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Working remotely for a UK client from an EU country

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    #41
    Originally posted by ladymuck View Post
    Yes, but rather this Tax on foreign income: UK residence and tax - GOV.UK "Split Year Treatment".
    Down with racism. Long live miscegenation!

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      #42
      Originally posted by skysies View Post
      Well, that won't be so easy to do. I understand that I would get (if I ever do) the NT code after 1 year or so living and working abroad. But not the moment I start working remotely from outside the UK.

      So how can I convince either the client or the agency in the first couple of months (or year) that they should not be doing deemed payments? The only thing that would have changed in that period would be my location, but not my tax status, right? How could they be convinced that I should be outside IR35? Just by telling them that I hope to get (in a year) the NT tax code?

      That's why I keep asking if I could claim retrospectively the paid taxes working inside IR35 once I get the NT tax code.
      As jamesbrown says you fill out a p85 enter a leaving date and you will be a non-resident from that day on.

      Tax if you leave the UK to live abroad - GOV.UK
      I'm alright Jack

      Comment


        #43
        Originally posted by jamesbrown View Post
        The NT code should apply once you’ve submitted your P85, I think. This would provide relief from PAYE taxes, but not NI. In short, you would avoid a deemed payment with a large chunk of tax removed, but some would be removed, and I’m not sure how easy it would be to get back. The ErNI, probably no chance, but I am not certain.
        To be noted that the HMRC guidance is that if you normally complete a self assessment tax return, then you do not fill in a P85. Your tax resident status and claim for split year treatment is all handled thought the SATR. That works just fine, I've done it. Since contractors all fill in a SATR annually there is no requirement for a P85.
        Public Service Posting by the BBC - Bloggs Bulls**t Corp.
        Officially CUK certified - Thick as f**k.

        Comment


          #44
          Originally posted by Fred Bloggs
          To be noted that the HMRC guidance is that if you normally complete a self assessment tax return, then you do not fill in a P85. Your tax resident status and claim for split year treatment is all handled thought the SATR. That works just fine, I've done it. Since contractors all fill in a SATR annually there is no requirement for a P85.
          If you complete a SATR, then you don't need to complete a P85, but I think the OP would be looking for a timely NT code to pass on to the fee payer, probably well before their SATR is due and I think a P85 is the route to get that.

          Comment


            #45
            Originally posted by jamesbrown View Post
            If you complete a SATR, then you don't need to complete a P85, but I think the OP would be looking for a timely NT code to pass on to the fee payer, probably well before their SATR is due and I think a P85 is the route to get that.
            Unless I am missing something, the OP cannot be granted that until he has been out of the UK for a full tax year after the tax year in which he leaves. You do not get non-UK tax status the day you leave. Read RDR3 very carefully. (For example - Leave the UK April 4th 2019, OP may qualify as non UK tax resident from April 6th 2020. Leave the UK on April 7th 2019 that moves the date back to April 6th 2021. In the meantime, you apply on the SATR and may receive split year treatment for the year of departure. If split year were granted, that would mean you were indeed non tax resident from April 4th 2019 or April 7th 2019. You must also meet the overseas tests in full or your claim for split year and non tax resdiency fails). HTH.

            BTW - This actual personal experience I am recounting here, not just what I read some place.
            Public Service Posting by the BBC - Bloggs Bulls**t Corp.
            Officially CUK certified - Thick as f**k.

            Comment


              #46
              Originally posted by Fred Bloggs View Post
              Unless I am missing something, the OP cannot be granted that until he has been out of the UK for a full tax year after the tax year in which he leaves. You do not get non-UK tax status the day you leave. Read RDR3 very carefully. (For example - Leave the UK April 4th 2019, OP may qualify as non UK tax resident from April 6th 2020. Leave the UK on April 7th 2019 that moves the date back to April 6th 2021. In the meantime, you apply on the SATR and may receive split year treatment for the year of departure. If split year were granted, that would mean you were indeed non tax resident from April 4th 2019 or April 7th 2019. You must also meet the overseas tests in full or your claim for split year and non tax resdiency fails). HTH.

              BTW - This actual personal experience I am recounting here, not just what I read some place.
              I am speaking from personal experience too having done this several times. You are non-resident from the moment your residency ends. Although the determination may be retrospective, the reality applies immediately the conditions are met and the NT coding reflects reality. You seem to be confusing the sequencing of obtaining recognition via an NT code with the facts regarding the statutory residency test, looking backwards. They are two separate things. When I last used a P85, it was possible to have this approved/reflected in advance of departure, but I think it now requires you to be in your non-resident status (i.e., after departure). The OP certainly needs advice on their residency status but, armed with that, they certainly don’t need to wait until the facts have been established looking backwards.

              Comment


                #47
                Originally posted by jamesbrown View Post
                I am speaking from personal experience too having done this several times. You are non-resident from the moment your residency ends. Although the determination may be retrospective, the reality applies immediately the conditions are met and the NT coding reflects reality. You seem to be confusing the sequencing of obtaining recognition via an NT code with the facts regarding the statutory residency test, looking backwards. They are two separate things. When I last used a P85, it was possible to have this approved/reflected in advance of departure, but I think it now requires you to be in your non-resident status (i.e., after departure). The OP certainly needs advice on their residency status but, armed with that, they certainly don’t need to wait until the facts have been established looking backwards.
                Very good, then all the OP has to do is to call HMRC and if anyone answers the phone, he'll then know for certain. That's the only sure way he'll know how it works. I am confident my way worked (and still is working) and you are too. So, at this stage, the OP will have to call HMRC and find out for himself.
                Public Service Posting by the BBC - Bloggs Bulls**t Corp.
                Officially CUK certified - Thick as f**k.

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                  #48
                  Originally posted by Fred Bloggs View Post
                  Very good, then all the OP has to do is to call HMRC and if anyone answers the phone, he'll then know for certain. That's the only sure way he'll know how it works. I am confident my way worked (and still is working) and you are too. So, at this stage, the OP will have to call HMRC and find out for himself.
                  Yeah, calling HMRC probably won't resolve anything. You simply cannot rely on their advice for atypical situations (because they would rather pull something out their **** than say they don't know). OP needs to speak to a professional and not rely on us or HMRC.

                  Comment


                    #49
                    Originally posted by jamesbrown View Post
                    Yeah, calling HMRC probably won't resolve anything. You simply cannot rely on their advice for atypical situations (because they would rather pull something out their **** than say they don't know). OP needs to speak to a professional and not rely on us or HMRC.
                    I think if you ask the HMRC representative on the phone for reference number referring to the conversation, that would carry some weight. As long as the discussion had the desired outcome, of course. For me, it seems very straightforward. Not to rake over previous discussion - But current guidance is that if you do SATRs (and we do) then you do not file a P85. It's all adjusted by SATR, split year, overseas tests, days in the UK working/not working, remaining UK ties, everything. A simple call to HMRC would address that. It's HMRC who decide, not us, not a tax advisor.
                    Last edited by Fred Bloggs; 30 June 2020, 12:23.
                    Public Service Posting by the BBC - Bloggs Bulls**t Corp.
                    Officially CUK certified - Thick as f**k.

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                      #50
                      It isn’t HMRC that decides, it’s Parliament and HMRC frequently has no clue about the legislation that binds them. In contrast, professionals do, so always speak to them first.

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