Korean Air CCL contract and UK Tax

[Fat Dog]

Hi All

I'm struggling to find a definitive answer to this and the answer will determine whether I would consider a contract with the above. I would really appreciate some advice from someone familiar with UK DTA agreements. For clarity, the Korean CCL contract will result in spending more than 90 days on average in the UK per year, but always less than 182. The contract is likely to last at least 2 years, and is Korean TAX PAID.

So, in a nutshell, will I be liable for UK tax?

Alternatively, if anyone is willing to recommend a tax specialist in or around London that would be equally useful.

Thanks

[Sygyzy]

In a nutshell-more than 90 days in the UK and you'll pay UK tax.

In practice if you spend more than about 60 days (midnights in fact) in the UK then HMRC will say (and your accountant will do a tapdance) that your centre of interest is the UK and...see above. Do you have a house in the UK, a car a family, club membership etc.

A well renowned tax adviser advises that if you have a wardrobe of clothes in the UK then HMRC will deem you resident and you'll pay tax.

I'm no expert, but was once audited by HMRC to prove that I didn't live in UK/my centre of interest wasn't in the UK. It ain't pleasant let me assure you. There's no formal set of words/questions to prove this. 'Winging it' is near impossible as HMRC have the bat and the ball.

Some nice people on the South coast of the UK would advise you well.

S:ok:

[Fat Dog]

Thanks for the info.

So do you know if my uk tax liability would be reduced by way of the DTA the uk have with Korea given the money is Korean tax paid?

[Sygyzy]

The 90 days becomes 60 when the Revenue are breathing down your neck and your accountant is uneasy cos you're getting close to 90 in a country that isn't your centre of interest!

I was simply trying to give a flavour of the way HMRC works. If you manage exactly 90 days (or 183 midnights or whatever the law states) for a couple of years, or even average less than 90 over a longer period, and then fall foul of a criteria that HMRC have dreamed up yesterday-IMHO you're toast, as Timetraveller has pointed out. Kids in a UK boarding school, a collection of marbles at your Mum's house....If you go down the expat road just make sure you get some good experienced advice and then do it correctly or the stress will far outweigh the benefits.

S:=

[Fat Dog]

Anyone know how the DTA tax credit may work? So for example if HMRC decide you are liable for income tax in the amount of £x because you spend more than 90 days/year on average in the UK, but your employer has paid the equivalent of £x/2 on your behalf in Korean tax, do you then have to pay the difference in UK tax? Or am I being too simplistic?