Originally posted by BlasterBates
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
"Inside IR35" but I am not UK tax-resident
Collapse
X
-
-
Originally posted by zerosum View PostThat makes sense. But they cannot demand a certificate of tax residence elsewhere, even though it would make things easier. It is possible -- even if probably inadvisable -- to be not tax resident anywhere. If you haven't spent a single day in the UK, and have evidence to that effect, the rest of the SRT does not even need to be looked at and HMRC could not legitimately withhold a refund. Otherwise why even bother postulating automatic tests and naming them that way.
I am pretty sure that’s not true.
And if it was, and the OP could prove that then HMRC would take the tax anyway as there’s no double tax treaty with ‘nowhere’.
The agency aren’t gonna be interested. They’ll just handle like any normal use case or they’ll bin the contract. It’s not worth their while ballsing around for one pain in the arse contractor.See You Next TuesdayComment
-
Originally posted by zerosum View PostThat makes sense. But they cannot demand a certificate of tax residence elsewhere, even though it would make things easier. It is possible -- even if probably inadvisable -- to be not tax resident anywhere. If you haven't spent a single day in the UK, and have evidence to that effect, the rest of the SRT does not even need to be looked at and HMRC could not legitimately withhold a refund. Otherwise why even bother postulating automatic tests and naming them that way.I'm alright JackComment
-
Originally posted by Lance View PostYou sure it’s possible to not be tax resident anywhere?
I am pretty sure that’s not true.
I think there's a failure to understand in this thread that what HMRC seeks to do is determine if you are tax-resident in the UK. To this end there is the statutory residence test. If you fail (or pass, according to your point of view) one of the automatic tests, nothing else needs to be evaluated and you are not tax resident. There is therefore no provision for clawing tax back. The extent to which they are then going to spend time and valuable resources figuring out where you *were* resident and where you should be paying taxes is highly debatable.
Where I think the confusion comes in is if you *are* resident in the UK, *and* resident somewhere else. This is altogether more of a pickle and where BlasterBates seems to be coming from in his comments, based on the particular circumstances he experienced (but which do not apply in all cases). For example, in this situation, there is a tiebreaker provision in most DTAs that you can be taxed on the basis of your citizenship, if all other proof you supply is inconclusive. In this situation I agree, tax residency certificates and anything else you can possibly think of are a good idea.Comment
-
Originally posted by BlasterBates View PostSure you can provide all sorts of proof, but a simple confirmation from a foreign tax authority is worth an encyclopedia of alternative proof. If HMRC asks for proof and you provide none they'll simply keep the money and force you to take them to court. Of course you'll win but why make your life complicated.Last edited by zerosum; 18 October 2020, 10:01.Comment
-
Originally posted by zerosum View PostThere are countries which will issue you with a tax residence certificate based on very few days indeed. But if you spent e.g. 60 days in that tax base and 150 days in a country with an aggressive tax authority, it's debatable how impressed they'll be. They'll want to know about centre of interests.I'm alright JackComment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment