Publication date: 06.02.2026
My name is Irina Sidorova and I am a lawyer based in London. I have over 18 years of experience in law and prior to moving to the UK I specialized in litigation, corporate support, contract analysis and drafting, and commercial legal support. My expertise includes a detailed analysis of legislative changes and their effective application to protect clients' interests. Thanks to my strategic approach, knowledge of the law and practical experience, I help to avoid legal risks and achieve stability in legal matters.
The process of addressing double taxation issues between Ukraine and the United Kingdom has its own specifics, depending on the type of income, tax resident status, and the source country of the income. Individuals and businesses earning income in both jurisdictions are not always required to pay taxes twice. If a person or company has the status of a tax resident in one of the countries, they can benefit from the provisions of the international double taxation avoidance agreement. However, in cases where income is earned simultaneously in Ukraine and the United Kingdom, or part of the profit is subject to taxation in both countries, proper documentation becomes mandatory.
Question
How is double taxation regulated between Ukraine and the United Kingdom?
Answer
If an individual or company earns income in both countries, it is necessary to consider tax resident status and the type of income. According to the double taxation avoidance agreement, taxation is applied on the following principle: income is taxed in the source country, and the country of residence provides a credit or exemption for that income. The process includes:
- Determining tax resident status and preparing supporting documentation;
- Analyzing the source of income and identifying income taxable in both countries;
- Submitting tax returns and other documents to the tax authorities of Ukraine and HMRC in the United Kingdom;
- Obtaining approvals or certificates to confirm the right to avoid double taxation;
- Maintaining accounting records and paying taxes considering the credit or exemption.
For companies with international operations and individuals working as freelancers or earning income from foreign sources, consulting a tax advisor and preparing additional agreements or supporting documents showing tax payments in the first country may be required.
Important documents to have on hand
For proper double taxation regulation, it is recommended to prepare:
- Tax returns and income documents in Ukraine;
- Tax documents and income certificates in the United Kingdom;
- Proof of tax resident status in one of the countries;
- Bank statements confirming the receipt of income;
- Contracts with employers or clients indicating the source of income.
- Accurate documentation helps avoid double taxation, penalties, and additional audits by tax authorities.
Question
What should be done in case of discrepancies or doubts?
Answer
If an individual or company discovers that taxes paid in one country were not accounted for in the other, it is necessary to:
- Contact a tax advisor or HMRC directly;
- Submit amended tax returns or tax credit claims;
- Provide supporting documents showing tax payments in the other jurisdiction;
- Keep internal records of all correspondence and interactions with tax authorities;
- If necessary, appeal tax authority decisions through the official procedures.
- Timely action helps avoid fines and additional tax assessments.
Important to know
- Double taxation between Ukraine and the United Kingdom is especially relevant for:
- Individuals working remotely or receiving income from foreign clients;
- Companies with international contracts and foreign sales;
- Investors receiving dividends or other passive income from the United Kingdom.
Incorrect application of double taxation avoidance rules, late submission of documents, or lack of proof of tax resident status can result in significant fines and additional tax charges. Regular monitoring of income records and tax information helps maintain financial stability and reputation.
Complying with double taxation rules establishes tax discipline, ensures the legality of income, and increases trust from tax authorities in both Ukraine and the United Kingdom. Consulting a tax advisor helps correctly determine tax resident status, prepare tax returns, avoid reporting errors, and minimize tax risks when paying taxes in Ukraine and the United Kingdom.
