Getting paid by a foreign company in the UK

If you’re getting paid by a foreign company while living in the UK, you need to make sure the sender uses the right payment route and that the amount arrives as expected. Employees and contractors may need different account details, especially when payments involve SWIFT, USD, or EUR. UK tax treatment can also vary depending on your residence status, employment setup, and whether tax has already been paid abroad. This guide explains what payment details to share, where fees can appear, how Wise may fit into the process, and when PAYE, Self Assessment, or double-tax relief may need attention.

Key takeaways

• Payment route: A foreign employer may be able to pay your UK account directly, but some overseas finance teams may use SWIFT if they do not have access to a suitable local payout route. Confirm the payment rail before you send any details.
• Account details: The correct details depend on both the currency and the route. A GBP salary may use a sort code and account number, while USD or EUR payments may need different local or SWIFT details.
• Tax and reporting: UK residents are generally taxed on worldwide income, but the filing route changes if PAYE is already running, if you are a contractor, or if tax has already been withheld abroad.
• FX costs: The visible transfer fee is only one part of the total cost. Exchange-rate markups, inbound wire fees, and intermediary deductions can matter just as much.
• Records: Keep contracts, payslips or invoices, proof of tax withheld abroad, and a clear record of each incoming payment and any later conversion.
• Where Wise can help: A Wise account can help you receive supported currencies, hold them briefly, and convert to GBP later. Wise is a financial institution, not a bank.

The contents of this article are for informational purposes only and do not constitute legal or tax advice. Decisions related to tax should be made after thorough research, consultation, and verification with qualified financial and legal advisers.

How getting paid from abroad works in the UK

A salary paid from New York and a contractor invoice paid from Berlin can reach the UK in very different ways. In practice, most readers fall into three groups: employees of an overseas company, contractors or freelancers billing foreign clients, or people receiving foreign-currency payments into an account they use from the UK.

Employee salary vs contractor payments

The label matters. An employee may be on an overseas contract, a UK payroll run by an employer of record, or a setup where the employer is abroad but some UK payroll obligations still exist.

Contractor payments from abroad work differently. You may invoice as a sole trader, through a limited company, or through a platform, which changes the paperwork, payment pattern, and HMRC checks you may need to make.

Check your agreement for:

• whether you are described as an employee, contractor, or company supplier
• which currency you will be paid in and how often
• whether any tax or social security is already being withheld abroad
• whether the payer expects invoices, payroll references, or both

Local details, UK transfers, and SWIFT

Ask the sender what rail they actually use before you send any details. If a UK payroll provider is involved, UK domestic rails such as Faster Payments, BACS, or CHAPS may work. Some foreign employers may use SWIFT if they do not have access to a suitable local payout route. For more background on cross-border payment routes, see Expatica’s guide to international money transfers in the UK.

Route	What the payer needs	Typical use	What to verify first
Faster Payments	Sort code, account number, account holder name	Faster UK domestic payments in GBP	That the sender can make UK domestic GBP payments
BACS	Sort code, account number, payroll setup details	Batch salary runs in GBP	That the employer or payroll provider is set up for BACS
CHAPS	Sort code, account number, account holder name	Higher-value same-day GBP payments	That the sender needs a UK high-value route rather than SWIFT
SWIFT	Account holder name plus the relevant SWIFT or international account details	Overseas salary or contractor payments	Which currency will be sent, whether intermediary deductions may apply, and whether the receiving account supports that route

Payment availability and required details depend on the sender, currency, provider, and route. Confirm the current requirements before payday.

What your foreign employer needs from you

Payroll teams reject plenty of first payments for one simple reason: the details do not match the payment route. Small errors in currency, reference, or account format can delay payday or reduce the amount that arrives.

Details to share for a Wise account

If you want to use Wise, start with the live receiving details shown in your account, not an old screenshot or a guess from another currency balance. The broader setup is similar to the one covered in How to use Wise in the UK as an expat, but the details still need to match the sender’s route.

Wise can be helpful if you want to receive in a supported currency and decide later whether to convert to GBP. It can also help if you are comparing holding options such as USD accounts in the UK.

Share the exact account holder name, the currency you want to receive, the correct local or SWIFT details for that currency where available, the payment reference the sender must include, and confirmation of whether the sender can use local rails or only SWIFT.

Records, invoices, and payslips to keep

Good records help with both disputes and HMRC reporting. Keep:

• your contract or engagement letter, to show whether this is salary, freelance income, or company income
• payslips or invoices, so you can match each incoming payment to what was due
• proof of any tax withheld abroad, in case you later need to review relief or reporting
• incoming payment confirmations, including the sent amount, received amount, and any deductions
• conversion records, so you can reconcile foreign receipts against your GBP records later

Do you pay UK tax on salary or contractor income from abroad?

If you are UK tax resident, HMRC will usually look at your worldwide income rather than only what was paid from inside the UK. That does not put every reader on the same filing route, and it does not mean foreign salary is automatically taxed twice.

What matters is how the income reaches you in tax terms. Some readers will already have PAYE dealt with before the money lands, while others may need to review Self Assessment, foreign tax relief, or residence rules within the wider British taxes: understanding the UK tax system in 2026 framework.

When PAYE may apply and when Self Assessment is more likely

Some overseas employers use a UK payroll provider or employer of record. In those cases, PAYE may already be deducting Income Tax and National Insurance before you are paid. If you are a contractor, or if no UK payroll is running, Self Assessment is more likely to matter.

The UK tax year runs from 6 April to 5 April. If you need to register, HMRC usually expects that by 5 October after the end of the relevant tax year, and online filing is usually due by 31 January. The core return is SA100, and foreign income may also need the SA106 foreign pages. The practical steps are close to those explained in How to file income taxes in the UK in 2026.

Check whether you may need to register if:

• no UK PAYE is being operated on your foreign salary
• you invoice foreign clients directly as a contractor or sole trader
• you receive foreign income that has not been fully dealt with at source
• you already file Self Assessment and now have foreign income or foreign tax paid to report

Double taxation, tax relief, and UK residency checks

Receiving foreign pay and working out how HMRC taxes it are two separate tasks. LITRG guidance suggests working through three questions: what UK domestic rules say first, whether a treaty changes that answer second, and how any relief is claimed third.

That is why HMRC’s Tax on foreign income guidance is the best starting point, while the Statutory Residence Test helps you check whether the worldwide-income rule is likely to apply to you at all.

If tax was already withheld abroad, review the UK tax treaties collection and the SA106 foreign pages rather than assume the UK will ignore the income. Newer arrivals should also note that the 4-year Foreign Income and Gains regime does not provide FIG relief for foreign earnings or foreign specific employment income. Some qualifying new residents may instead be eligible for Overseas Workday Relief on employment income relating to duties performed outside the UK.

If your year involves split-year treatment, leaving the UK, or mixed-residency questions, the broader context in UK Non-Resident Tax Rules for Expats becomes relevant.

How to use a Wise account to receive money from abroad

Some readers want a payment route that lets them receive supported foreign currencies, hold them briefly, and convert only when needed. That is where a Wise account can fit into the workflow. Wise is a financial institution, not a bank, and using it does not change your tax treatment.

Opening the account and getting verified

If the sender plans to pay by SWIFT, check the specific receiving fee for that currency before payday. Wise currently shows multiple receiving options for UK users, but product availability and pricing can change.

Receiving in foreign currencies and converting to GBP

If the currency is supported, you may be able to receive the payment in the employer’s currency, hold it there, and convert only what you need into GBP. That can help if your rent, bills, and savings do not all need to move on the same day.

Take a simple example. An expat in Manchester is paid in USD by a US company. They receive the payment in USD, convert enough for this month’s GBP rent and bills, and keep the rest in USD for a software subscription due later. That is a budgeting choice, not a forecast on where the market will move next.

If you want supported foreign-currency receiving details and transparent conversion, Wise is one practical option to compare with your current bank or another money transfer provider.

