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Where Taxpayers and Advisers Meet

Income for non-resident paid into UK bank account

jetsetter
Posts:23
Joined:Wed Aug 06, 2008 3:16 pm

Postby jetsetter » Wed Dec 14, 2005 5:03 am

If, during a tax year in which I am not tax-resident, I receive income for work performed overseas into a UK bank account - should that income be declared on my tax return and taxable in the UK.

The money was only deposited in the UK bank account and then transferred to an overseas bank account several months later.

Many Thanks

JasonButcher
Posts:39
Joined:Wed Aug 06, 2008 3:24 pm

Postby JasonButcher » Wed Dec 14, 2005 9:03 am

If you are non - resident then you will not be subject to tax on your oveseas workdays. Even if remmited to the UK

tax me less!
Posts:983
Joined:Wed Aug 06, 2008 3:29 pm

Postby tax me less! » Wed Dec 14, 2005 11:37 am

Jason has IMHO not answered the question. The issue here is tax return completion. Is there a UK payor of the income?

jetsetter
Posts:23
Joined:Wed Aug 06, 2008 3:16 pm

Postby jetsetter » Thu Dec 15, 2005 12:45 am

Appreciate the replies guys.

Yes the money was paid from a UK company into a UK personal bank account but it was in relation to work performed overseas by someone who is non-tax resident and spent only 10 days in the UK that particular tax year.

The money was subsequently forwarded to an overseas bank account several months later.

tax me less!
Posts:983
Joined:Wed Aug 06, 2008 3:29 pm

Postby tax me less! » Thu Dec 15, 2005 1:00 am

In which case it goes on a P60 and thence onto the UK tax return.

Whether or not the income is taxable will depend on whether there were any non-incidental UK duties. The income may of course be taxable in the country of residence.

JasonButcher
Posts:39
Joined:Wed Aug 06, 2008 3:24 pm

Postby JasonButcher » Thu Dec 15, 2005 1:26 am

I believe I did answer the question in a round about way.
The individual is Non Resident only spent 10 days in the UK.
The salary is in respect of overseas work i.e non UK workdays.
As non resident then not taxable if remitted to the UK.
INHO the salary does not have to be reported on the Tax Return as the salary is not taxable.

jetsetter
Posts:23
Joined:Wed Aug 06, 2008 3:16 pm

Postby jetsetter » Thu Dec 15, 2005 1:41 am

Guys,

The income was not processed through a UK payroll.

It was invoiced from an overseas contractor at an overseas address to a UK Ltd Co.

The payment was made from the UK Ltd co to the contractor's UK bank account.

Lambs
Posts:1515
Joined:Wed Aug 06, 2008 3:15 pm

Postby Lambs » Thu Dec 15, 2005 11:14 am

You need to differentiate between 'chargeable,' and 'taxable.' It may be chargeable and therefore notifiable, (s7 TMA), even if it not actually taxable. Having said that, I, more often than not, cannot make up my mind whether something is chargeable, or taxable. Or both.

He or she is presumably usually resident and ordinarily resident in UK, but has or is spending more than one complete UK tax year outside of UK, aside from negligible return visits. By CONCESSION, treated as neither R nor OR from the date of leaving. Therefore, if Self-Assessing, required effectively to claim as such, in the tax year of leaving - split year treatment.

If, however, this is someone who is habitually neither R nor OR in the UK, who has broadly never 'set foot' here, other than negligible visits, not more than incidental to the duties of employment/self-employment in question, then the situs of the funds is entirely immaterial.

I assume that any interest earned will have been paid gross, to the effective forfeit of Personal Allowance - if indeed eligible.

Regards,

Lambs


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