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The short answer
A Nigerian employer will normally pay salary arrears in naira into a Nigerian bank account in your name, after deducting PAYE as it would for any salary. From there you can keep the naira or convert and send it to the UK. Ask for a written breakdown of the period covered, the gross amount and the tax deducted, because both your UK bank and HMRC may want to see it.
How back pay is usually paid
Most Nigerian employers run payroll in naira through a Nigerian bank, so the simplest route, and the one least likely to stall, is payment into your existing Nigerian salary account. If you closed that account before leaving, open or reactivate one in your own name first; a payroll department will rarely pay a third party's account, and you should not ask it to. If you no longer have a BVN-linked account, the Nigeria library explains the BVN route for Nigerians abroad.
Some employers, mainly those with foreign-currency income, can pay abroad directly. That depends on the employer having foreign currency and its bank agreeing to send it. The CBN's 2026 FX Manual eased some outward transfers: Pavestones (via Mondaq, June 2026) says holders of self-funded domiciliary accounts no longer need Form A for outward remittances and can send telegraphic transfers of up to US$10,000 a day. Whether that helps depends on the employer's own accounts, so ask rather than assume.
What to ask the employer for
- A letter on headed paper confirming the amount owed, the months it covers, and the date it will be paid.
- Payslips for each month in arrears, or one payslip that shows the arrears line and the PAYE deducted.
- The account it will be paid into, confirmed in writing, so there is no dispute later about where the money went.
- Any pension contribution owed on the arrears, and confirmation it has been sent to your pension administrator.
- If you left the job, a final settlement statement that lists arrears, leave pay and any deductions.
Keep these as originals or clear scans. They are your proof of the source of funds if you move the money, and your evidence of Nigerian tax if HMRC asks.
Tax in Nigeria
Salary for work you did in Nigeria is Nigerian employment income, so expect the employer to apply PAYE. PwC's summary of the Nigeria Tax Act 2025 (reviewed May 2026) gives the personal income tax bands from 1 January 2026, starting with the first ₦800,000 at 0% and rising to 25% above ₦50 million. Arrears paid in one lump can push the month's deduction up; check the payslip arithmetic against the bands for the period the pay relates to, and ask payroll if the figure looks wrong.
Tax in the UK
This is the part people get wrong. GOV.UK says non-residents only pay UK tax on UK income, while UK residents normally pay UK tax on foreign income too. The UK–Nigeria treaty (Article 15) generally lets employment income be taxed where the work is done. Two questions therefore matter:
- Where were you working when you earned it? Pay for months you worked in Nigeria is Nigerian-source employment income.
- Were you UK resident in the tax year the pay belongs to? If the arrears relate to a period before you became UK resident, or to the overseas part of a split year, the UK position may be very different from pay earned while resident.
Which UK tax year arrears belong to, and how a split year applies, are points to confirm with HMRC or an adviser before you file. If UK tax is due, relief for Nigerian tax paid on the same income is generally available, limited to the UK tax on it. See foreign tax credit relief under the treaty. Information, not advice.
Worked example
Example only. Your former employer owes you four months at ₦600,000 gross. The arrears line is ₦2,400,000. Suppose payroll deducts ₦300,000 PAYE (an illustrative figure; yours depends on the bands and reliefs applied) and ₦0 of other deductions, so ₦2,100,000 reaches your account. Your records should show ₦2,400,000 gross, ₦300,000 tax, the four months covered and the payment date. If you later convert ₦2,100,000 at an example rate of ₦2,000 to the pound, you would have £1,050 before fees.
Moving the money to the UK
Once the arrears are in your naira account, decide whether you need them in pounds at all. If you send money home regularly for family or bills, keeping the naira for those costs avoids converting twice. If you do convert, compare the rate offered with the mid-market rate, check the fee on its own line, and send the money to a UK account in your own name. Large credits can prompt questions from your UK bank, so keep the employer's letter and payslips ready to send. Our guide on a Nigerian salary paid into a UK account covers ongoing pay rather than a one-off lump sum.
When the employer will not pay
If arrears are disputed or delayed, put your claim in writing, keep copies of contracts and appointment letters, and keep your Nigerian account open so there is somewhere for payment to go. Recovering unpaid wages is a Nigerian legal matter; a Nigerian lawyer can advise on demand letters and the courts with jurisdiction. Do not accept a promise to pay into a relative's account unless you have agreed it in writing.
Where Pryme fits
A Pryme Personal Account can be opened from the UK and has naira account details for receiving local transfers, so an employer can pay you as it pays any staff member. The naira stays as naira until you use Swap, where the app shows the rate and the fee before you approve. Verifiable statements, made with VerifyDoc.ai, help when a UK bank asks for proof of where money came from.
Questions people ask
Can my Nigerian employer pay my salary arrears into my UK account?
Only if it has foreign currency and its bank will send it. Most pay in naira into a Nigerian account in your name, which you can then convert.
Will I pay UK tax on salary arrears from Nigeria?
It depends on where you did the work and whether you were UK resident for the period the pay relates to. Non-residents pay UK tax only on UK income.
What documents prove the money is salary?
A letter from the employer stating the amount and period, payslips showing tax deducted, and the bank credit showing the payer.
Can arrears be paid to my mother's account in Nigeria?
Many payrolls will not do this, and it weakens your evidence trail. Use an account in your own name.
Sources
- Mondaq (Pavestones Legal): the CBN Foreign Exchange Manual 2026 (24 Jun 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual taxes (reviewed 29 May 2026) · accessed Oct 2026
- GOV.UK: Tax on foreign income, residence (updated 1 Oct 2026) · accessed Oct 2026
- UK–Nigeria Double Taxation Convention 1987 (GOV.UK PDF) · accessed Oct 2026
- GOV.UK: Tax on foreign income (updated 1 Oct 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.