Tax
Why do you feel it’s appropriate to work in the UK but pay no tax for the services that you may end up using.
I dan take a disagreement with the level of taxation but to avoid it entirely is immoral.
I dan take a disagreement with the level of taxation but to avoid it entirely is immoral.
To the OP...not sure of the exact details but you might want to look for any threads here relating to Portugal.
Other than that it looks like the outrage bus has been boarded by some, so to them:
If an individual is commuting in/out of the UK for work but resides with family "elsewhere" and they are using facilities "elsewhere" (healthcare, schooling etc) then I certainly don't see why the UK should be claiming the lion's share of tax on income ...just a IMHO of course.
To further reduce the angst dare I point out that many in the situation described by the OP still pay the full eye watering amount of UK NI (no reduction to that) and also a proportion of Income Tax based on time spent working in the UK.
What happens "taxwise" when you get home to family "elsewhere" is down to things such as Double Taxation agreements and local arrangements.
Other than that it looks like the outrage bus has been boarded by some, so to them:
If an individual is commuting in/out of the UK for work but resides with family "elsewhere" and they are using facilities "elsewhere" (healthcare, schooling etc) then I certainly don't see why the UK should be claiming the lion's share of tax on income ...just a IMHO of course.
To further reduce the angst dare I point out that many in the situation described by the OP still pay the full eye watering amount of UK NI (no reduction to that) and also a proportion of Income Tax based on time spent working in the UK.
What happens "taxwise" when you get home to family "elsewhere" is down to things such as Double Taxation agreements and local arrangements.
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To the OP...not sure of the exact details but you might want to look for any threads here relating to Portugal.
Other than that it looks like the outrage bus has been boarded by some, so to them:
If an individual is commuting in/out of the UK for work but resides with family "elsewhere" and they are using facilities "elsewhere" (healthcare, schooling etc) then I certainly don't see why the UK should be claiming the lion's share of tax on income ...just a IMHO of course.
To further reduce the angst dare I point out that many in the situation described by the OP still pay the full eye watering amount of UK NI (no reduction to that) and also a proportion of Income Tax based on time spent working in the UK.
What happens "taxwise" when you get home to family "elsewhere" is down to things such as Double Taxation agreements and local arrangements.
Other than that it looks like the outrage bus has been boarded by some, so to them:
If an individual is commuting in/out of the UK for work but resides with family "elsewhere" and they are using facilities "elsewhere" (healthcare, schooling etc) then I certainly don't see why the UK should be claiming the lion's share of tax on income ...just a IMHO of course.
To further reduce the angst dare I point out that many in the situation described by the OP still pay the full eye watering amount of UK NI (no reduction to that) and also a proportion of Income Tax based on time spent working in the UK.
What happens "taxwise" when you get home to family "elsewhere" is down to things such as Double Taxation agreements and local arrangements.
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Especially as we wont see anything like the perks certain earlier generations got in terms of state pension, welfare and opportunities to work.
Then we could ask why should Govts need any taxes at all from us when they have the proverbial horn of plenty. When we work and get $1000 gross, straight away tax takes at least $300, then we spend about $500 in the next week just to live, on things that include at least another $200 in tax. So, by the end of the week, we've just given half our pay to Govt, but that's not the best part. When Govt spend any money, it comes back to them, even if they throw it around like drunken sailors. Therefore, the notion that we even need to pay tax is absurd if we knew the true figures behind this scam. Walter J Burien calculated that in the US, tax provided just 1/3 of Govt revenue, the remaining 2/3 was from investments on capital. But it gets even better. Govt funds never lose, unless they're set up for public benefit. Why? Because they make the rules, so they never back something they know won't win because it doesn't suit their long term agenda. In fact, they have so much money invested at high return on zero tax that they can even afford to crash a few of their own investments if it suits their plans to do so. Remember, Govt win whether we win or lose. In fact, it can be argued that they win more when we lose.
If you want further reason, we could talk about how all wars are ploys to plunder countries at taxpayers expense on the justification that they're for our defence. After that, it gets ugly. Seriously ugly. Do you need to know any more?
