Best advice -straight bat down the line....
Interesting posts reminds me how topical an earlier posting of mine remains.
Hope that it will help a few of you and for clarity....
Approach of UK Taxman –Resident or Not?
Clearly it is becoming more evident within the wider community that the UK Revenue (HMRC) are actively seeking to tighten their approach and grip extending taxing arms as far as possible in many respects but also in relation to aircrew.
The whole matter has been rumbling on for a long time but looks as though it may now overflow and probably result in further shake ups.
Some may encounter problems which could include greater risk of a retrospective challenge regarding any claimed Non Residence status and UK tax position, particularly in respect of any periods during which a UK basing has been or will be held. Subject of course to overall individual facts of each case.
HMRC guidance within IR20 is long over due a complete re write and simply cannot be relied upon.
UK Tax Residence status is covered by very little UK legislation with additional guidance, practice, and concessions being drawn from case law.
Tax cases of Robson v Dixon 1972, Shepherd 2005 and more recently Gaines-Cooper 2006 refer.
When trying to stay a step ahead, various considerations (list below not exhaustive or necessarily in any particular order of importance) will impact upon the outcome and they include:-
1) your physical presence (i.e. visits to UK)
2) performance of UK substantial duties ( i.e. working flights) or not
3) UK accommodation maintained available for use or not
4) Basing UK or overseas throughout relevant period
5) Location of home and family
6) Host country tax position (returns filed/tax resident/tax paid)
7) Application of relevant Double Taxation Agreement (Tax credit/exemption)
8) Standing and use of overseas property (family home / holiday home) etc.
Some have already encountered individual enquiries from the UK taxman into self assessment tax returns previously submitted and this trend is only likely to escalate.
Of course this can prove to be both time consuming and costly to both sides.
Conflict of International law regarding taxing rights can be a complex subject.
Will you still be able to continue to live abroad effectively within your chosen host country and have this upheld by the UK tax authorities when on a UK basing?
Probably yes, providing that all other relevant criteria are adhered to and indeed upheld, then it should still be possible to take a view that a UK Non Residence status could continue for some with restricted UK liability arising to the extent of remuneration attaching to UK duties performed and other UK arising income.
The more important questions may be where do you want to live and if this is abroad will any combined foreign taxation turn out to be more onerous than any UK liability?
UK tax authorities will continue to have regard to your individual circumstances and lifestyle choice but you may find yourself, as others have indicated, filing tax returns to three or more jurisdictions -with all of the attendant admin and fees.
So do seek further professional advice within each relevant jurisdiction, being that of your home country, basing and employer’s location.
Turbulence ahead possibly so, but hopefully with careful planning - not for everyone.
David