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Where Taxpayers and Advisers Meet

Tax Residency for Guest Entertainer on Cruise Ships

globalmusician
Posts: 4
Joined: Mon Jan 26, 2015 12:54 pm

Tax Residency for Guest Entertainer on Cruise Ships

Postby globalmusician » Mon Jan 26, 2015 1:26 pm

I am a UK citizen and resident and work as guest entertainer on cruise ships. All my income is earned foreign and paid through an agency in the UK. I spend less than 90 days each year in the UK. I am not classed under the seafarers allowance because I am not considered crew on the cruise ship as was recently shown in a High Court Case last year. In 2004 my accountant filed to have me removed from the UK Tax System and so I do no file a tax return each year. I am now beginning to spend a lot of time in the USA - not working - purely as a tourist. However, I am getting very confused as to where my tax residency should be or if I can be classed as a tax nomad? With the amount of time I am spending in the USA I could be classed as a Non Resident Alien for tax purposes. However, how does that work with the US/UK tax treaty if I am not filing UK tax returns?

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

Re: Tax Residency for Guest Entertainer on Cruise Ships

Postby GlobalTaxAdviser » Mon Jan 26, 2015 2:23 pm

Hi

Entertainers and sportsmen have different tax rules

Is tax withheld from your payment ?

The double tax treaty under the tie breaker (see Article 4) should determine your primary residence

Thanks

Sash

globalmusician
Posts: 4
Joined: Mon Jan 26, 2015 12:54 pm

Re: Tax Residency for Guest Entertainer on Cruise Ships

Postby globalmusician » Mon Jan 26, 2015 2:36 pm

Hi Sash,

thank you for your reply. Tax is not withheld from my payment. I would be classed as self employed. Where can I find information on this tie breaker you mention?

DavidTreitel
Posts: 229
Joined: Thu Aug 16, 2012 4:31 pm

Re: Tax Residency for Guest Entertainer on Cruise Ships

Postby DavidTreitel » Fri Jan 30, 2015 9:00 am

Are you a US resident under the substantial presence test?

bd6759
Posts: 3252
Joined: Sat Feb 01, 2014 3:26 pm

Re: Tax Residency for Guest Entertainer on Cruise Ships

Postby bd6759 » Fri Jan 30, 2015 9:18 am

Hi

Entertainers and sportsmen have different tax rules

Is tax withheld from your payment ?

The double tax treaty under the tie breaker (see Article 4) should determine your primary residence

Thanks

Sash
If he is not resident in the UK, the UK/USA (or any UK treaty) is irrelevant.

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

Re: Tax Residency for Guest Entertainer on Cruise Ships

Postby GlobalTaxAdviser » Fri Jan 30, 2015 12:01 pm

Hi

Entertainers and sportsmen have different tax rules

Is tax withheld from your payment ?

The double tax treaty under the tie breaker (see Article 4) should determine your primary residence

Thanks

Sash
If he is not resident in the UK, the UK/USA (or any UK treaty) is irrelevant.
We do not know if he is non resident in the UK based on limited facts

globalmusician
Posts: 4
Joined: Mon Jan 26, 2015 12:54 pm

Re: Tax Residency for Guest Entertainer on Cruise Ships

Postby globalmusician » Fri Jan 30, 2015 12:08 pm

Thank you for all you comments. I am in fact resident in the UK. I am just not in the country for more than maybe 30 days a year.

bd6759
Posts: 3252
Joined: Sat Feb 01, 2014 3:26 pm

Re: Tax Residency for Guest Entertainer on Cruise Ships

Postby bd6759 » Fri Jan 30, 2015 11:29 pm

Thank you for all you comments. I am in fact resident in the UK. I am just not in the country for more than maybe 30 days a year.
If you are UK resident, your earnings would be taxed in the UK. You said that they were not.

globalmusician
Posts: 4
Joined: Mon Jan 26, 2015 12:54 pm

Re: Tax Residency for Guest Entertainer on Cruise Ships

Postby globalmusician » Fri Jan 30, 2015 11:35 pm

I live in the UK but I do not have to file a tax return here because I am not in the country for more than 90 days each year. So for tax purposes I am Non Resident.

bd6759
Posts: 3252
Joined: Sat Feb 01, 2014 3:26 pm

Re: Tax Residency for Guest Entertainer on Cruise Ships

Postby bd6759 » Sat Jan 31, 2015 12:10 pm

I live in the UK but I do not have to file a tax return here because I am not in the country for more than 90 days each year. So for tax purposes I am Non Resident.
That's why I said the UK tax treaties are irrelevant. If you have not UK tax liability there can be no double taxation!

However, based on the limited facts, it seems that you have remained resident in the UK throughout the period. In 2004 you would only be not resident if you intended to leave the country permanently (which was not the case) or were employed under a contract that would last a complete tax year, which again appears not to be the case.

You need to apply the SRT to your current situation.


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