I have been given a lot of time off recently, I am employed in the UAE and if I spend all of it in the UK I will have spent over 90 days in the uk by the end of this year, not counting the rest of the tax year next year. If I do go over 90 days will I be taxed, I was under the impression if you spend over 90 days for 4 consecutive years you will be taxed?
The shock is that the 90 day rule is basically a myth and that the tax man can come after you if the UK remains your "centre of gravity of your life and interests". And that last little point can include if your children are resident in the UK!!
........also having any UK credit/debit card is now deemed a sufficient connection to the UK to put non-residency into question!!
Do you have any evidence to support that or can you point to any reference? I am non-resident in UK for tax purposes, spending as little time in UK as possible (I declare up to 30 days/year but in fact have spent 0 days in the last 6 years). My pensions are still paid into the UK bank I have used for the past 40 years and they rob me of a disgraceful amount every time I use my debit card. When, last year, I reclaimed the previous 5 year's tax back HMRC paid it into my UK account without question.
Out of interest, if you keep your wealth outside the UK, and rarely travel to the UK, and HMRC still decides you have to pay tax; what could they actually DO, other than write stern letters?
Or is the definition of "resident" purely based on the answer to "does this guy have enough exposure here that we can suck all his money out of him"?
I am a British expat in Holland; my family and girlfriend are in the UK but I have no kids, no house there (I have a house here in Holland), and spend maybe 30 days a year in the UK. I do have a UK bank account (with a paltry few leftover savings), and debit/credit card...but that's it.
This was affecting aircrew living in the Channel Islands, it concerned more than just the crew for Flybe other airlines would have been included although not mentioned in the article below which appeared in the local paper.
GUERNSEY pilots and cabin crew working for Flybe could be forced to pay UK income tax – even though they live in the island and pay tax here. The airline has told crew that following a ruling by HM Revenue and Customs, deductions would have to be made from the July payroll. HMRC has insisted that because Flybe is a UK company, with employees spending some of their time working on the mainland, a third of their wages should be subject to UK PAYE. The ruling also applies to staff in Jersey and the Isle of Man. But the airline said that it was addressing the situation as a ‘matter of priority’ and was fully committed to ‘supporting its staff in their desire to pay tax where they live’.
Well I am a single 20 year old who has no property in the UK (just yet!) and I only have a few debit/ credit cards that I use when I am in the UK. Apart from that I just come home to visit friends and get away from the heat, so I doubt the UK is centre of my interests and life.
Moved out of the UK in 1970 and have lived in the Netherlands since 1972, married to a Dutch wife and we have children, all living in NL. BUT we have a flat in the UK which we visit, but less than 90 days a year, we also have a bank account and building society account in the UK. I am tax liable internally to my employer but have to fill tax forms in for the Dutch tax system- zero income (EU system). When on pension I will be liable for Dutch tax (who have a 'no double taxation' agreement with the UK). I thought I was safe but where does one go for financial help, not all accountants know about these things. This is all Broon's doing.
You can waste a lot of cash with financial 'experts' who will not (probably dare not) tell you anything you can't download from HMRC website. I found their offices very helpful once I got through the telephone queue (SkyPe a must). Believe it or not they do actually seem to want to help as long as you're honest with them. Do the Dutch tax pensions? If, like about 95% of countries, they don't then you will be able to get any UK pensions tax free (this unfortunately excludes goverment pensions (e.g. Police, NHS).
I'm sure you must be aware that if you spend more than 180 days living in almost any country, you are required to pay tax there on ALL your GLOBAL income and savings. You can, of couse, lie about it and risk being homeless, stateless and going to jail with no money to come out to if they find out, and most countries are getting better at that. You can, of course live in Monte Carlo or similar tax haven but it would probably be very much cheaper to pay the taxes and live somewhere much less crass.
rod... thanks very much for your reply. Dutch pensions are taxed hence my reference to the double taxation rule. I have no UK pension rights. I agree with you on the advice and accuracy problem, hence my question to anyone who has better knowledge on this website. It seems to be a maze and every man for himself and 'over the top' vis-a-vis HMRC. ie. a Broon trick. You must be in a similar situation and there must/should be a website where 'we' can talk about this... anyone? Maybe I will take a couple of days and try and contact HMRC!!!