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Financial Questions and Answers Advice about financial matters like tax rules when working abroad etc.

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Old 05-01-2008, 12:17 AM   #11 (permalink)
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Quote:
Originally Posted by covert munkey View Post
Hello folks,

Quick question for you......Earning tax free wages whilst workin abroad?

How does it work? How long you got to be out the country for?

All the best

CM
Just to clear something up for those of you reading this thinking you dont have to pay tax on earnings abroad. There are very few tax havens (countries that have low or no income tax) in the world. You could satisfy the criteria of UK non-resident and therefore not be liable to UK tax but still have to pay tax to the country where you are working!
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Old 05-01-2008, 12:31 AM   #12 (permalink)
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the situation with globalrisksecurity was because it was a french registered company lol,we would stillhave to pay tax to them BUT if their tax was @ a lower rate than the uk then the uk tax man would expect you to pay the outstanding amount to bring it up to the same rate as the uk,thats if you left the uk after the 5th april
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Old 05-01-2008, 12:47 PM   #13 (permalink)
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Quote:
Originally Posted by ctops View Post
Just to clear something up for those of you reading this thinking you dont have to pay tax on earnings abroad. There are very few tax havens (countries that have low or no income tax) in the world. You could satisfy the criteria of UK non-resident and therefore not be liable to UK tax but still have to pay tax to the country where you are working!
Isle of Mann....
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Old 05-01-2008, 01:13 PM   #14 (permalink)
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Hey there,

I worked on a Maritime gig for about 2 years so the rules may be different. If you email me I can send you the same info I forwarded to a buddy. bevan7170@hotmail.co.uk. Best of luck Dave
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Old 07-01-2008, 06:55 PM   #15 (permalink)
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Lots of various advice there. I used huston & Co in newtonards rd, belfast. Huston & Co - Index they are former tax inspectors, ex Rmp TA and appear to know their stuff as they deal with loads of contractors. They are very expensive compared to a 'normal' accountant though. At last count they are charging £600 to do your tax return. They do seem competent though.
No dramas working away as long as you stick to the 90 days in UK only and keep a record for possible inspection i.e. boarding cards etc.
If you do a partial year away then you get an equal proportion of your days in the UK i.e. if you declare yourself Non Resident half way through the tax year (50%), then you get 50% of the allowed days in UK (45) and that is how they work it apparently.
I don't think it is that complex an issue as long as you screw the nut, as the punishment is financially not worth it.
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covert munkey (08-01-2008)
Old 01-02-2008, 05:42 PM   #16 (permalink)
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To qualify as UK non resident for tax purposes you have to do a full tax year Apr - Apr out the country although in that year you are allowed to return to the UK for 90 days. Before your travel days did not count as being in country ie if you left the UK on the Monday then that counted as you being out the country, but from this April if you leave the UK on a Monday then it won't count as you being out it will be taken from the next day.
If you go abroad after or before April no dramas BUT you will still have to do a full tax year out the country........Say you leave the country in Sep then you will be allowed a proportion of the 90 days in the UK (45) till April then 90 days till the following April its all evened out at the end so dont feel you have to have 45 days in the first 6 months then the 90 for the Apr=Apr.
Any days not used are carried over to the next year.
If you have to return to the UK for compassionate reasons then these days dont count.
If you do a course on leave in the UK relevant to your current role then again these days dont count, (get a letter from your employer stating this)
I do know of someone who didnt bother getting his days right and was collared off the tax man for 40K after working abroad for 3 years.
Bit long winded but hope it helps.
As for paying voluntary national insurance......to qualify for a full state pension you need to have paid up for 44 years into NI now its only 30 years..............
If you are working abroad only for a few years not worth bothering about
Craig
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Old 01-02-2008, 05:43 PM   #17 (permalink)
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To qualify as UK non resident for tax purposes you have to do a full tax year Apr - Apr out the country although in that year you are allowed to return to the UK for 90 days. Before your travel days did not count as being in country ie if you left the UK on the Monday then that counted as you being out the country, but from this April if you leave the UK on a Monday then it won't count as you being out it will be taken from the next day.
If you go abroad after or before April no dramas BUT you will still have to do a full tax year out the country........Say you leave the country in Sep then you will be allowed a proportion of the 90 days in the UK (45) till April then 90 days till the following April its all evened out at the end so dont feel you have to have 45 days in the first 6 months then the 90 for the Apr=Apr.
Any days not used are carried over to the next year.
If you have to return to the UK for compassionate reasons then these days dont count.
If you do a course on leave in the UK relevant to your current role then again these days dont count, (get a letter from your employer stating this)
I do know of someone who didnt bother getting his days right and was collared off the tax man for 40K after working abroad for 3 years.
Bit long winded but hope it helps.
As for paying voluntary national insurance......to qualify for a full state pension you need to have paid up for 44 years into NI now its only 30 years..............
If you are working abroad only for a few years not worth bothering about
Craig
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Old 01-02-2008, 05:55 PM   #18 (permalink)
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A very pertinent question and one that has been bothering me for a while. I have consulted my accountant below and she sent me the form to register as a non resident. Gents, feel free to use it for non residency issues.
1) register with a reputable accountant dealing in security personnel and conversant with tax laws.
2) fill in the attached form and send it back to your accountants.
3) Go earn your pennies and stay low and move fast.
4) let your accountant worry and deal with the the tax man and saving your ass.

All you need to worry about is applying the sun cream and keeping the other half from blowing your load....ooo err ( I mean money)

Mrs Anna Cooperwhite
Whittaker & Co
9 Gas Street
Newtown
Wales UK
SY16 2AD
Whittaker & Co . Accountants and Business Consultants
Attached Files
File Type: pdf non resident.pdf (374.2 KB, 11 views)
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covert munkey (09-02-2008)
Old 01-02-2008, 07:14 PM   #19 (permalink)
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My advice is do your accounts online. Easier, quicker, costs nothing. Not the answer you wanted covert but thought i would give a little input.
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Old 18-02-2008, 12:56 PM   #20 (permalink)
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What an interesting read, just want to add to this, by advising, that I have dealt with this field since 2003, I also have a direct link with the Head of Non-Residency within HM Revenue so should areas concerning any changes to Non_Residency come into place then I get to hear them directly from the horses mouth, which clears up a lot of issues straight away.

So onto Non-Residents rules that apply to earnings being tax exempt. The 90 day rule!!!

I have to start by saying every case is individual, but when calculating your allowances, they are calculated within a complete tax year, which runs fron April to April.

However, should you your first year working overseas date began after April in say July, then split year treatment can be claimed.

Again each case is individual and I am more than happy to look at this for you.
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