Tax free? How many days in the UK?
Discussion
Been a 'normal' employed taxpayer my whole life.
Never done a tax return or used an accountant etc.
Considering a job overseas for a few years.
Will retain my house in the UK (my Mrs will still live in the UK)
How many days per year can I spend in the UK and not be considered a UK taxpayer? Is it that simple? If not, where do I start?!
Thanks in advance...
Never done a tax return or used an accountant etc.
Considering a job overseas for a few years.
Will retain my house in the UK (my Mrs will still live in the UK)
How many days per year can I spend in the UK and not be considered a UK taxpayer? Is it that simple? If not, where do I start?!
Thanks in advance...
Hmmm seems quite complex as I'd feared!
I'd be in the UK approx 90 days (job is 270 days) , could reduce that by 20 ish days with holidays if req'd but I have to retain my UK property otherwise the Mrs will be homeless!
Don't think the job will be worth the hassle if I get clobbered for UK tax as well.
I'd be in the UK approx 90 days (job is 270 days) , could reduce that by 20 ish days with holidays if req'd but I have to retain my UK property otherwise the Mrs will be homeless!
Don't think the job will be worth the hassle if I get clobbered for UK tax as well.
DuraAce said:
Don't think the job will be worth the hassle if I get clobbered for UK tax as well.
You don't suffer tax in both countries. There are "double taxation treaties" whereby you essentially get a tax credit in UK for tax you have paid in the country where you work.https://www.gov.uk/tax-foreign-income/taxed-twice
If we could all escape tax simply by getting a job abroad it would soon become a popular sport!
A friend was working for a foreign company and also spending lots of time out of the UK. Lots of people kept suggesting to him that he could avoid tax, and he summed it up like this - If you aren't a resident in the UK then you need to be a resident somewhere else and pay somewhere else's Tax.
Now I get that their are countries that are better for tax than the uk, but you would need to prove to HMRC that you are in permanent residence there, by renting or buying a property or something and paying tax there.
I/he could have been completely wrong, therefore you need proper advice and not randoms on the internet telling you what you want to hear, as messing this up will cost a lot.
Now I get that their are countries that are better for tax than the uk, but you would need to prove to HMRC that you are in permanent residence there, by renting or buying a property or something and paying tax there.
I/he could have been completely wrong, therefore you need proper advice and not randoms on the internet telling you what you want to hear, as messing this up will cost a lot.
trickywoo said:
I think to initially qualify you need to be out of the country for 365 continuous days. After that as long as you are in the uk for 182 days or less in a year you can expect not to need to pay UK income tax.
is the reason you don't take internet advice, but get proper advice....... (sorry tricky)Signed : A tax free non-resident......
t place.hast2 said:
A friend was working for a foreign company and also spending lots of time out of the UK. Lots of people kept suggesting to him that he could avoid tax, and he summed it up like this - If you aren't a resident in the UK then you need to be a resident somewhere else and pay somewhere else's Tax.
Now I get that their are countries that are better for tax than the uk, but you would need to prove to HMRC that you are in permanent residence there, by renting or buying a property or something and paying tax there.
I/he could have been completely wrong, therefore you need proper advice and not randoms on the internet telling you what you want to hear, as messing this up will cost a lot.
You/he are..... HMRC generally are not interested once you prove you are not resident in the UK.Now I get that their are countries that are better for tax than the uk, but you would need to prove to HMRC that you are in permanent residence there, by renting or buying a property or something and paying tax there.
I/he could have been completely wrong, therefore you need proper advice and not randoms on the internet telling you what you want to hear, as messing this up will cost a lot.
It can however be a complex area based upon you precise circumstances, however I've always found it very simple & straightforward..
And if you are a resident and tax liable in that country you will have to pay up regardless of if you paid UK tax, and if you paid the UK tax in error then there would be no offset either in a tax treaty or unilaterally, so just paying UK tax regardless is not good advice.
I thought the new rules were you had to be out a complete tax year.
I have a letter from the revenue agreeing I don't need to file, these are no longer given so mine is copied and filed carefully. it costs me 200 pound a year for PWC to do all my tax affairs, much better than internet advice. Although the capital gains advice from Eric was spot on.
I thought the new rules were you had to be out a complete tax year.
I have a letter from the revenue agreeing I don't need to file, these are no longer given so mine is copied and filed carefully. it costs me 200 pound a year for PWC to do all my tax affairs, much better than internet advice. Although the capital gains advice from Eric was spot on.
To save me starting a new thread, how does it work for someone coming back to the UK after being non resident for many years?
My brother is coming back to the UK mid February this year after working overseas since 2010. His last 18 months have been spent in Dubai. His contract of employment ended 31 December 2017. He's already spent about 21 days in the UK this tax year on holidays.
The Tax Café link implies each tax year is treated in isolation and for each year to be considered non-resident he must have employment abroad for the full tax year. If he meets that criteria he can spend 90 days in the UK.
It seems he fails the employment test, as he was only working for 9 months of the tax year. So, I assume the 90 days is not an issue.
If he fails the test for non residence for 2017-18, does he have to pay tax on all the income he earned whilst overseas? He paid no tax on his income whilst in Dubai.
EDIT: Found the answer; he doesn't have to pay any tax on the Dubai income if it was paid when he was out there
My brother is coming back to the UK mid February this year after working overseas since 2010. His last 18 months have been spent in Dubai. His contract of employment ended 31 December 2017. He's already spent about 21 days in the UK this tax year on holidays.
The Tax Café link implies each tax year is treated in isolation and for each year to be considered non-resident he must have employment abroad for the full tax year. If he meets that criteria he can spend 90 days in the UK.
It seems he fails the employment test, as he was only working for 9 months of the tax year. So, I assume the 90 days is not an issue.
If he fails the test for non residence for 2017-18, does he have to pay tax on all the income he earned whilst overseas? He paid no tax on his income whilst in Dubai.
EDIT: Found the answer; he doesn't have to pay any tax on the Dubai income if it was paid when he was out there
Edited by uknick on Wednesday 17th January 11:47
uknick said:
EDIT: Found the answer; he doesn't have to pay any tax on the Dubai income if it was paid when he was out there
Correct he can apply split year treatment, which he will find identified on the respective form for his tax returnEdited by uknick on Wednesday 17th January 11:47
Residency - looks as though it needs to be less than 183 days per year.
I don't know the answer, but would they be full 24 hours days in the UK?
What about into UK at 9am, then out of the country by 6pm. Is that one day, or does it not count, because it is not a full day?
I just wondered, because a distant neighbour has similar arrangements to OP (wife UK, husband Guernsey). Perhaps part days are more possible though, when a helicopter is available.
I work away and the family live in our house the UK.
On the tax calculator, to see if you are resident for tax purposes, there are 2 sets of 3 questions....
1st set determines if you are resident, and answered 'yes' means that you are. I answer 'yes' to the significant ties question - house and family in the UK.
However, the 2nd set overrides the 1st set and determines if you are not tax resident.
I answer 'yes' to the question 'do you spend less than 92 days per year in the UK' and therefore Im not tax resident.
My fallback position is that I pay the company I work for 'Hypothetical tax' which then means that the company is liable for any tax bill I have globally. As long as I promise to limit their exposure as much as possible
On the tax calculator, to see if you are resident for tax purposes, there are 2 sets of 3 questions....
1st set determines if you are resident, and answered 'yes' means that you are. I answer 'yes' to the significant ties question - house and family in the UK.
However, the 2nd set overrides the 1st set and determines if you are not tax resident.
I answer 'yes' to the question 'do you spend less than 92 days per year in the UK' and therefore Im not tax resident.
My fallback position is that I pay the company I work for 'Hypothetical tax' which then means that the company is liable for any tax bill I have globally. As long as I promise to limit their exposure as much as possible
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