Tax on Earnings Overseas

[AnthonyQuinn]

Was just going through the article by the tax erpert who clarifies that even if you are predominantly outside the UK and are making your living overseas you still have to pay tax here if your social life is centread around here. Like having a family here.

This is clearly an overbearing law. One's family is not the state's business. Where they live shouldnt concern anyone.

Does anyone know how HMRC hopes to find out about earnings in, say, Dubai?

[Fred Bloggs]

Your bank in Jersey/IoM/Switzerland etc... will tell them.

[expat]

Was just going through the article by the tax erpert who clarifies that even if you are predominantly outside the UK and are making your living overseas you still have to pay tax here if your social life is centread around here. Like having a family here.

This is clearly an overbearing law. One's family is not the state's business. Where they live shouldnt concern anyone.

Does anyone know how HMRC hopes to find out about earnings in, say, Dubai?

They are not bothered where your family live, they are bothered where you live. If your family live here then they tend to assume that you live here too. That is nothing to do with where you lay your head while working, and everything to do with where your real home is.

Thay are not talking about where your aunts and uncles reside, they are talking about your home and hearth. If you want to argue that your family may live in the UK but you have no real connection with it yourself, you are free to do that. But it had better be good.

[AnthonyQuinn]

Your bank in Jersey/IoM/Switzerland etc... will tell them.

and how will they know which bank to ask?
Hector - 'Does Mr Fred Bloggs have an account in your bank?
US Bank - Yes
Hector - Can I have his bank statement please?
US Bank - There are dozens of Fred Bloggs. Who do you want?
Hector - From 23 Oxford Street, London.
US bank - No one with that address.
Hector - NI number ER121213213
US bank - Whats an NI number??
Hector - Send me the statements for all Fred Bloggs
US bank - Bugger off.

Is there any link between an NI number and say, US social security number?? No.

Do they know where you have been when you are outside the UK?
No.

Can they find out?
No. Unless they issue a red corner notice.

[Fred Bloggs]

and how will they know which bank to ask?
Hector - 'Does Mr Fred Bloggs have an account in your bank?
US Bank - Yes
Hector - Can I have his bank statement please?
US Bank - There are dozens of Fred Bloggs. Who do you want?
Hector - From 23 Oxford Street, London.
US bank - No one with that address.
Hector - NI number ER121213213
US bank - Whats an NI number??
Hector - Send me the statements for all Fred Bloggs
US bank - Bugger off.

Is there any link between an NI number and say, US social security number?? No.

Do they know where you have been when you are outside the UK?
No.

Can they find out?
No. Unless they issue a red corner notice.

Seems to me like you didn't really want any answers to your question except for the ones you wanted to hear.

[questiontime]

Do they know where you have been when you are outside the UK?
No.

Can they find out?
No. Unless they issue a red corner notice.

You really believe it. How about your passport?

With a non-EU country's bank, HMRC may not be able to get the details easily as they can from a EU bank.

You don't need to declare anything on the tax returns at all and you may get away with it. But clearly that is tax evasion and is not legal.

An international tax advisor will be able to guide you on decreasing your tax liability.but those advisers are expensive.

[SizeZero]

As an American National, you have to file returns in both countries anyway, don't you? Unless you're screwing both the IRS and HMRC over ... at which point, I'm so glad I'm not in your shoes.

[lxt04]

and how will they know which bank to ask?
Is there any link between an NI number and say, US social security number?? No.

There's a link between passport number and US social security number. Because to get an SSN, you have to provide either proof of citizenship (which you don't have, because then you wouldn't be asking this question) or your passport/visa/green card (which, guess what, is linked back to your original passport).

Here's some news for you: several large US banks are now owned by the British government, thanks to the bailout. Many US banks do significant business in the UK. Think about it.

As an American National, you have to file returns in both countries anyway, don't you? Unless you're screwing both the IRS and HMRC over ... at which point, I'm so glad I'm not in your shoes.

Yep - and the IRS return is due in...9 days, I think. In fact, Americans have it even worse - if you're an american citizen, all of your foreign income is subject to tax, regardless of where you are living and how long you lived there. There's no residency test - even if you haven't lived in the US for a large number of years, you're still going to be paying income tax to the IRS above a certain level.

[SueEllen]

Was just going through the article by the tax erpert who clarifies that even if you are predominantly outside the UK and are making your living overseas you still have to pay tax here if your social life is centread around here. Like having a family here.

This is clearly an overbearing law. One's family is not the state's business. Where they live shouldnt concern anyone.

Solution for you- divorce your wife.

Unlike certain MPs i.e. Harriet Harman, the majority of people use common sense and custom and practise to realise that if you are married then unless you formally declare you have split up, your main residence is where your spouse is.

[BlasterBates]

If you're working say one or two months of the year in Dubai, you'll get away with it, that is unless someone snitches

If you're not paying any tax, because you are working in Dubai, then a flag will appear on the computer screen, and a tax official might ask you why you haven't filled out a tax return, that might get awkward.

If you "leave" the country and your wife stays, a tax official might start sniffing round your wife, and asking questions about you, like why doesn't she hand in a tax return, and are you "still around".

So yes you can get away with it but the best bet would be to leave the UK and live in Dubai with your wife.

In you're working in a country with a Double Taxation Treaty, then it doesn't matter anyway because you're only taxed once.