Billing from abroad?

[MarillionFan]

How many of you work in the UK, but pretend to be out of the UK for tax purposes?

Met a few contractors in the past who do this and basically just lie?

Anyone doing this?

[meridian]

Work in the UK but am resident outside the UK for all purposes incl tax, legitimately though not a lie.

Fly in Tuesday, back home Thursday, so at the moment it only counts as one day a week on UK soil.

[NotAllThere]

I am domiciled, and ordinarily and resident, and resident outside of the UK.

I've worked once in the UK, for three months, on a direct contract. But, despite trying really hard to understand and get clarification, I've no idea how to account for tax for UK contracts - fly in Monday, fly out Friday.

I've never met anyone who pretends to do this, and I'd probably tip of the tax authorities someone who did.

Avoidance is fine, but who'd trust a tax evader? I wouldn't want to work with them.

[tim123]

How many of you work in the UK, but pretend to be out of the UK for tax purposes?

Met a few contractors in the past who do this and basically just lie?

Anyone doing this?

This really doesn't seem to be achievable.

Firstly they are going to have to have a foreign address at which to receive all offical correspondence.

Then they are going to have to convince the agent/client to pay the money offshore.

Then they are going to have to avoid all contact with UK services. What do they do when they are ill?

etc

[tim123]

I've worked once in the UK, for three months, on a direct contract. But, despite trying really hard to understand and get clarification, I've no idea how to account for tax for UK contracts - fly in Monday, fly out Friday.

Option 1) You get your foreign employer to persuade HMG that you are being taxed on these earnings in the other country and they will give you some sort of certificate to avoid UK tax on it.

Option 2) Account for UK tax on the money by filling in an SA form (and sending a cheque). Get a tax payment certificate from HMG and use this to avoid being taxed on the money in the foreign country.

tim

[NotAllThere]

Option 1) You get your foreign employer to persuade HMG that you are being taxed on these earnings in the other country and they will give you some sort of certificate to avoid UK tax on it.

Option 2) Account for UK tax on the money by filling in an SA form (and sending a cheque). Get a tax payment certificate from HMG and use this to avoid being taxed on the money in the foreign country.

tim

Option 1) My employer is my GmbH. And I, the employee am taxed entirely correctly in my resident country. But I understood that my employer needs to pay tax on the profit made in the UK.

[tim123]

Option 1) My employer is my GmbH. And I, the employee am taxed entirely correctly in my resident country. But I understood that my employer needs to pay tax on the profit made in the UK.

But you also need to account for personal tax in the UK if HMG don't let you off because it is fully paid back home.

The requiremt to pay UK Tax (if you meet the criteria) is statutory, HMRC letting you off is a concession that they don't have to allow.

I very much doubt (but I don't actually know) that they will give this concession to the controllling director of an unlisted company, BICBW.

tim

[Fishface]

How many of you work in the UK, but pretend to be out of the UK for tax purposes?

Met a few contractors in the past who do this and basically just lie?

Anyone doing this?

oh good greif

UK tax is based on domicility - you cannot 'pretend' domicility.

you were lied to.

[BlasterBates]

If you fly in and fly out legally you're taxed where you work. However you'll probably also be tax resident elsewhere, i.e. where you live, you then declare the earnings, and on most earnings there is no additional tax to pay, particularly in Europe.

Some contractors try it on and pretend not to be resident, but one day a tax inspector might arrest you. The bill can then be quite huge as it will also include VAT and will disregard any tax you paid elsewhere.

[tim123]

oh good greif

UK tax is based on domicility - you cannot 'pretend' domicility.

you were lied to.

UK tax is based upon *residence* modified by domicility .

tim