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Where Taxpayers and Advisers Meet

Staying abroad and working for a UK company as self-employed

vickit
Posts:4
Joined:Tue Apr 25, 2017 6:06 pm
Staying abroad and working for a UK company as self-employed

Postby vickit » Tue Apr 25, 2017 6:25 pm

Hi, I'm hoping someone can help me. I am registered as sole trader, I work for 1 company based in the UK, all the work is done remotely. For personal reasons I have to move abroad (Poland) - I will continue working while there. The problem is, I don't know how long I'll be away for - it might even be permanent but it also might be for 2-3 months - it all depends on how the situation develops. I will not have a permanent UK address anymore. I'd like to know how long I can be away for before the HMRC will classify me as non-resident and I'll have to start paying taxes in Poland? I know one way to determine tax residency is that you have to spend 183 days (6 months) in the UK. Is it therefore safe to assume I can live and work abroad for half a year and continue paying UK tax in that period? Do I need to notify HMRC before I move?

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Staying abroad and working for a UK company as self-employed

Postby GlobalTaxAdviser » Tue Apr 25, 2017 11:58 pm

Its not as simple as 183 days

You will have to look at the Statutory Residency Test

You may see if you qualify under split year. If not you could be still deemed to be tax resident in both countries for 2017/18

Kind Regards

GTA

vickit
Posts:4
Joined:Tue Apr 25, 2017 6:06 pm

Re: Staying abroad and working for a UK company as self-employed

Postby vickit » Wed Apr 26, 2017 11:08 am

Thank you for the reply.
The problem is, the Residency Test seems to assume that I already know how many days I'll be spending in the UK in the current tax year (2017/18) and the ties I will maintain with the country - such as accommodation. I my case this is not something I can be sure of because I simply don't know how long I'll be abroad for or whether I'll be coming back to the UK at all. It might be the case that I'll stay in Poland for the whole tax year, in which case I would be classed as non-resident in the UK and liable for Polish tax. But, in order to pay taxes in Poland while working as a freelancer for a UK company I have to register as self-employed here and de-register in the UK. I would only enter the Polish system from the date of the registration, I would not be able to pay taxes owed before then and as UK non-resident I wouldn't be liable for UK tax either. I really have no idea what to do.

vickit
Posts:4
Joined:Tue Apr 25, 2017 6:06 pm

Re: Staying abroad and working for a UK company as self-employed

Postby vickit » Wed Apr 26, 2017 11:12 am

There is a double taxation treaty in force between Poland and the UK so I would only be liable for tax in one country.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Staying abroad and working for a UK company as self-employed

Postby bd6759 » Thu Apr 27, 2017 10:45 pm

Whether you are liable to taxes in Poland is a matter of Polish domestic law. It has nothing to do with UK law, or what you tell HMRC.

If, under the domestic law of both countries, you are liable to tax in both, the DTA will determine which has the taxing rights.

vickit
Posts:4
Joined:Tue Apr 25, 2017 6:06 pm

Re: Staying abroad and working for a UK company as self-employed

Postby vickit » Fri Apr 28, 2017 9:09 am

Yes, I realise that. I don't think I'm explaining myself very well. What I have a problem with is that I have to move abroad for a period of time which cannot be determined at present and would like to know how long I can stay away for before HMRC begins to class me as non-resident in the UK. The problem is, I can't notify them in advance and would like to know if it matters. What will happen if, say, I contact HMRC after 11 months and tell them I have been fully resident abroad for that period and will not be coming back to the UK?

Thank you for your help!

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Staying abroad and working for a UK company as self-employed

Postby GlobalTaxAdviser » Fri Apr 28, 2017 1:01 pm

First point is to determine rather you will be UK Resident then you can complete your tax returns accordingly.

Residency is the key.

Later on you can always amend your tax returns if you are deemed to be non resident in the UK if say you are eligible for split year.

Kind Regards

GTA

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Staying abroad and working for a UK company as self-employed

Postby bd6759 » Fri Apr 28, 2017 6:17 pm

HMRC won't class you as non-resident. Residence is a question of fact that you have to establish and self-assess in your tax return. HMRC may disagree with your assessment, but that is a different matter.

Your problem at the moment is not UK tax, but Polish tax. You will need to talk with the Polish tax authorities to determine whether you have a libaility there.

sscarduzio
Posts:1
Joined:Fri Aug 18, 2017 3:39 pm

Re: Staying abroad and working for a UK company as self-employed

Postby sscarduzio » Fri Aug 18, 2017 3:44 pm

HMRC may disagree with your assessment, but that is a different matter.
Where can I find some documentation on what evidence do I need to keep in order to back my self-assessment claims in case of inspection?


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