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Tax Planning

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    Tax Planning

    Have run into a problem and I'd welcome opinions. This isn't attempting to evade tax - simply to efficiently plan therefore.

    On August 31st 2009 I'll be moving to a new contract and moving overseas spending the next few years between:
    • UK
    • Malta
    • Czech Republic

    ... in none of which I'll spend the mandatory 183 days a year to become tax resident.

    Bon. Mes amis, where do I pay tax, and how do I avoid getting arse raped by Hector?

    #2
    Originally posted by Menelaus View Post
    Have run into a problem and I'd welcome opinions. This isn't attempting to evade tax - simply to efficiently plan therefore.

    On August 31st 2009 I'll be moving to a new contract and moving overseas spending the next few years between:
    • UK
    • Malta
    • Czech Republic

    ... in none of which I'll spend the mandatory 183 days a year to become tax resident.

    Bon. Mes amis, where do I pay tax, and how do I avoid getting arse raped by Hector?
    1. There are other criteria than 183-day presence which can establish tax residence, such as having house, family, economic interests, etc.
    2. Hector will not normally admit that you are no longer tax resident in the UK until you establish tax residence somewhere else.
    3. Of course you will still be liable to tax on the income depending on its source, irrespective of your tax residence.
    4. You do not normally decide where to pay tax, the tax people decide for you.

    Comment


      #3
      Originally posted by expat View Post
      1. There are other criteria than 183-day presence which can establish tax residence, such as having house, family, economic interests, etc.
      2. Hector will not normally admit that you are no longer tax resident in the UK until you establish tax residence somewhere else.
      3. Of course you will still be liable to tax on the income depending on its source, irrespective of your tax residence.
      4. You do not normally decide where to pay tax, the tax people decide for you.
      Thanks for this.

      1. Economic interests are in both UK, Russia and CZ
      2. Hector can go **** himself.
      3. Thanks - understood
      4. See 2., above

      Anyone know a good tax accountant?

      Comment


        #4
        http://www.lubbockfine.co.uk/interna...x-planning.asp

        Give em a call and say the Prawn sent you.

        Comment


          #5
          Originally posted by expat View Post
          1. There are other criteria than 183-day presence which can establish tax residence, such as having house, family, economic interests, etc.
          2. Hector will not normally admit that you are no longer tax resident in the UK until you establish tax residence somewhere else.
          3. Of course you will still be liable to tax on the income depending on its source, irrespective of your tax residence.
          4. You do not normally decide where to pay tax, the tax people decide for you.
          No you are confusing residency with domicile. Fail.

          http://www.hmrc.gov.uk/CNR/faqs_general.htm#2nr

          Residency is very simple.

          Comment


            #6
            From HMRC:

            If you become treated as non-resident, you will normally only be taxable on your income arising in the UK.
            In other words wherever you're billing, the tax authorities will expect tax, or needs to be accounted for in some way, i.e. taxed in another place.
            I'm alright Jack

            Comment


              #7
              Originally posted by BlasterBates View Post
              From HMRC:



              In other words wherever you're billing, the tax authorities will expect tax, or needs to be accounted for in some way, i.e. taxed in another place.
              No it doesn't. HMRC couldn't give a **** about your tax arrangements abroad. If tax is due here (the income is earned here) you pay it here. If you are non-resident and the income is earned abroad (your company is not a UK company), there is no UK tax.

              They don't want to know if you are paying tax abroad. That's your problem not theirs.

              Comment


                #8
                But they do want to know if you're not paying tax abroad. If they find that you're not tax resident anywhere, they can take the view that they'll have your ill-gotten gains then.
                Down with racism. Long live miscegenation!

                Comment


                  #9
                  Originally posted by DimPrawn View Post
                  No it doesn't. HMRC couldn't give a **** about your tax arrangements abroad. If tax is due here (the income is earned here) you pay it here. If you are non-resident and the income is earned abroad (your company is not a UK company), there is no UK tax.

                  They don't want to know if you are paying tax abroad. That's your problem not theirs.
                  Voice of experience? I think not.

                  (normally)
                  You are liable for local tax if you are paid locally. The local tax authority may decide not to bother for short term engagements.
                  183 days in country is the norm for becoming tax liable for sure.
                  If you have not become tax resident (away for a whole UK tax year) abroad then the UK tax man will want tax returns. He will tax you on your global earnings.
                  If there is a double taxation agreement in place then any local tax can be offset against UK tax.

                  [Over simplified]
                  I am not qualified to give the above advice!

                  The original point and click interface by
                  Smith and Wesson.

                  Step back, have a think and adjust my own own attitude from time to time

                  Comment


                    #10
                    Originally posted by The Lone Gunman View Post
                    Voice of experience? I think not.

                    (normally)
                    You are liable for local tax if you are paid locally. The local tax authority may decide not to bother for short term engagements.
                    183 days in country is the norm for becoming tax liable for sure.
                    If you have not become tax resident (away for a whole UK tax year) abroad then the UK tax man will want tax returns. He will tax you on your global earnings.
                    If there is a double taxation agreement in place then any local tax can be offset against UK tax.

                    [Over simplified]
                    It is the voice of experience. I can't believe you a making it so complicated.

                    Call the tax planning accountants. It's a few forms. Yes, for the 1st year you have to send a tax return, after the first year, you don't need to fill one.

                    You don't pay tax on you world wide income if the company generating the income is a non UK company and you are not resident.


                    Jeez.

                    Comment

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