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Financial Questions and Answers Thread, Tax free wages-How does it work? in Ask an Expert; Hello folks, Quick question for you......Earning tax free wages whilst workin abroad? How does it work? How long you got ...

Tax free wages-How does it work?

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Old 02-01-2008, 05:56 PM
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Lightbulb Tax free wages-How does it work?

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
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Old 02-01-2008, 06:07 PM
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You are only allowed 90 days in the UK per year, travelling days not included. Get a good accountant thats my advice
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Old 03-01-2008, 10:50 AM
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i dont know if anyone knows better but my accountant has told me along with my tax office that if you leave the uk after the 5th april you are still liable for uk tax, you have to be out of the country a full tax year before it becomes taxfree ie before 5th april retuning after 5th april, alot of guys seem to think im wrong but ive looked into this very deeply even abbey expatriates services were surpprised to find this out,so your first job abroad needs to start before 5th april,im open to arguments from all the lads in the pit as they seem to be the only ones who have trouble getting their heads round this cheers
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Old 03-01-2008, 11:20 AM
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Quote:
Originally Posted by dogbomb View Post
i dont know if anyone knows better but my accountant has told me along with my tax office that if you leave the uk after the 5th april you are still liable for uk tax, you have to be out of the country a full tax year before it becomes taxfree ie before 5th april retuning after 5th april, alot of guys seem to think im wrong but ive looked into this very deeply even abbey expatriates services were surpprised to find this out,so your first job abroad needs to start before 5th april,im open to arguments from all the lads in the pit as they seem to be the only ones who have trouble getting their heads round this cheers
Thats correct dog... It is 90 days out of the country in a TAX YEAR... Which unlike the normal one commences on the 5th April... I fell foul of the tax man some 7 years ago and had to sell holiday home to sort him out and he still hauls me in for an interview every year....

They seem to have very, very long memories!! So all, be very carefull...
I always found a swift holiday in thailand or somewhere would sort out any short fall in time out of the country....
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Old 03-01-2008, 12:41 PM
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Get online with the HMRC and check out IR20. However new regulations coming in April will change the way the 90 days are used...thanks to the Gaines-Cooper case.

Check this site out for advice

Tax Tips Forum - TaxationWeb
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Old 03-01-2008, 12:48 PM
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Third attempt to post this!
The area of non-residency is far from black and white and I would advise using the knowledge of a specialist accountant in this field (I can suggest a couple if you are interested). The key is to satisfy all the criteria of non-residency, however even then it is not guaranteed that you will not pay tax (a few recent cases have shown this)!
www.hmrc.gov.uk/cnr/faqs_general.htm is good for a heads up.
To clear up any confusion (or add to it!), as I understand if you have satisfied the criteria and leave after 5th April (eg August), the time from the 5th April to when you become non-resident (eg August) is still liable for tax and that year will then be a “split tax year.” This is also the case if an individual returns to the UK having been non-resident.
Impossible to cover in one post!!!!
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Old 03-01-2008, 12:51 PM
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Indeed, the only real answer is a good accountant.. I wish I had got one far earlier than I did. Had one for over 6 years now and, despite being in the taxmans ledger of doom, Ive been ok since his arrival.
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Old 03-01-2008, 01:26 PM
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ctops,

Good advice mucker, if you would be so kind to post the details of any recommended accountants. What i'll do is give him/her an email and then get back to you all.

CM

PS. That goes for the rest of you gents. If you have any recommendations i'll give them a bell. Who do guys go to at the mo? If you want ill tell them you refered me!
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Old 03-01-2008, 02:05 PM
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this is a problem i have encounterted for the last 6 months ,everyone being it accountants or people from inland revenue tax office all seem to have different views on the law so who do you go with,its become a real pain for me as i just dont know who to believe anymore
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Old 04-01-2008, 11:03 PM
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I found the same thing dogbomb. There are lots of differing opinions out there.
I think the only way you can truly guarantee not being liable for uk tax on earnings abroad is to satisfy the criteria of non-residency to the extent of "cutting ties" with the UK. Going the whole way of selling up in the UK and not returning. Of course this is not realistic for many, but I believe this is what the tax man is looking for.
So in my humble opinion if you can get yourself as close to this position as possible you should be ok!
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