Working in a Tax Free country

@if ®afiq · 23 Apr 2008 at 09:00

I may have the opportunity to work in a Tax Free country for 1-3 years, but am finding it hard to find out the exact rules that will effect me. I've been told that if I return to the UK within six months for whatever reason then I have to pay tax?

TIA

Dr House · 23 Apr 2008 at 09:04

I could be wrong but as long as you are not in the uk for over 90 days you do not have to pay tax in the uk

Raymond Lin · 23 Apr 2008 at 09:04

I thought it was 180 days

@if ®afiq · 23 Apr 2008 at 09:04

Thanks - Would that be for those days worked and not the entire year?

@if ®afiq · 23 Apr 2008 at 09:07

I think I may have found the answer here: http://www.hmrc.gov.uk/pdfs/ir20.htm#leaving

Ex-RoNiN · 23 Apr 2008 at 10:33

What if you reside abroad, but commute to work to the UK on a daily basis - are you free from income tax, or do you have to pay income tax on your UK tax free earnings in your country of residence?

z3b3dy · 23 Apr 2008 at 10:38

Ex-RoNiN said:
What if you reside abroad, but commute to work to the UK on a daily basis - are you free from income tax, or do you have to pay income tax on your UK tax free earnings in your country of residence?

They would most likely still deem you resident in the UK for tax purposes. When you apply to become non-resident there is no guarantee they will actually give you that status and can turn you down if they think that you are still too tied to the UK.

Regarding the 90 day rule, it's best to only spend 60 to 70 days a year in the UK as constantly using up all your allowance can be frowned upon. The main rule is less than 183 days in any one tax year and not more than an average of 90 days per tax year over a 4 year period.

Vonhelmet · 23 Apr 2008 at 17:56

Exactly what are the arrangements you'll be working under, for how long, will you be coming back, will you be remitting money to the UK, etc.

csmager · 23 Apr 2008 at 18:31

Ex-RoNiN said:
What if you reside abroad, but commute to work to the UK on a daily basis - are you free from income tax, or do you have to pay income tax on your UK tax free earnings in your country of residence?

If you are in the UK for more than 90 days in one year, then you are deemed to be resident. When you're resident, you have to pay tax on your UK earnings.

If you are non-domiciled too, you only have to pay tax on UK earnings - unless you remit any other earnings to the UK too.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_10026136

That link explains it, but it's about as clear as mud there.