Tax question
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Tax question
I know that this subject has been discussed before but i am not able to find it again maybe somebody can help me out.
When you work and pay taxes in the UK but you are more than a certain period a year abroad you are able to pay a lower tax percentage. Or this is as far as i can remember.
Can somebody please tell me where i am able to find more about this?
Thank you all in advance.
FT
When you work and pay taxes in the UK but you are more than a certain period a year abroad you are able to pay a lower tax percentage. Or this is as far as i can remember.
Can somebody please tell me where i am able to find more about this?
Thank you all in advance.
FT
Está servira para distraerle.
It seems to me that you need some professional advice on domicile, residence and place of earnings' generation.
I would suggest that you get hold of a copy of BALPA's magazine, 'The Log'. There are usually some aviation experienced accountants advertising within those pages.
Alternatively you could access The Telegraph newspaper on the net. They have quite a reasonable section for expatriates under the money/tax section; although it does not appear that you fall into that category.
What I would not do, under any circumstances, is to ring the Inland Revenue with your queries. They are usually so terribly helpful as they nail you to the cross.
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Thanx very much for your advice.
Never thought about Balpa!! I will go through my copy of The Log and see what i can find.
Already have a good company for expats (because i am one) but i mean to remember that there was a time ago a similar thread. A believe a longhaul pilot was looking for a tax reduction because he was more than 180 days a year out of the country.
But i will look in to an account.
Cheers, FT
Never thought about Balpa!! I will go through my copy of The Log and see what i can find.
Already have a good company for expats (because i am one) but i mean to remember that there was a time ago a similar thread. A believe a longhaul pilot was looking for a tax reduction because he was more than 180 days a year out of the country.
But i will look in to an account.
Cheers, FT
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I know that seafarers spending more than 183 days out of the country each year are allowed to claim a 100% income tax rebate - as I do each year.
However, this only applies to seafarers and not other jobs where you spend time out of the country!!
However, this only applies to seafarers and not other jobs where you spend time out of the country!!
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Hi all,
Sorry for logging into this forum. I normally log into the wannabe section.
Sighted the tax discussion and thought i would investigate.
I am professional seafarer, currently hour building and thought, you would like an insight into the tax incentive given to seafarers.
The 183 day ruling was brought in as an incentive to keep a British fleet and workforce at sea. Just incase of any future conflicts i.e. similar to the Falklands War. In order to take and man Merchant vessels .
However there's not much of a British seafaring workforce left and the situation is getting worse. So i wouldn't worry about it.
Best Regards
Mike G
Sorry for logging into this forum. I normally log into the wannabe section.
Sighted the tax discussion and thought i would investigate.
I am professional seafarer, currently hour building and thought, you would like an insight into the tax incentive given to seafarers.
The 183 day ruling was brought in as an incentive to keep a British fleet and workforce at sea. Just incase of any future conflicts i.e. similar to the Falklands War. In order to take and man Merchant vessels .
However there's not much of a British seafaring workforce left and the situation is getting worse. So i wouldn't worry about it.
Best Regards
Mike G
Flying Torquewrench
It depends.....simply spending lots of time outside the UK on trips/tours but having partner/dog/house/kids in UK will not reduce taxation, as a recent Court Case has shown.
If, however, you can show the IR that you spend less than 90 days per annum in the UK and that your "centre of interest" is outside the UK then you may be able to pay reduced taxation in the UK............you may well however be clobbered by the tax authorities in the country of your residence.
If done properly it's all above board and legit, The regulations are all available from the Inland Revenue's website, or ring them up - despite what others have said I've always found them OK and they will even send you nice booklets explaining the whole process.
Finally I would if you go via BALPA and their preferred accountants be warned - if you decide to engage them you will find them very expensive
It depends.....simply spending lots of time outside the UK on trips/tours but having partner/dog/house/kids in UK will not reduce taxation, as a recent Court Case has shown.
If, however, you can show the IR that you spend less than 90 days per annum in the UK and that your "centre of interest" is outside the UK then you may be able to pay reduced taxation in the UK............you may well however be clobbered by the tax authorities in the country of your residence.
If done properly it's all above board and legit, The regulations are all available from the Inland Revenue's website, or ring them up - despite what others have said I've always found them OK and they will even send you nice booklets explaining the whole process.
