Originally Posted by
GA F15
Commuting to/from the UK doesn't necessarily mean you will pay U.K. Tax.
As far as I understand it you can spend up to 90 days (or 120 days if you've not been UK resident for last 3yrs) if you have 2 ties (e.g. Family in UK and UK home). So 'IF' they were to offer a contract of 10 days off per month (for example), you won't obviously reach the 90 day limit until approx 9 months. After that I imagine holidays in somewhere other than the UK are a good idea!
I think you would also have to monitor your UK layover trips as there is a tie associated with that also.
Ah, no, that's not really the full story of how it works at BA - I'm really sorry to deviate the thread again folks but at the risk of boredom we need to kill this persistent "no tax in the U.K." story and similar rumours, the underpinning legislation for most of this is ITEPA 2003 section 690, but I'll try a quick explanation.
As a starter I've been "commuting" from the mainland EU for over 15 years and am on the "radar" at both ends (i.e. two tax returns a year) ....so what follows isn't a half heard rumour, bar room/ jumpseat BS or friend of a friend rumour stuff, this is pretty much how it works, at least for the Brits working at BA, operating out of LHR or LGW but living elsewhere in the EU.
The " 90/120 days " rule and other ties referred to are used determine if you are resident in the U.K. for tax purposes..if you are deemed resident you are assessed for income tax etc on
all your salary at BA....period.
OTOH if you duck under the 90/120 days criteria and avoid other ties with the UK you can be deemed "non resident for tax purposes." ...
but that is not a tax free status, certainly the Brits "commuting" are still liable for full, 100%, Employees UK National Insurance (NI, the social charge on wages) and they also pay income tax on that proportion of salary deemed to have been earnt in the U.K. and UK airspace,. FWIW I spend maybe 20 - 30 full days in the UK per annum at most, have absolutely no other U.K. ties but still pay full NI and some UK income tax.
So in conclusion and to emphasise the non-resident Brits at BA I know of pay full NI and also pay U.K. Income tax on a percentage of their salary.....it is a favourable regime but it is definitely not the "no tax, no Social Charge deductions" regime some seem to think.
Now if one wants to argue about taxation at "the other end", i.e. in the country of residence that is down to local rules, the bi-lateral agreements and is a fast changing game at the moment. If you end up in one of the many countries in Europe where you pay local social charges and are assessed for "local" income tax ( which ultimately is usually reduced under the bi- lateral agreement by the amount already paid to the U.K HMRC) it can be a close call as to whether you are better off being non resident or not, so you need to do your homework and take professional advice.
Sorry to deviate the thread again with a long post but I hope that helps and hopefully we can put the tax issue at the UK end "to bed".