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Non-resident tax status and coming back to the UK

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    Non-resident tax status and coming back to the UK

    Hi, I'm thinking of starting to work remotely from another EU country. So the client is in the UK, but I will be based outside of the UK.

    I will need to know what happens from a tax point of view if I decide to come back to the UK after some time? I know there could be the issue of a split tax year and that I would get the NT tax code after one year residing outside the UK.

    When I come back, could HMRC try to tax some of my earnings from working remotely?

    #2
    When you are outside the UK, will you be working through your own Ltd, through an umbrella, or how?

    Do you know which country you are thinking of working from?

    You've asked several questions about this recently, but not really given us the full picture of your plans.
    …Maybe we ain’t that young anymore

    Comment


      #3
      Originally posted by WTFH View Post
      When you are outside the UK, will you be working through your own Ltd, through an umbrella, or how?

      Do you know which country you are thinking of working from?

      You've asked several questions about this recently, but not really given us the full picture of your plans.
      Yes, I posted a related question. Regarding your first question, I plan to work through an umbrella company from the UK.

      Comment


        #4
        Originally posted by skysies View Post
        Yes, I posted a related question. Regarding your first question, I plan to work through an umbrella company from the UK.

        Have you found a UK umbrella company that is happy to do that after 31/12/20?
        …Maybe we ain’t that young anymore

        Comment


          #5
          Originally posted by WTFH View Post
          Have you found a UK umbrella company that is happy to do that after 31/12/20?
          No, still in the process. This is all unchartered waters.

          Comment


            #6
            Originally posted by skysies View Post
            No, still in the process. This is all unchartered waters.

            I'd probably worry about being able to do that before worrying about the what if scenario that one day you decide to come back. Not just tax, but I suspect you'd also need to consider NI contributions
            …Maybe we ain’t that young anymore

            Comment


              #7
              Originally posted by skysies View Post
              Hi, I'm thinking of starting to work remotely from another EU country. So the client is in the UK, but I will be based outside of the UK.

              I will need to know what happens from a tax point of view if I decide to come back to the UK after some time? I know there could be the issue of a split tax year and that I would get the NT tax code after one year residing outside the UK.

              When I come back, could HMRC try to tax some of my earnings from working remotely?
              I'm surprised you are still confused by this.

              1. full tax years outside of the UK will not attract UK tax. At all.
              2. if you leave midway during a tax year, with the intention of being away for the next tax year, you'll get the split year concession for the tax year you leave.
              3. if you've been away for the previous tax year and return, you'll get the split year concession for the tax year you return.
              4. if you leave midway during a tax year, with the intention of being away the next tax year, but return before it is over, you will be liable for tax on earnings abroad for the entire tax year you left and entire tax year you return. Tax paid abroad will be credited to you, if there's a dual taxation treaty with the country.
              5. You may return temporarily but you have to be very careful, or if you're investigated, HMRC could decide you were resident.

              All clear now?

              Or will you start another thread asking essentially the same questions? If so, I suggest you may need to rethink your plans...
              Down with racism. Long live miscegenation!

              Comment


                #8
                If you don't stay away for a full year, then your earnings will probably be taxed but they will take into account tax paid in the country you were working remotely, so you won't pay the full rate.
                I'm alright Jack

                Comment


                  #9
                  Originally posted by BlasterBates View Post
                  ... they will take into account tax paid in the country you were working remotely...
                  And here is the crux of the matter, if all these questions were about some wheeze to avoid paying tax anywhere, he’s in for a shock.

                  But he won’t admit that, instead spin out some story with vague answers, avoiding the truth.
                  …Maybe we ain’t that young anymore

                  Comment


                    #10
                    Why would anyone come back to UK?


                    Sent from my iPhone using Contractor UK Forum

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