Ex pat tax
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Ex pat tax
It used to be, stay away for most of the year ( in the UK for 90 days or less) and avoid paying UK tax.
Then the rules changed, and it all got a bit complex.
Now, my chum tells me, if I work full time overseas (India in this case), make no visit to the UK greater than 31 days, and spend less than 91 days there in a year.....then I'm not liable for UK tax in any way. This as from 2013.
I don't have HMRCs stuff to hand, and if I did, I'd probably struggle to understand it- but is my chum broadly correct?
If so, it seems that all that 'sliding scale' stuff- ie whether or not u have a house, a wife, dependants and so on, has gone in the bin.
Then the rules changed, and it all got a bit complex.
Now, my chum tells me, if I work full time overseas (India in this case), make no visit to the UK greater than 31 days, and spend less than 91 days there in a year.....then I'm not liable for UK tax in any way. This as from 2013.
I don't have HMRCs stuff to hand, and if I did, I'd probably struggle to understand it- but is my chum broadly correct?
If so, it seems that all that 'sliding scale' stuff- ie whether or not u have a house, a wife, dependants and so on, has gone in the bin.
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My understanding is that the ties test still apply.
Therefore the more ties, eg wife, kids house you are able to stay in etc, then the more likely you are to be classed as being resident.
You would be well advised to contact a tax adviser to check on your own individual circumstances.
You will need to advice HMRC of your change of status., but the good news is they will take account of split years so you may get a rebate.
The HMRC have a help booklet which will guide you through the process. It comes a at the process from the point of you you wish to be resident!
Therefore the more ties, eg wife, kids house you are able to stay in etc, then the more likely you are to be classed as being resident.
You would be well advised to contact a tax adviser to check on your own individual circumstances.
You will need to advice HMRC of your change of status., but the good news is they will take account of split years so you may get a rebate.
The HMRC have a help booklet which will guide you through the process. It comes a at the process from the point of you you wish to be resident!
Yes it has changed, and in some ways it's less clear cut. I know the HMRC stuff isn't a great read but I'd certainly take time to look at the basic's of the Statutory Residence Test before engaging a tax advisor, there's a fairly useful pdf with flow charts and other stuff here:
https://www.gov.uk/government/public...dence-test-srt
https://www.gov.uk/government/public...dence-test-srt
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Well,......according to my chum, there's a few basic questions right at the start.
One is 'are you working full time, abroad?'.
If it's 'yes', then the 90 days, no more than 31 at a time rule is the only rider- and you are off Scot free!
Ya belter.
I'll have a proper look, but it sounds like good news for expats, and exactly the sort of info pprune usefully promulgates.
Edit. Just checked the link in the post above, which seems to confirm that as a full time overseas worker, who spends less than 90 days in the UK- and no period longer than 31 days, I'm off the hook.
Irrespective of domestic ties, house, kids etc.
Anyone read it differently?
One is 'are you working full time, abroad?'.
If it's 'yes', then the 90 days, no more than 31 at a time rule is the only rider- and you are off Scot free!
Ya belter.
I'll have a proper look, but it sounds like good news for expats, and exactly the sort of info pprune usefully promulgates.
Edit. Just checked the link in the post above, which seems to confirm that as a full time overseas worker, who spends less than 90 days in the UK- and no period longer than 31 days, I'm off the hook.
Irrespective of domestic ties, house, kids etc.
Anyone read it differently?
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As long as you are not aircrew..
The automatic non residency test has only two sections if you are crew; being employed overseas doesn't help you and the days are either 16 or 46 depending on where you were resident in the previous 3 years.
It is pretty straightforward though, in a typically murky beaurocratic fashion. Just work throught the leaflet that Wiggy has linked to.
Good luck!
The automatic non residency test has only two sections if you are crew; being employed overseas doesn't help you and the days are either 16 or 46 depending on where you were resident in the previous 3 years.
It is pretty straightforward though, in a typically murky beaurocratic fashion. Just work throught the leaflet that Wiggy has linked to.
Good luck!
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Read it again Bizjetjock,
Aircrew has nothing to do with it as long as you don't make at least 6 trips to the UK starting/ending in the UK.
Your fine with overseas employed and 90 days.
Even with the family ties stuff your fine as long as you can prove you have a home that you live in overseas and make sure you don't come back more than 90 days etc.
If you work for a UK based company and receive UK derived income then its a very different matter even if you live in Outer Mongolia.
Aircrew has nothing to do with it as long as you don't make at least 6 trips to the UK starting/ending in the UK.
Your fine with overseas employed and 90 days.
Even with the family ties stuff your fine as long as you can prove you have a home that you live in overseas and make sure you don't come back more than 90 days etc.
If you work for a UK based company and receive UK derived income then its a very different matter even if you live in Outer Mongolia.
