA or Switzerland.
It is important for international students to understand the specific regulations and requirements that apply to their unique circumstances, as there may be variations based on their country of origin and the specific part of the UK in which they are studying. Seeking advice from official sources, such as the UK Council for International Student Affairs (UKCISA) or immigration specialists, is always recommended.
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International students and UK work visas
International students on a Tier 4 Visa in the UK are not considered UK residents. To be considered a UK resident, one must have lived in the UK for longer than three years. International students are, however, eligible for a student visa, which allows them to work for a maximum of 20 hours per week during term time. This includes paid or unpaid work and for one or more organizations.
To be eligible for a student visa, one must be 16 or older and planning to study in further or higher education in the UK. The visa fee must be paid for each dependent, and the applicant must also pay the healthcare surcharge. If the applicant is under 18, they may be eligible for a Child Student Visa. The visa allows students to work full-time during official university vacation periods. Undergraduate students can undertake internships during these periods, while Masters students can undertake internships as part of their course. PhD students are eligible to apply for a two-year Graduate Route working visa, while Masters students can apply for a three-year visa.
Once a course has officially ended, a student is considered to be on 'vacation' and can work full-time for up to four months or until their student visa expires. If a student wishes to take on a permanent full-time job in the UK after their course, they must apply to change their visa status.
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Frequently asked questions
The residence position of students who come to the UK is determined under the statutory residence test. If you have lived in the UK for more than 3 years, you are likely a UK resident. However, working out UK residence status can be hard for overseas students given their likely patterns of presence.
The statutory residence test (SRT) is a test that determines whether or not you are a UK resident. It is focused on where you have a 'home' and whether you carry out full-time work in the UK or overseas.
Foreign students usually do not pay UK tax on foreign income or gains, as long as they are used for course fees or living costs. However, everyone has to pay income tax at their appropriate tax band, international student or not.
Given that students normally have a 'home' in their home country and a term-time residence in the UK, it can be unclear where a student should consider that they have a 'home'. If the tests which consider a taxpayer’s home are not met, it is normally necessary to consider what ‘ties’ that taxpayer has to the UK and compare this with the number of days spent in the UK.
To be considered to be carrying out full-time work in the UK or overseas under the SRT, you must do so over a much longer period (generally a year).