Finally I would if you go via BALPA and their preferred accountants be warned - if you decide to engage them you will find them very expensive
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Wiggy,
Very interesting reply. I will explain my situation a little bit more.
Living in the UK and flying shorthaul at the moment so that is the main reason for living in the UK. Girlfriend is living in holland. However from next month on going to fly longhaul for a charter airline so quite a lot of trips that will last a week. My plan is to live in holland an commute. Staying over at a friends house for the occasonal standby duty.
I have checked the IR website and found that if you are less than 180 days in the UK you don't have to pay any tax. Depended of my roster i will be out of the UK for two weeks a month minimum. This together with a few trips home will reduce my time in the UK to below 180 days in the UK.
Because of the loan i have for my flight training i won't be paying any tax in holland. So it would be welcome if i can go on to the dutch tax system for a few years till the loan is paid of.
I am in contact with a company which deals with expats maybe they can help me any further.
i will let you know.
Thanx for your time.
FT.
Very interesting reply. I will explain my situation a little bit more.
Living in the UK and flying shorthaul at the moment so that is the main reason for living in the UK. Girlfriend is living in holland. However from next month on going to fly longhaul for a charter airline so quite a lot of trips that will last a week. My plan is to live in holland an commute. Staying over at a friends house for the occasonal standby duty.
I have checked the IR website and found that if you are less than 180 days in the UK you don't have to pay any tax. Depended of my roster i will be out of the UK for two weeks a month minimum. This together with a few trips home will reduce my time in the UK to below 180 days in the UK.
Because of the loan i have for my flight training i won't be paying any tax in holland. So it would be welcome if i can go on to the dutch tax system for a few years till the loan is paid of.
I am in contact with a company which deals with expats maybe they can help me any further.
i will let you know.
Thanx for your time.
FT.
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I believe it is 180 days in a year (but an avarage of 90 days per year over the years)
I might be wrong ,better to call an expert on this!
I use Fry ,they are good and expensive (but i save a lot of money with them)
Neil
I might be wrong ,better to call an expert on this!
I use Fry ,they are good and expensive (but i save a lot of money with them)
Neil
Certainly for most UK nationals working for UK based airlines but Non-resident in the UK it's 90 days, any more time than that in the UK and you are fully liable for tax in the UK.
I used Fry's initially but IMHO and that of others they are getting very expensive.
Whatever, good luck with your plans
I used Fry's initially but IMHO and that of others they are getting very expensive.
Whatever, good luck with your plans
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I am also considering filing for non-residency, but wonder how to avoid tax in the country within which you transfer residency.
Surly the Spanish, French, Portugeese etc authorities will clobber you! Anyone with any know how?
Surly the Spanish, French, Portugeese etc authorities will clobber you! Anyone with any know how?
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Thanx everybody.
Got an accountant trying to work it out. Read on the inland revenue website that travelling days ar not included in the 91 day period so it should not be a problem for me to be in the UK for less than 91 days.
Malibu77,
You are quite righ. But because i have got a loan for my flight training i will get a tax deduction in my home country. I will end up with paying less than 5% tax. Otherwise there is no point in becoming a non resident in the uk because we pay eve more tax. But as long as i have got the advantage of my loan i would like to use it.
FT.
When the accountant has worked out his stuff i will posted it on pprune for your information.
Got an accountant trying to work it out. Read on the inland revenue website that travelling days ar not included in the 91 day period so it should not be a problem for me to be in the UK for less than 91 days.
Malibu77,
You are quite righ. But because i have got a loan for my flight training i will get a tax deduction in my home country. I will end up with paying less than 5% tax. Otherwise there is no point in becoming a non resident in the uk because we pay eve more tax. But as long as i have got the advantage of my loan i would like to use it.
FT.
When the accountant has worked out his stuff i will posted it on pprune for your information.
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The IR are wise to all the scams and tricks that people try to pull with non residency. Why take the risk of imprisonment and try and cheat the system? One would be better just going and living abroad. When you're in the other countries' tax system, then you can look at various ways of minimising yr personal taxes there.
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Disclaimer - I am a long term ex-UK expat, not a tax lawyer.
