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Old 1st Jul 2010, 19:26
  #313 (permalink)  
harrypic
 
Join Date: Apr 2010
Location: Dubai
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Non Doms

There's been alot of talk about commuters and non doms, so I thought I'd clarify the tax position of commuters.

Your domilicility is not determined by where you live - it's alot more complex than that. Generally you are domiciled where your father is born and this is incredibly difficult to change. Just because you move abroad doesn't change your domicility, just your residency status.

If you are domiciled in the UK you cannot avoid paying tax on ANY UK earnings, irrespective of where you live. Now, I would imagine, as working for BA would mean your place of work is the UK, that, unless father born outside UK so therefore classed as non dom, the commuters have to pay UK income tax.

The only way around this, if you are UK domiciled, is if your place of work, hence your earnings, are outside the UK and you spend less than 90 days in UK in a tax year. Then you are "normally" not liable for UK income tax on such earnings ("normally" means you have to have a formal contract showing your place of work is outside UK and you have filed a P85 with HMRC and they have accepted your non resident status)

Therefore, I would summize the majority of commuters do not enjoy tax free salaries and will be hit hard by the removal of ST and having to buy their own full price tickets.
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