Income tax when not living in England.

[LC23]

King Herald said:

Just browsing though some copies of old tax returns my tax lady ticked the box as a non resident, even though I don't 'officially' live in another country. I recall reading "resident, but not ordinarily resident" some time ago, but that was when we move back to the UK in 2002.

My status in the Philippines is as a tourist, as that is by far the easiest way to stay here. I could get a residence visa if I had to though.

I need to check exactly where my pension is paid from as well, as that sounds like it will make a difference. It is not from a 401K, as I cashed that out and took the money, though the IRS took 30% first........ I'm making inquiries right now, back later.

Ordinarily Resident status was in place for many years (along with Resident) but was abolished when SRT came in. So from April 2013 onwards you are either resident or not. Prior to that you would see both. You don't have to establish tax residence elsewhere to be considered non resident in the UK.

You should also check your tax residence status in the Philippines.

Edited by LC23 on Saturday 23 July 09:03

[schmunk]

LC23 said:

I haven't covered the US/Philippines angle as you didn't ask on this point so I assume have it covered. Care needs to be taken with US DTAs. They have "savings clauses" which basically allows the countries to "ignore" the DTA for certain income sources and tax based on their domestic law anyway. The US/Philippines DTA is no different. If you need advice on this area then let me know.

The savings clause only allows the US to impose tax on citizens and permanent residents of the US. KingHerald - if this applies to you (and from what I've seen you post, it appears not), there's a whole world of tax pain for you, beyond the scope of this thread...

[schmunk]

LC23 said:

You should also check your tax residence status in the Philippines.

Indeed - it's surprising that you've managed to exist in the Philippines all these years as a "tourist".

[King Herald]

schmunk said:

Indeed - it's surprising that you've managed to exist in the Philippines all these years as a "tourist".

Just about everybody gets 30 days visa waiver on entry, then you can go,to immigration office and simply extend it all the way up to 3 years if you choose.

I was in and out every five weeks for years, until I retired last year, then I did 8 months straight.

I can for a residence visa if I want, but lots of tedious dicking around.

Or if I simply fly in with my wife I get a 12 month 'balikbayan' visa.