I have always found the IR to be reasonable and helpeful. Personal experiences do vary. Maybe it's cause I earn so little they don't feel the need to grab at it too hard?
Just because you are resident in another country does not mean you will be able to be non-resident in UK. You can be resident for tax purposes in more than one country. So the main thrust will need to be to become non-resident for tax purposes. Even that might not help you though.
What being non-resident for tax purposes will exempt you from is UK tax on non-UK earnings. It will not exempt you from UK tax on earnings 'arising in the UK'. Your only source of relief beyond normal threshold stuff is double taxation treaties.
See this page, questions 3 and 6:
http://www.hmrc.gov.uk/cnr/faqs_general.htm
If / when you establish non-resident status for tax purposes, the key issue is if your earnings are considered to arise in the UK. I would think if your company has its headquarters in UK, flies mainly from UK, and you are paid in UK, then the IR (or HMRC as they are now known) will consider your earnings as arising in UK and tax them as such regardless of residence. I think this has arisen before, and been dealt with in the courts.
Any chance your company has a base outside UK at which you can belong?
I'd be interested to know if anything your accountant says differs from what I have written - these things do change and I might be mistaken or have missunderstood the rules.
Best of Luck!
I have always found the IR to be reasonable and helpeful. Personal experiences do vary. Maybe it's cause I earn so little they don't feel the need to grab at it too hard?
Just because you are resident in another country does not mean you will be able to be non-resident in UK. You can be resident for tax purposes in more than one country. So the main thrust will need to be to become non-resident for tax purposes. Even that might not help you though.
What being non-resident for tax purposes will exempt you from is UK tax on non-UK earnings. It will not exempt you from UK tax on earnings 'arising in the UK'. Your only source of relief beyond normal threshold stuff is double taxation treaties.
See this page, questions 3 and 6:
http://www.hmrc.gov.uk/cnr/faqs_general.htm
If / when you establish non-resident status for tax purposes, the key issue is if your earnings are considered to arise in the UK. I would think if your company has its headquarters in UK, flies mainly from UK, and you are paid in UK, then the IR (or HMRC as they are now known) will consider your earnings as arising in UK and tax them as such regardless of residence. I think this has arisen before, and been dealt with in the courts.
Any chance your company has a base outside UK at which you can belong?
I'd be interested to know if anything your accountant says differs from what I have written - these things do change and I might be mistaken or have missunderstood the rules.
Best of Luck!
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Only some do it it legally maxy101 and there are those that don't! multiple identities, bank accounts lives all over the place, shocking the lengths people will go to avoid tax.....
Last edited by Helli-Gurl; 23rd Aug 2005 at 17:26.
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Taken from the Guardian, an actual letter sent by the Inland Revenue:
Dear Mr Addison,
I am writing to you to express our thanks for your more than prompt reply to our latest communication, and also to answer some of the points you raise. I will address them, as ever, in order. Firstly, I must take issue with your description of our last as a "begging letter". It might perhaps more properly be referred to as a "tax demand". This is how we, at the Inland Revenue have always, for reasons of accuracy; traditionally referred to such documents.
Secondly, your frustration at our adding to the "endless stream of crapulent whining and panhandling vomited daily through the letterbox on to the doormat" has been noted. However, whilst I have naturally not seen the other letters to which you refer I would cautiously suggest that their being from "pauper councils, Lombardy pirate banking houses and pissant gas-mongerers" might indicate that your decision to "file them next to the toilet in case of emergencies" is at best a little ill-advised. In common with my own organisation, it is unlikely that the senders of these letters do see you as a "lackwit bumpkin" or, come to that, a "sodding charity". More likely they see you as a citizen of Great Britain, with a responsibility to contribute to the upkeep of the nation as a whole.
Which brings me to my next point. Whilst there may be some spirit of truth in your assertion that the taxes you pay "go to shore up the canker-blighted, toppling folly that is the Public Services", a moment's rudimentary calculation ought to disabuse you of the notion that the government in any way expects you to "stump up for the whole damned party" yourself. The estimates you provide for the Chancellor's disbursement of the funds levied by taxation, whilst colourful, are, in fairness, a little off the mark. Less than you seem to imagine is spent on "junkets for Bunterish lickspittles" and "dancing whores" whilst far more than you have accounted for is allocated to, for example, "that box-ticking façade of a university system."
