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Where Taxpayers and Advisers Meet

Working abroad

urbanmonkee
Posts: 2
Joined: Thu Mar 22, 2018 6:56 am

Working abroad

Postby urbanmonkee » Thu Mar 22, 2018 7:13 am

Good morning,

I am shortly to be leaving the UK to take up a 12 month contract overseas (with the option to extend longer if desired / required).
I will be paying a Withholding tax on my gross earnings in the country where I will be working and the balance remitted to the UK.
Are there any tax implications in the UK?
Would I be able to reclaim the withholding tax?

Many thanks in advance

maths
Posts: 7550
Joined: Wed Aug 06, 2008 3:25 pm

Re: Working abroad

Postby maths » Thu Mar 22, 2018 9:21 pm

The question is whether or not you will remain UK resident. If you do, any foreign tax paid should be creditable against any UK income tax charge on the earnings.

If you become non-resident no UK income tax charge will arise on the foreign earnings.

urbanmonkee
Posts: 2
Joined: Thu Mar 22, 2018 6:56 am

Re: Working abroad

Postby urbanmonkee » Fri Mar 30, 2018 10:18 am

Thank you for your reply.

I am envisaging I will become non-resident as I will be outside of the UK for 12 months - although this will be a split year (straddling tax years).

So if I am non-resident and pay the overseas withholding tax does it matter if the net amount is paid directly to a UK bank account from my employer, or does the net amount have to stay outside of the UK.

I am also wondering about National Insurance contributions?

Many thanks in advance


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