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Longhaul into UK, watch out, you could become Resident & liable for income tax!

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Longhaul into UK, watch out, you could become Resident & liable for income tax!

Old 21st Jan 2008, 13:25
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Longhaul into UK, watch out, you could become Resident & liable for income tax!

HM Government is looking at changing the residency rules and therefore your tax liabilities. If you fly longhaul, (or even visit Britain on business) days of arrival and days of departures are to count towards your 90 days per year. Take a look here:

http://www.hmrc.gov.uk/cnr/res-dom-tax-amends.htm

Guess that would encompass all trans-atlantic crews who fly in to the UK? How do you feel about paying a great lump of your cash to the UK governent?

There is an email address for you to voice your opinions as it is at the consultation stage at the moment, but you've not got long to post your comments. Take a look.
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Old 21st Jan 2008, 15:20
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Guess it could be made reciprocal.

Start taxing all Brit long haul crews, who fly to the USA, Australia, South America....
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Old 21st Jan 2008, 16:40
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Or just quashed?
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Old 21st Jan 2008, 17:21
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If you are neither resident nor domiciled in the UK it wouldn't apply.
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Old 21st Jan 2008, 22:07
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according to my accountant (one of the largest) it will affect someone who is not resident or domicile. just need to arrive or depart or stay and days will count to the 90. still awaiting to see how the tax authority where I am residient and domicile is going to count the days I depart or arrive or stay ?
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Old 22nd Jan 2008, 05:19
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you need to earn yr money in the UK for it to be taxed there!
So only crews working on a UK contract and living abroad could be effected by this.

Neil
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Old 22nd Jan 2008, 07:06
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Neil

Not strictly true. If you have any assets, such as shares or property in the UK on which you earn income, then your salary is liable for UK tax. Resident or not and regardless of 'where' you earned it. A formula is used to calculate the proportion of salary to be taxed and this is based on the amount of time in the UK, both through work related duty and leisure.

The good news is that you're entitled to the initial tax free allowance and as such, should never end up paying any tax on the income.

BYMONEK
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Old 22nd Jan 2008, 07:17
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Neil,
If you operate into the UK, you have earned a portion of your salary in the UK because you have flown in uk airspace and landed at a UK airfield. They will also include your de-brief time (usually 30 mins) to your UK working. At present, they add this up, compare it with the hours you do outside of the UK and come up with a percentage of your income that is UK earned. The problem lies in the new rules that may come in, i.e. you spend more than 90 nights, you BECOME resident, you then pay FULL tax!!!! Read the proposals and email your objection. They are not about being fair. Gordon Brown wants cash. End of story.
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Old 22nd Jan 2008, 09:43
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Interesting to see how many of those BA pilots who decided to live in France for 'lifestyle' reasons will stay over that side of the channel.
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Old 22nd Jan 2008, 10:45
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I'd been hoping that days where you arrived AND departed on the same day would not be counted, giving a much better chance of staying within the 90 day rule. Admittedly coming over to the UK the night before an early duty would be a difficulty but hopefully you could balance those with enough days where you could arrive and depart on the same day. Now that these days are also to be counted, anyone living abroad could be deemed resident simply by spending a few hours per week in an airport. Staying airside isn't an option since airline offices which one would need to visit are on the 'public side'.

This is not in the spirit of paying a 'fairer share' and I've sent off an email pointing out why this draft legislation is most unfair to pilots. I'd urge others to do the same.

This is money grabbing in true Gordon Brown red labour fashion. Taxing people who receive none of the benfefits that this taxation provides. No schooling, no NHS, no local and national services etc etc. How than this possibly be construed as fair???
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Old 22nd Jan 2008, 10:52
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As the proposals are currently at draft legislation stage it is important that anyone affected by the changes sends their concerns to the following. It may be worth pointing out the flight safety issues the proposals will create.

[email protected]

[email protected]
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Old 22nd Jan 2008, 11:42
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Another prong to the BA Openskies debate - certainly mainline staffing of the venture would be in greater demand as a result!
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Old 1st Apr 2009, 22:33
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Income tax for pilots

I would like to establish contact with a respected (UK) tax advisor on the subject of airline pilot income tax. Please PM if you can recommend someone. Many thanks.
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Old 2nd Apr 2009, 07:22
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Is NOT, I repeat NOT the day of arrival and departure that counts - I dunno where that idea came from - It is the number of midnights spent in the UK. Read the summary of changes;

under the 183-day rule to count as a day any day upon which an individual is in the UK at the end of that day (i.e. at midnight)
So an overnight trip to the UK counts as one, a day trip counts as zero. Under the fallacy above, an overnight trip could have been 2, so it could have been worse.

I take issue with the UK's max 91 days average over 4 years rule - it is out of step with Europe, and half their maximum.
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Old 2nd Apr 2009, 07:51
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Could it be, possibly, that Gordo Robber Brown and his black eyebrowed side kick realise, finally, that the UK is flat broke and looking at a future of sitting by the European main line economic station drinking meths from a brown paper bag?

Hence the only ones left to tax and able to be taxed (MP's and MEP's allowances exempt of course) are to be squeezed between the proverbial rock and a hard place.

Even trying to leave this sinking ship costs far more in taxes than just about any other country on the globe due to the so called 'green tax' that just plugs up the Governments blunder holes in the economy.

Now we get to fund the 'quango' public sector pay and the MP's 'allowances' from the comfort of another country.

Blinding.

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Old 2nd Apr 2009, 09:13
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Time Traveller
The days not counting used to be the case. It changed last year due to a high court ruling. Days travelling to the UK now count in full. So if you travel to the UK friday night and leave monday morning that was 2 days, now 4!
Completely out of step with the rest of the world. But the rest of the world doesn't have such deplorable government!
The domicile/residence rules have also changed in their favour to such an extent that any property, family at school, business etc. in the UK could be contrued as your centre of existance. Full tax again!
The only way in my opinion is to get off the ship altogether and live in a fair country. Something the UK under GB most certainly is not!
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Old 2nd Apr 2009, 09:27
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This quote

under the 183-day rule to count as a day any day upon which an individual is in the UK at the end of that day (i.e. at midnight)
comes directly from the HMRC's own guidance -

To me that is pretty clear that your example would equal three days (ie midnights) in the UK
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Old 2nd Apr 2009, 09:38
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Yes. But that is old rules! It has changed. Speak to your accountant!
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Old 2nd Apr 2009, 09:56
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Kelly, please read the document and its links at the head of this thread - It (and the quote I pasted) is dated 25th March 2009. Your accountant is out of date/misinformed - HMRC website is quite clear.

The old rule was, as you said, neither the day of arrival nor the day of departure counted - This in effect changed to only the day of arrival counting, (though there were fears it would be both following that high court ruling).
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Old 2nd Apr 2009, 10:12
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you spend more than 90 nights, you BECOME resident
I wish UKBA thought this - would save the 1000's I am spending on visa fees for my Balinese wife to become resident - this takes minimum 2 years . . .
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