Fees, exchange rates, and when to convert

A low transfer fee can still turn into an expensive payment once the exchange rate and bank deductions are factored in. The total cost of getting paid from abroad is usually wider than the first fee line suggests.

Where costs can show up

Cost area	Where it appears	Who may charge it	What to verify
Sender fee	Before the payment is sent	Employer bank or payroll provider	Whether the employer pays this or deducts it from the transfer
Inbound wire fee	When the payment arrives	Your provider or receiving account	Whether the route is domestic, wire, or SWIFT
Intermediary deduction	Mid-transfer on some SWIFT routes	Correspondent banks	Whether the payment can arrive short even if the sender paid in full
Exchange-rate markup	During conversion to GBP	Banks or providers	The rate offered against the mid-market rate
Provider conversion fee	When you switch currency	Your provider	Whether the fee is fixed, percentage-based, or both

Fees and deductions vary by provider, currency, and route. Check current pricing and the receiving method before payday or conversion.

Major local banks such as Barclays, HSBC UK, Lloyds, and NatWest may charge costs in different places depending on the account and route. Often the bigger surprise sits in the rate rather than the line marked fee. Never assume a route is free unless the exact currency and rail are confirmed.

When holding the foreign currency may help

Holding the payment currency for a short time can work well when your spending is split across currencies. It is simply a cash-flow decision.

It may help to hold some of the payment currency if:

• you still have regular expenses in that currency
• your main GBP bills are spread across the month
• you want to convert in stages instead of all on arrival
• you are comfortable with the fact that exchange rates can move either way

Common pitfalls and how to avoid them

Even after you choose the right route, small operational mistakes can still derail payday. Getting the money in and keeping your HMRC records straight are connected, but they are not the same job.

Another common mistake is assuming every employer can use local payment rails. One overseas company may be able to send Faster Payments through a UK payroll partner, while another can only send SWIFT in USD. Start with the sender’s actual payment rail, not their country or company size.

Use this final checklist:

• send only the exact account details shown for the route and currency
• confirm whether the employer can use local rails or only SWIFT
• check whether PAYE is already being operated before assuming everything must go through Self Assessment
• keep employee and contractor records separate
• avoid converting everything immediately if some bills or savings stay in the foreign currency
• keep evidence of any tax already paid abroad

Conclusion

Getting paid from abroad is easier when you separate the payment route from the tax treatment. Confirm the rail and currency before sharing account details, keep clear records of what was sent and received, and check whether PAYE or Self Assessment applies to your setup. If tax has already been withheld abroad, review the relevant HMRC guidance and treaty position rather than assuming the income is taxed twice. A Wise account can be one option to compare for supported foreign-currency receiving and conversion, but it does not change your UK tax obligations. This guide is for general information only and not tax, legal, or financial advice.

Sources

• GOV.UK – Tax on foreign income: UK treatment of foreign income, residence, reporting, and double-tax relief, checked on 19 August 2026.
• GOV.UK – Check how to register for Self Assessment: HMRC registration timing and the 5 October notification point, checked on 19 August 2026.
• GOV.UK – Self Assessment tax returns: Deadlines: main filing and payment deadlines, checked on 19 August 2026.
• GOV.UK – Self Assessment: Foreign (SA106): supplementary pages for foreign income and gains, checked on 19 August 2026.
• GOV.UK – RDR3 Statutory Residence Test: UK residence and split-year guidance, checked on 19 August 2026.
• GOV.UK – Tax treaties: official UK tax treaty collection, checked on 19 August 2026.
• GOV.UK – 4-year Foreign Income and Gains regime: eligibility and scope of the post-6 April 2025 regime, checked on 19 August 2026.
• Low Incomes Tax Reform Group – UK tax for UK residents on foreign income and gains: practical explanation of domestic rules, treaties, and relief, checked on 19 August 2026.
• Wise – Receive and request money from abroad: Wise UK receiving options and supported account details at a high level, checked on 19 August 2026.
• Wise – Fees for receiving and adding money: receiving costs by route and currency, checked on 19 August 2026.
• Wise Help Centre – What payments can I receive in each currency?: payment types by currency and route, checked on 19 August 2026.