Working abroad. Where's the tax paid?

[ACEparts_com]

My Nephew is coming out to work in the channel islands periodically (maybe a week a month) and probably won't be 'working' in the uk but still living here.

Now Guernsey revenue say tax and social security payments will have to be paid in guernsey (fair enough) but will any additional tax have to be paid in the UK?

Although it's easy to get the answers from guernsey states, the same cannot be said for UK's inland revenue! In the channel islands tax isn't paid on the first 7000 of earnings from memory. Not sure if that will have any bearing on anything?

[ginettag27]

I'd be trying to get hold of an ex-pat tax expert...

It used to be something like 180 days in a 12 month period... This would then dictate where you are resident, in terms of tax...

Here (after a quick Google of "tax residency"!) seems like a good place to start!!

http://britishexpats.com/articles/finance/uk-tax-r...


HTH!

[sgrimshaw]

ACEparts_com said:

My Nephew is coming out to work in the channel islands periodically (maybe a week a month) and probably won't be 'working' in the uk but still living here.

Where is "here"? Assuming you mean he will still be "living" in the UK then .....

If he goes to work in the Channel Islands, but remains resident in the UK then he will be liable to tax in the UK, regardless of whether he pays tax in the Channel Islands.

HOWEVER - the UK has a Double Taxation Relief Agreement with Guernsey (and Jersey), so basically the UK will "credit" him for the tax paid in Guernsey.

Everything you need to know is here:

http://www.hmrc.gov.uk/pdfs/ir20.htm

You are classed as UK Resident if you spend more than 183 days in the UK during the year.

Simon

Edited by sgrimshaw on Friday 9th November 16:54

[GPSS]

I know from expeirence of living in Spain, after 180 days as a resident of an EU country, youre worldwide income is taxed in the country of your residence, recipricol arrangement exist for most tax brackets, the place to look is good international accounts probably basedin Gurensey.