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No-one really likes to pay tax. We tolerate a rate of taxation which we perceive is fair in return for the things that the state gives us in return. It seems almost the natural scheme of things that if we can reduce the amount of tax that is to be paid, we will, if we perceive that the tax has risen above our perception of fair. Perhaps the OP is sensibly predicting a Corbyn government in waiting and the re-introduction of super taxation for the perceived wealthy. A sensible plan to mitigate over-taxation might well be re-locating and commuting to the UK. Just as people did during the 1970's.
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Andorra as a passive resident, 90 days per year in the country as a requirement. Flat tax of 10% on anything above €40000 if you are married, (above €24000 if single). Many pilots living here, but even on a full time long haul schedule it can be a tough commute. I myself do a 30/30 rotational schedule.
I would choose somewhere that has an easy commute with plenty of flights or transport links. Spain, Portugal are pretty good. I know there are pilots that live in Monaco and Andorra, but it is a bit of a drag of a commute.
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As mentioned, there are nowadays very few places in Europe where you can (legally) avoid paying taxes. It’s all fun and games until it’s not.
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I know quite a few who are doing the following in Spain:
Quote:
In accordance with article 7p of the Spanish Personal Income Tax (PIT) Law. If certain conditions are met, Spanish tax residents are entitled to an exemption in their tax return for the employment carried out outside Spain of up to 60,100 euros per year.
Therefore, everyone who has worked abroad temporarily, keeping residency in Spain has right to the exemption of this article if the certain requirements are met, such as:
Quote:
In accordance with article 7p of the Spanish Personal Income Tax (PIT) Law. If certain conditions are met, Spanish tax residents are entitled to an exemption in their tax return for the employment carried out outside Spain of up to 60,100 euros per year.
Therefore, everyone who has worked abroad temporarily, keeping residency in Spain has right to the exemption of this article if the certain requirements are met, such as:
- The work must be developed physically abroad.
- The employment must be carried out for a company not resident in Spanish territory.
- In the country where the work is performed there must be an identical or similar tax to the Spanish PIT. This requirement shall be considered achieved whenever there is Double Tax Treaty signed between both countries, that includes a clause of information exchange. This cannot be effective if the country of destination is qualified as a tax haven.
- The exemption has a limit of 60,100 annual euros.
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I was talking about fully exempt.
I suppose if that’s the kind of number we are talking about then it can be worth it. With any kind of decent sized salary you will still be paying a lot in taxes.
I suppose if that’s the kind of number we are talking about then it can be worth it. With any kind of decent sized salary you will still be paying a lot in taxes.
As far as Spain goes, I understand that minor children don’t count as a residence tie. I appreciate that for the vast majority of pilot commuters that wouldn’t be particularly relevant, as their children would be cared for by the mother/spouse that does count as a tie.
The €60,100 deduction does come in handy though.
The €60,100 deduction does come in handy though.
It’s not so much where you live, it’s where you don’t live. It’s necessary to pass the non-residency tests in the UK, then either find a country with a favourable tax regime for non-nationals, e.g. Portugal, or not spend long enough anywhere outside the UK to become liable for taxation under their rules.
If the flights you operate go in or out of the UK, then some of that counts as work and is taxable but when set off against allowances will leave you in a low tax bracket with very little to pay.
If the flights you operate go in or out of the UK, then some of that counts as work and is taxable but when set off against allowances will leave you in a low tax bracket with very little to pay.
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https://tradingeconomics.com/country...ncome-tax-rate
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It's rather ironic how much flexibility there is with the HMRC Statutory Residence Test if you turn the OP's situation around and wish to have a residence in the UK and commute and work for a long haul operator that is based outside of the UK. 
I doubt there would be many who would refuse the ability to legally pay less tax if any at all, given the opportunity presented itself. It will not take a mathematician to invest the surplus capital and achieve a far better return than one would earn through the state!
I doubt there would be many who would refuse the ability to legally pay less tax if any at all, given the opportunity presented itself. It will not take a mathematician to invest the surplus capital and achieve a far better return than one would earn through the state!
Can you please explain how you satisfy the uk non tax resident criteria at the same time as not spending enough time in Portugal to be classified as a tax resident ( full or non-habitual). Gaming the system between two EU countries to not pay tax in either sounds like it will end in tears
