Cathay freighter tax options
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Joined: Jul 1998
Posts: 136
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From: Between a rock
Cathay freighter tax options
Hi guys
Any euro-trash freighter guys let me in on what the options living wise are to aviod the tax man?
i am aware that there are non resident options for the UK, what about the other bases?
thanks
Any euro-trash freighter guys let me in on what the options living wise are to aviod the tax man?
i am aware that there are non resident options for the UK, what about the other bases?
thanks
Joined: Dec 2003
Posts: 18
Likes: 0
From: in a box
Notwithstanding the rhetoric from those whose tax affairs may be less white than daz white, in answer to your question there is only one legal way to beat the tax man and that is to be non resident - assuming from your location being London that you are a UK tax payer.
You are correct in your assumption that moving out of the UK will exempt you from UK tax. If you own a house overseas and spend less than 90 days (not including the part days when you arrive and depart) in the UK, you are not liable.
However, the status of non resident is a grey area. Say for instance that you own a properety in Spain and claim that it is your residence and you do actually spend less than the 90 days in the UK, but your wife spends more than the 90 and your kids go to a UK school, expect to pay up if found out, as the Inland Revenue can change your staus as they see fit.
Also be aware of the tax agreements other countries have with the UK and Hong Kong. For example, the UK and France agreed on a tax treaty earlier this year which basicly means if you live in either, you are liable - except that France has a 180 day residency rule. Also take into account that as the EU developes the tax rules will gradually harmonise (almost certainly not in your favour!) so keep abreast of future plans. This may have a bearing on where you decide to live. Also, rumours abound that the UK residency rule could drop to 30 days if Labour get re-elected.
Also remember that you have to pay Hong Kong tax (16% after allowances) but any you pay to HK is deducted from what you pay to Gordon Brown.
As mentioned, the best way to deal with his is through an accountant. PM me and I will give you my accountant's details. He is pretty clued up on HK tax matters - quite a number in the company use him.
You are correct in your assumption that moving out of the UK will exempt you from UK tax. If you own a house overseas and spend less than 90 days (not including the part days when you arrive and depart) in the UK, you are not liable.
However, the status of non resident is a grey area. Say for instance that you own a properety in Spain and claim that it is your residence and you do actually spend less than the 90 days in the UK, but your wife spends more than the 90 and your kids go to a UK school, expect to pay up if found out, as the Inland Revenue can change your staus as they see fit.
Also be aware of the tax agreements other countries have with the UK and Hong Kong. For example, the UK and France agreed on a tax treaty earlier this year which basicly means if you live in either, you are liable - except that France has a 180 day residency rule. Also take into account that as the EU developes the tax rules will gradually harmonise (almost certainly not in your favour!) so keep abreast of future plans. This may have a bearing on where you decide to live. Also, rumours abound that the UK residency rule could drop to 30 days if Labour get re-elected.
Also remember that you have to pay Hong Kong tax (16% after allowances) but any you pay to HK is deducted from what you pay to Gordon Brown.
As mentioned, the best way to deal with his is through an accountant. PM me and I will give you my accountant's details. He is pretty clued up on HK tax matters - quite a number in the company use him.
