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Old 22nd Jul 2013, 20:25
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Ex Pat stuff

Folks.

I know the rules have changed, and I've read some of the HMRC stuff, but it is SO boring- and frankly HARD to understand.

If I, a married guy, with kids and a house in the UK , stay out of the UK for 90 days or less, can I still be UK tax exempt?

I realise it's a bit of a cheek asking this on pprune.

Plan to work in India-, if that's any help, and will be paid about $14000 US, leaving about $10000 US Nett.

Sick of UK tax!
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Old 22nd Jul 2013, 20:43
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Short answer - no.

Pretty much everything about you has to leave. Wife, kids, house, schools etc.

Long answer much more involved and you will have to read the HMRC bumf.

regards
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Old 22nd Jul 2013, 21:05
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Thanks for your short answer.

I'd heard it had changed.

Next question:

How best to avoid UK tax?
My idea is to open an Indian bank a/c, and paythe loot in there as a first step.

Second step might be pay all bills from there.

Third step....? not so sure.

Pushing my luck here, I know....
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Old 22nd Jul 2013, 21:29
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Best way to avoid UK tax, dont reside in UK.

Anything else, suggest speaking to an accountant first, might be able to do some bits off island, but being honest if your caught doing something deemed to be illegal to avoid tax then you might find you get some free accommodation and food courtesy of the UK Govt
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Old 22nd Jul 2013, 22:44
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Crashlanding: Wouldn't be the first time...., jail-wise, although in the Army, it was easy to be a short-term criminal....

Cards on table: Just sick of UK PAYE. I'd prefer to be a bit more like my self employed (not-a-pilot) mate.

I'm 'sick' of getting by HMG and if I go overseas, there's NO way that those HMG parasites are going to get a drink out of me.
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Old 22nd Jul 2013, 23:18
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You've gotta move abroad mate, a mate if mine lives in Belgium and commutes. His overall tax rate is comical, something like 0.2%. He can claim all sorts against his Belgium tax including commuting expenses and his mortgage interest.

Anyway, that's an aside, then other guys are right, gotta move abroad to live tax free... and rightly so IMO
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Old 23rd Jul 2013, 00:09
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Dooble.

Sure!

I AM going abroad.

Just the wife, kids, and debt staying in the UK!

Gawdelpus.....
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Old 23rd Jul 2013, 02:31
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The tax you pay in India together with the Form 16 from you're employer should mean no further liability to HMRC.
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Old 23rd Jul 2013, 09:21
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If you still have property in the UK for your use, you will find this a very difficult trick to work. Suggest a good adviser. Many of my colleagues (and I in the past) use David Sawyer. www.aircrewtaxreturn.co.uk Hope the mods let this through as advice rather than advertising!!
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Old 23rd Jul 2013, 09:58
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I recommend seeing a tax advisor to determine your status.
However, broadly speaking, there are two levels of "connection" to the UK which determine the number of days you may spend in the country. A day equates to a midnight spent on UK soil. So if you arrive at 1400 one day and leave at 1400 the next day, that is 2 days.
If you are found to still be connected to the UK and if you have a house, wife and kids in school, and I would GUESS that you would be, then you are allowed 45 days.
If you had a house that is not rented out and you just go back there occasionally, then you could spend 90 days in the UK.
The test is to determine how much of the public services you are using and therefore whether you should be paying tax or not.
This is a difficult area as none of the new rules (to to my knowledge) have been tested legally. Naturally they make it difficult for the little people who can't afford elaborate tax avoidance scams - the lives of the Russian oligarchs will remain unchanged.
See an advisor.

Last edited by Al Murdoch; 23rd Jul 2013 at 09:59.
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Old 23rd Jul 2013, 11:22
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You and your family need to go abroad to avoid UK taxes.
It helps to have let your house out, and have the foreign based employer tell HMRC that you are now employed abroad.
HMRC have seen all the lesser variations, and are clamping down if they think that you and yours are still, really here.

You might need to get a divorce if your family stay here, but I'm not sure that even that will work.....
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Old 23rd Jul 2013, 11:35
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Thanks Al.

Surely 1400 to 1400 is only one midnight?

Yes, I shall have to seek expert advice on this one.

I was (and still am!) hoping to hear from some 'real life' ex pats with real time, experience-today-based first hand reality sharing information!

Might be useful for folk other than me also.

Ancient
My family are staying home, my house will not be rented out. These are not negotiable in my case.
Two kids, age 19 & 17.5
Apparently these ages are relevant.

Last edited by AtomKraft; 23rd Jul 2013 at 11:38.
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Old 23rd Jul 2013, 14:28
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With all due respect, if your wife and kids are living in the UK and they are using the health care system etc. , then why would you not expect to pay tax in the UK?

Good luck all the same, cos we all hate the tax man!
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Old 23rd Jul 2013, 18:44
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With all due respect, if your wife and kids are living in the UK and they are using the health care system etc. , then why would you not expect to pay tax in the UK?

Good luck all the same, cos we all hate the tax man!
Yeah ..think Amazon, Apple, Starbucks....what was it Leona Helmsley said about taxes and little people ....
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Old 23rd Jul 2013, 19:51
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737

Because I will be paying tax in India!

I know some ex-pats are operating completely tax free, but in my case I'm only seeking to avoid HMG adding their cut to that which the Indians have already extracted.

India tax is about 28%

UK tax is what, 50%? So HMRC might ask for another 22%.

Dem's not getting it!
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Old 23rd Jul 2013, 20:13
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Dual Tax Agreement. There will be one with India - details on the HMRC website.
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Old 23rd Jul 2013, 20:24
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Dual tax (or Double taxation) agreement.

Oh yes.

So if you were due to pay 50% tax in the UK, but you only paid say, 30% abroad- UK HMRC helps itself to another 20%.

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Old 23rd Jul 2013, 20:39
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http://www.hmrc.gov.uk/taxtreaties/i.../india-dtc.pdf

Scroll down to section 8 and click on the link to it and it'll take you there.

Section 8 of the India - Uk tax agreement:

Profits derived from the operation of aircraft in international traffic by an enterprise of one of the Contracting States shall not be taxed in the other Contracting State.

There's this updated amendment to the treaty but it is not in force and doesn't affect air transport workers.

http://www.hmrc.gov.uk/taxtreaties/s...-india-dta.pdf

Enjoy India.

Last edited by WhyByFlier; 23rd Jul 2013 at 20:42.
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Old 23rd Jul 2013, 20:42
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Not at all Ak, you have to read the DTA. Sometimes it is a tax credit and some times an exemption. The one with India states that the Indians may tax you, so you should be safe, but, by all means, do consult a professional.

Why by, you have to look at the section 16 about income derived from employment aboard an aicraft, you are looking at where airlines have to pay their taks.

Last edited by sarah737; 23rd Jul 2013 at 20:49.
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Old 23rd Jul 2013, 20:57
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You've gotta move abroad mate, a mate if mine lives in Belgium and commutes. His overall tax rate is comical, something like 0.2%. He can claim all sorts against his Belgium tax including commuting expenses and his mortgage interest.
In fact Belgium has one of the highest tax rates in the world (50%) Even after all possible deductions. Your friend benefits from a favorable double tax treaty, which doesn't allow Belgium to tax him altough he lives there. The Belgian-UK treaty has recently been changed because the old one lead to double non-taxation for pilots living in Belgium (UK) and working for a UK (Belgian) company.
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