working UK but going home abroad

[Jed701]

Hello, thank you in advance for advising.

I’m a 24/7 live-in care assistant, working ongoing 1-2 weeks and over summers 3 weeks a month a and then going home for rest of the month in other EU country (although I do have a registered UK address to receive correspondence and where I stay sometimes in between my shifts). This makes me present in UK between 17-29 weeks in a tax year. I have been doing this for 5 years on self-employed basis and paid all taxes that after my accountant filled the SA was due, I think it was considered I am resident (if that has to be shown there?)

Although it’s been a while I am doing this and I know other women who is doing this kind of job -working their shift and then going home (many women from Eastern and North-East Europe do that) and it never seemed a problem, but after reading different resident-non-resident related articles on HMRC I suddenly started worry have I been entitled to have the Personal Allowance and has I paid the right amount of the tax. I don’t have family ties or properties in UK, just an permanent work for all these years. Back home I don’t have my own family or kids, don’t own the property, neither ever had a job alongside my UK job - I stay with my parents and then come back to my shifts.

After these years working in this job I realised being quite isolated and recently started thinking on going back to the country I originate and trying to do something else (also before the Brexit makes the travel complicated and I stay without job), and I would like to have my own family one day - question which I have left a side for a long time. I am worried after some time it could turn out that I haven’t been entitled to an Personal Allowance and that I have to pay tax on all my earnings (those who were "covered" by allowance) through these years with some penalties which would definitely ruin any possible future plans.

The question then is - have i been entitled to a Personal Allowance and does my traveling home somehow could make it complicated? Thank you for all comments regarding my situation.

[AmanSood]

Hi Jed701, you will most likely be UK tax resident given the time you are spending in the UK. In addition, assuming HMRC for whatever reason said you were non-UK tax resident, then as you are a EU/EEA national, you would be entitled to a UK tax free personal allowance and therefore there should be no additional UK taxes to pay and I therefore wouldn't worry about this.

Hope this helps!

Aman

[Jed701]

Hello, Aman
Thank you for reply. I think the problem is that I don’t orientate well within all different information out there and when I read it I find it stressful because I am not local. HMRC never said anything, assessments has been alright and no more tax has been asked in addition to what has been due after deducting personal allowance. Just had an sudden fear that I have got something wrong and one day I might be double taxed for whole my life as I am up to change and would be sad that something like that stops me. Thank you for your comment. I did some more reading into it and realised that being resident is not only counting days which are spent in country and if I got it right then residencies also can vary – in UK I am tax resident due to my permanent [and only] work and as it has been so far an advantage of Europe for free movement and choose where to work.

If that’s not polite to ask something more, maybe you could shortly explain what happens if I would start to work somewhere else in Europe (more than I would work in UK) but still do some additional work in UK? For example – if I work in country I have originated but do additional summer work in UK – how would I be taxed? Thank you for giving your time to help others here on forum!

[RMC]

1. All EEA nationals are entitled to UK personal allowance.

2. Regarding tax-residence, most probably under Double Taxation Agreement with your home country you are tax-resident there and as such not tax-resident in the UK. DTAs are available on the net, so you can look it up. Consequently you are liable to UK tax only on your UK earnings and not on earnings in any other country. Strictly, you should declare your UK earnings in your home country; tax paid in the UK would be credited against tax payable there. It seems to me that not many EU countries supplying workers to the UK pursue it.

If you get a short-term job in another EU country, respective DTA will apply to that and, again, you will be tax-resident only where your permanent home is.

[Jed701]

RMC

tax paid in the UK would be credited against tax payable there.

Theoretically would that mean – that the money earned UK will be taxed in UK (if ever – as there are are still personal allowance) but these earnings would still be liable to the home country taxes where there is no threshold (that means– taxation in force from the first cent that is earned) and the difference between the home country rate and UK tax which is deducted (only above allowance) is still to be paid in country where I would be tax resident?

I had a look for the DTA between UK and home country and there is treaty in force and the rules to avoid double taxation in EU and EEA, but there is very little information what does it actually mean and by saying “avoid double taxation” – does it mean “not apply two country taxation systems on one income” or does it mean “not to pay more in tax than you would pay in your home country” (which means applying two taxation systems, just deducting by amount that has been (if ever) already paid in UK).

I gradually start to recall why I have been stuck for so long in my job UK– not that easy to understand what is my rights and duties in more complex situations and Im affraid that sadly the country I come from has no strong informative and support options available (thats a whole different story), but I hope I will work out ir somehow once. Thank you for your help and time devoted to go in details!