A couple of technical points arising from direct queries:
1. The reason we don't simply write "Muggins" on the envelope has to do with the vagaries of the postal system;
2. You can rest assured that "sucking the very marrows of those with nothing else to give" has never been considered as a practice because even if the Personal Allowance didn't render it irrelevant, the sheer medicallogistics involved would make it financially unviable.
I trust this has helped. In the meantime, whilst I would not in any way wish to influence your decision one way or the other, I ought to point out that even if you did choose to "give the whole foul jamboree up and go and live in India" you would still owe us the money.
Please forward it by Friday.
Yours Sincerely,
H J Lee
Customer Relations
Dear Mr Addison,
I am writing to you to express our thanks for your more than prompt reply to our latest communication, and also to answer some of the points you raise. I will address them, as ever, in order. Firstly, I must take issue with your description of our last as a "begging letter". It might perhaps more properly be referred to as a "tax demand". This is how we, at the Inland Revenue have always, for reasons of accuracy; traditionally referred to such documents.
Secondly, your frustration at our adding to the "endless stream of crapulent whining and panhandling vomited daily through the letterbox on to the doormat" has been noted. However, whilst I have naturally not seen the other letters to which you refer I would cautiously suggest that their being from "pauper councils, Lombardy pirate banking houses and pissant gas-mongerers" might indicate that your decision to "file them next to the toilet in case of emergencies" is at best a little ill-advised. In common with my own organisation, it is unlikely that the senders of these letters do see you as a "lackwit bumpkin" or, come to that, a "sodding charity". More likely they see you as a citizen of Great Britain, with a responsibility to contribute to the upkeep of the nation as a whole.
Which brings me to my next point. Whilst there may be some spirit of truth in your assertion that the taxes you pay "go to shore up the canker-blighted, toppling folly that is the Public Services", a moment's rudimentary calculation ought to disabuse you of the notion that the government in any way expects you to "stump up for the whole damned party" yourself. The estimates you provide for the Chancellor's disbursement of the funds levied by taxation, whilst colourful, are, in fairness, a little off the mark. Less than you seem to imagine is spent on "junkets for Bunterish lickspittles" and "dancing whores" whilst far more than you have accounted for is allocated to, for example, "that box-ticking façade of a university system."
A couple of technical points arising from direct queries:
1. The reason we don't simply write "Muggins" on the envelope has to do with the vagaries of the postal system;
2. You can rest assured that "sucking the very marrows of those with nothing else to give" has never been considered as a practice because even if the Personal Allowance didn't render it irrelevant, the sheer medicallogistics involved would make it financially unviable.
I trust this has helped. In the meantime, whilst I would not in any way wish to influence your decision one way or the other, I ought to point out that even if you did choose to "give the whole foul jamboree up and go and live in India" you would still owe us the money.
Please forward it by Friday.
Yours Sincerely,
H J Lee
Customer Relations
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Could someone please help me with the following.
My position as of next year is that I will be flying for a charter company on shorthaul Med. flights. I will be in the UK from mid May to mid September.
I will of course have to be here for less than 90 days, on average, to maintain non-resident status. I aso know that the days of travel to and from the UK don't count. My real home will be about 16 flying hours away so I will only come and go home twice during this period.
Is it true that the days that I fly, say to Tenerife and back, are considered days of travel, and therefore not part of the 90 day maximum stay? And therefore although you spent the previous night and the following night (this is a rare DAY TFS '
) in the UK, it is still considered as not here for the 90 days?
I would appreciate any feedback.
Many thanks,
GMS
My position as of next year is that I will be flying for a charter company on shorthaul Med. flights. I will be in the UK from mid May to mid September.
I will of course have to be here for less than 90 days, on average, to maintain non-resident status. I aso know that the days of travel to and from the UK don't count. My real home will be about 16 flying hours away so I will only come and go home twice during this period.
Is it true that the days that I fly, say to Tenerife and back, are considered days of travel, and therefore not part of the 90 day maximum stay? And therefore although you spent the previous night and the following night (this is a rare DAY TFS '
) in the UK, it is still considered as not here for the 90 days?I would appreciate any feedback.
Many thanks,
GMS
