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Where Taxpayers and Advisers Meet

Where to pay tax?

rodders27
Posts:1
Joined:Wed Feb 06, 2019 9:12 pm
Where to pay tax?

Postby rodders27 » Wed Feb 06, 2019 9:28 pm

I work for a UK company only remotely. I am EU national. All my work is for the UK company for UK only clients, full time all year for over 8 years. I currently pay tax in the UK.
I left the UK two years ago after 14 years there as a resident.
I have not been back to the UK for two previous years at all.
I do not own property in the UK or anywhere else.
I have no dependants, family is in my home country/UK.

I will be back in the UK for 6 months from April 5th 2019 for over 183 days (probably around 185 without break). After this I will be travelling between Spain/Home EU country(not UK), spending less than 183 days in any one country, renting as required. It is unlikely i would return to UK for over 7 days in any year.

Question is, where would I be liable to pay tax based upon this situation going forward? I would prefer the UK, but can anyone help me understand what are my potential liabilities.

etf
Posts:1278
Joined:Mon Nov 02, 2009 5:25 pm

Re: Where to pay tax?

Postby etf » Thu Feb 07, 2019 1:01 pm

This is likely to be a good news/bads news situation for you.

From a UK income tax perspective, if you qualify as non-UK resident and perform all of your work duties outside of the UK, you should not have to pay UK income tax on your regular earnings. I suggest you seek a refund from HMRC.

On the flip side, you should probably have been paying tax where you have been living/performing your work duties and I suggest you seek local assistance to regularise your historical reporting there.

Under the UK statutory residence test, you will automatically be UK resident in any tax year that you are present in the UK for 183 days i.e. 2019/20.

You will also need to carefully review the split tax year conditions which if met allow a tax year to be split into resident/non-UK resident periods.

etf
Posts:1278
Joined:Mon Nov 02, 2009 5:25 pm

Re: Where to pay tax?

Postby etf » Thu Feb 07, 2019 1:10 pm

I should have added that the availability of split tax year treatment can depend on your UK resident status in the prior UK tax year.

Double tax treaties can come into the mix where split tax year treatment is not available, adding another layer of complexity.


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