Income tax and residing elsewhere

Scuzi

Scuzi

Scuzi

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Joined
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I recall some members here being knowledgeable about income tax and whatnot so I thought I'd ask here first before going elsewhere.

Let's say, for example, I worked a part time job in the UK but spent most of my time living in the USA. The pattern would be working 6 days followed by 14 days off. Rinse and repeat. So If I was in the UK for 7-8 days at a time (working 6 of those) and living in the USA for the other 12-13, would I still have to pay full income tax on my salary as well as national insurance?

I found this on the HMRC website:
When are you non-resident for UK Income Tax?

You'll be treated as non-resident from the day after you leave the UK if you can show:

* you left the UK to go abroad permanently or your absence and full-time work abroad lasts at least the whole tax year
* your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years

From that I understand that if I go to live in the USA, as long as I spend less than 183 days in the UK, I don't have to pay income tax. Is this correct? Would it make a difference if I was also earning a salary in the US?

Is there anything else I should read up on? I'm not interested in anything dodgy but if it is legal I would like to know more.

Thanks :)
 
Scuzi said:
From that I understand that if I go to live in the USA, as long as I spend less than 183 days in the UK, I don't have to pay income tax. Is this correct? Would it make a difference if I was also earning a salary in the US?
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Income tax on your worldwide income - is the bit that's missing from that sentence. Any UK source income will still be subject to UK income tax, irrespective of where you are resident.

To work out if you will or won't be resident, along with a load of questions you never thought of asking, the document to read is HMRC 6
 
If the services are carried out in the UK you'll be taxed wherever you are resident.

Which csmager has already said, now that I've read his post a bit more closely.
 
There goes that idea! Now I just need to figure out if I'll have to pay tax in the US on my UK income :eek:
 
after having been out of the UK for 1 year this month I am truely hating the "tax year" part of all this, i cant get an NT code unless i dont go back to the UK till after april.... im just praying work dont make me go back to england before then, all my tax back would be a very nice bump
 
once in the US tax system there is no escape as well, they tax their citizens worldwide no matter how long they are out of the country
 
Scuzi said:
There goes that idea! Now I just need to figure out if I'll have to pay tax in the US on my UK income :eek:
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Bit of a long read but may provide some useful information:

https://www.kpmg.com/Global/en/Issu...ts/US-taxation-foreign-citizens-August-09.pdf

By no means do I know the US tax system, however under Article 4 of the UK/USA Double Taxation Agreement you may be considered to be treaty non-resident in the US. This will depend on your own facts and circumstances but if you consider your personal and economic relations to have remained in the UK, the treaty may override the domestic legislation of the US meaning your UK employment income is only taxable in the country where you are deemed to be resident by the treaty.

Ultimately if both countries want to tax you under their domestic legislation you'd be able to claim a foreign tax credit on doubly taxed income.

Further information on HMRC's dual resident help sheet.

http://www.hmrc.gov.uk/helpsheets/hs302.pdf
 
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