Living in South Africa, earning in the UK

[jkmcn69]

We moved to South Africa at the end of 2007 and my husband has only just got work but through his old contacts in the UK. His contracts are freelance and he now has multiple clients. We don't own anything in the UK but we have a small amount of money in UK bank accounts (GBP3,000) and National Savings Bonds worth GBP21,000. He will be paid gross of any tax.

How do we operate this in terms of UK and South African tax?

Thanks
Jane

[thehiker99]

Jkmcn69

I can't comment on the National Savings Bond.
In terms of the money in the savings account, you should be able to have any interest paid gross by filling in HMRC 105 form.

In terms of income tax.
In South Africa is you work outside South Africa, and you spend less than 6 months a year IN South Africa, AND at least one of your overseas trip is longer than 9 weeks, your overseas earnings are free of SA tax.
This I know because I have worked, and still do work, with many expat South Africans in various places. I do believe it's under review, and you should get the advice of a SA accountant on the matter.

What ties do you still have with the UK? Family, property etc. How much time do you spend there in a year?
Have you really "LEFT", and can you prove it? (ie proof of full time residence in SA).

Unless your husband is working in the UK, or you've maintained substantial ties there, or he spends long periods there, I doubt that there is anything to pay in the UK.

Basically need some more info, in order to give some advice.

Regards

Le randoneur quatre vingt dix neuf.

[jkmcn69]

We have no ties to the UK anymore. No family, property and we don't spend any time there per year. We have definitely physically and financially left other than the small finances I mentioned.

My husband is a citizen of SA and I am a permanent resident.

My husband physically works from home in SA over the internet.

From what you have written it seems we are free of UK tax but fully liable for SA tax.

Kind regards
Jane

[etf]

Hi Jane,

From the information provided, it does look as though your husband will need to consider South African rather than UK tax issues.

I suggest as a starting point, that you take a look at PWC's guide on South Africa which you can access through the useful links section of the website below. It contains information on both residence and self employment in South Africa.

Kind Regards

etf

http://theexpatriatetaxfactory.com