Client country · GBP
Your client is in the United Kingdom. Here's what to know.
For Filipino freelancers who live in the Philippines and do the work here.
The short answer
UK clients generally pay overseas freelancers in full with no UK tax deducted, and a UK business handles any UK VAT itself, so your tax is with the BIR.
Where the tax goes
Who taxes your pay from a client in the United Kingdom?
If you live in the Philippines and do the work here, the income is generally taxed in the Philippines.
Working while physically in the UK, or having a UK business base, can create UK tax obligations. Get advice before you do that.
Before you get paid
Will anything be withheld?
UK businesses generally pay self-employed overseas contractors gross, with no UK income tax deducted.
The Construction Industry Scheme, which can require deductions, does not apply to construction work carried on outside the UK.
Set aside your Philippine tax from each payment yourself.
Paperwork
What clients commonly ask for
- An invoice for each payment with your name, Philippine address and services provided.
- A contract or statement of work. Some clients also ask you to confirm you are self-employed and not their employee.
- Bank or payment details (Wise and similar providers can give you UK account details).
Consumption tax
VAT / GST
For most business-to-business services, HMRC treats the supply as made where the customer belongs. A UK business buying from an overseas supplier generally accounts for the VAT itself under the reverse charge.
So you generally do not charge UK VAT to a UK business client. Rules for selling digital services to UK consumers are different; check GOV.UK if that applies to you.
Getting paid
Common ways clients pay
- Bank transfer in GBP
- Wise (UK account details)
- Payoneer
- PayPal
- Upwork, Fiverr or other platforms
Fees and exchange rates differ by provider and change often. Compare what lands in your account with the take-home calculator.
Common mix-ups
Myths vs facts
MythI have to add UK VAT to my invoices.
FactGenerally not for business clients. The UK business accounts for VAT under the reverse charge.
MythMy UK client handles all the tax.
FactThey generally pay you in full. Your income tax is yours to file and pay with the BIR.
Your checklist
Before your next UK payout
- BIR registration done
- Invoices show your Philippine address and the client's business details
- Peso value and exchange-rate proof saved for each payout
- Money set aside for Philippine tax (nothing is withheld)
- Tax option (8% or graduated) chosen on your first quarterly return
Same for every client
The Philippine side
- 1
Register with the BIR
Foreign clients do not register you. File Form 1901 (via ORUS or your RDO), get your Certificate of Registration, register your books and issue invoices.
- 2
You are taxed on worldwide income
Filipino citizens living in the Philippines are taxed on income from everywhere. Where the client is based does not remove your Philippine tax.
- 3
Pick 8% or graduated rates
If your gross is ₱3,000,000 or less and you are non-VAT, you can elect 8% (on gross above ₱250,000) instead of graduated rates plus 3% percentage tax. Elect it on your first quarterly return of the year.
- 4
Report in pesos and keep the rate
Record each payment in pesos on the day you receive or convert it, and keep proof of the exchange rate you used (platform statement, bank or e-wallet record). Use the same method all year.
- 5
Foreign tax withheld? Keep the proof
If tax was withheld abroad, Section 34(C) of the Tax Code may let you claim a foreign tax credit, subject to limits. Treaty relief may need extra paperwork, such as a BIR certificate of residence. Ask an accountant before relying on either.
Common questions
Will my UK client deduct tax from my invoice?
Generally no. UK businesses usually pay self-employed overseas contractors in full. Your tax is paid in the Philippines.
Do I charge UK VAT?
Generally not to a UK business. For most business-to-business services, the UK customer accounts for VAT under the reverse charge.
Do I need to file a UK tax return?
Generally not if you live and work in the Philippines and have no other UK income. Get advice if you work while in the UK.
Tools for this
How much tax do I owe?
Self-Employed & Freelancer Tax Calculator
Compute your income tax under the 8% flat rate or graduated rates, with quarterly amounts and client-country warnings.
Open tool →
Upwork or Fiverr take-home?
Upwork & Fiverr Take-Home Calculator
From client rate to pesos in your account: platform fees, transfer fees, exchange rate and tax.
Open tool →
How much should I save each month?
Monthly Set-Aside Calculator
Know how much of each payout to set aside for tax and contributions so filing season is never a surprise.
Open tool →
Read next
Getting started
How to register as a freelancer with the BIR: a step-by-step guide for 2026
Registering with the BIR is the first step to freelancing legally in the Philippines. Here is what to prepare, how the process works online or at your RDO, and the mistakes that cost new freelancers money.
Read the guide →7 min read
Choosing your tax
8% flat rate vs graduated tax: which one actually saves you money as a Filipino freelancer?
The BIR gives Filipino freelancers a choice: pay 8% flat on gross income, or use the graduated tax table with optional deductions. The right answer depends on your income level and how many legitimate expenses you can document.
Read the guide →7 min read
Choosing your tax
How much should a Filipino freelancer set aside for taxes each month?
No one withholds tax from your freelance payouts, so a big bill can catch you off guard. Here is how to work out a set-aside amount, with a full ₱50,000-a-month example on both tax options.
Read the guide →7 min read
Sources: GOV.UK: Place of supply of services (VAT Notice 741A) · GOV.UK: Construction Industry Scheme for businesses based outside the UK · BIR: Philippines–UK convention (PDF) · BIR: Philippine Double Taxation Agreements
Last checked October 19, 2026. General information, not tax advice. Rules change, and your situation may differ if you travel to work, hold another citizenship, or run a foreign company. Check with the client's tax team or an accountant.