Disregarded Income for Non-Tax Residents Disregarded Income for Non-Tax Residents - Page 2
Page 2 of 2 FirstFirst 12
Posts 11 to 16 of 16
  1. #11

    Respect my authoritah!

    NotAllThere's Avatar
    Join Date
    Aug 2007
    Location
    Far away from HMRC
    Posts
    21,581

    Default

    I stand corrected. Things have moved on.

    Quote Originally Posted by skysies View Post
    Again, I'm interested in knowing what the tax on the DIVIDENDS will be. It seems the dividends are treated in a different way. The income tax on the salary should be paid in the UK. I get that.
    Quote Originally Posted by NotAllThere View Post
    If you earn income, as a non-UK tax resident, on dividends from a UK company, they'll be subject to the tax regime of your home country
    Notwithstanding BB's comment.
    Boomers tend to believe in “freedom of speech”, which is a fascist concept used to spread hateful ideas.Given that hate speech is not possible without free speech, any defence of free speech is a form of hate speech. - Titania McGrath

  2. #12

    bored now

    eek's Avatar
    Join Date
    Jun 2010
    Location
    😂
    Posts
    23,184

    Default

    Quote Originally Posted by skysies View Post
    Again, I'm interested in knowing what the tax on the DIVIDENDS will be. It seems the dividends are treated in a different way. The income tax on the salary should be paid in the UK. I get that.
    What does your accountant say? As this area is complex you really do need to find one with expertise in offshore directors - see my previous post as it's complex and easy to get wrong.
    merely at clientco for the entertainment

  3. #13

    More fingers than teeth

    BlasterBates's Avatar
    Join Date
    Jul 2005
    Location
    1922 Commitee
    Posts
    14,176

    Default

    I don't see HMRC allowing foreigners to come to the UK work for 3 to 6 months and pay no tax because it is distributed as dividends. They expect earnings to be taxed. HMRC would have to clamp down because the implications in lost tax would be considerable.

    I would strongly advise against it.
    Last edited by BlasterBates; 23rd December 2019 at 10:14.
    I'm alright Jack

  4. #14

    Respect my authoritah!

    NotAllThere's Avatar
    Join Date
    Aug 2007
    Location
    Far away from HMRC
    Posts
    21,581

    Default

    Quote Originally Posted by BlasterBates View Post
    I don't see HMRC allowing foreigners to come to the UK work for 3 to 6 months and pay no tax because it is distributed as dividends. They expect earnings to be taxed. HMRC would have to clamp down because the implications in lost tax would be considerable.

    I would strongly advise against it.
    It's like any tax avoidance loophole - there are risks. And it definitely is a loophole, but not one, I think, that's widely exploited.
    Boomers tend to believe in “freedom of speech”, which is a fascist concept used to spread hateful ideas.Given that hate speech is not possible without free speech, any defence of free speech is a form of hate speech. - Titania McGrath

  5. #15

    More fingers than teeth

    BlasterBates's Avatar
    Join Date
    Jul 2005
    Location
    1922 Commitee
    Posts
    14,176

    Default

    Quote Originally Posted by NotAllThere View Post
    It's like any tax avoidance loophole - there are risks. And it definitely is a loophole, but not one, I think, that's widely exploited.
    How do you know it is definitely a loop hole ?

    I think only an accountant would be qualified to advise on that. There could well be restrictions on working yourself for the company from which you are earning tax free dividends. I would not assume it is a loophole unless I had an accountant doing my accounts and being upfront with HMRC about it. There's no point in hiding this from the HMRC because sooner or later they'll enquire.

    There are a large number of foreigners who work seasonally or carry out short projects in the UK, if this was a loophole I would expect it to be exploited on a large scale.
    Last edited by BlasterBates; 23rd December 2019 at 11:54.
    I'm alright Jack

  6. #16

    Respect my authoritah!

    NotAllThere's Avatar
    Join Date
    Aug 2007
    Location
    Far away from HMRC
    Posts
    21,581

    Default

    Quote Originally Posted by BlasterBates View Post
    How do you know it is definitely a loop hole ?
    Experience and talking to accountants over the years. HMRC might choose to see the dividends as income. If uncontested, the OP would accrue a debt to HMRC, that might even be enforceable in his country of residence.

    The OP should, as you say, get professional advice to determine the level of risk.
    Boomers tend to believe in “freedom of speech”, which is a fascist concept used to spread hateful ideas.Given that hate speech is not possible without free speech, any defence of free speech is a form of hate speech. - Titania McGrath

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •