Overseas Taxation

This is one subject that you must use a tax agent. Do not start the process before we speak with you!

We cannot print a typical example because of the large amount of personal information we need to gather to help you through the mine field of Residence. Every client is unique. You have to trust our experience. We offer a free initial visit to your home or workplace

This Information is a light guide to a very complex Taxation. 

First, you have to have a strategy, the most effective form of tax planning. You have to prove your residency for tax purposes. In practice - you should be aiming to be a non-resident. If you are going to work abroad you might pay more tax, save some tax or NO TAX to pay.
The UK Overseas Taxation Legislation has built up over the years and can be a very difficult subject to understand. It balances on if you are Resident or Non Resident and where the Money is earned. Often Double Taxation Agreements are also involved.  The annual number of social events you attend in the UK may be a decisive factor.

In the case of a full-time employment abroad, you'll be treated as non-resident from the day after you leave the UK if:

• Your absence and full-time work abroad lasts at least a whole tax year, and
• Your visits to the UK are less than 183 days in any tax year, and average less than 91 days per year over the period of your employment abroad.

If you work for a UK company overseas, you may continue to pay tax under PAYE, so you need the SA Tax Return to claim 100% of your tax back. If you work for a non-UK company you must complete a tax return only if you remain resident in UK

If you work for a non-UK company in a country that has a Double Taxation Agreement you must complete a tax return only if you remain resident in UK. Under the rules you could end up paying some UK.

In all matters in Overseas Tax it requires an Online SA100 Self Assessment Return and a selection of Forms that could be one or more of these forms or others:

• 64-8 Form: Authorising Your Agent
• CF83 Form: Application to pay National Insurance contributions abroad
• P85 Form: Leaving the UK
• P87 Form: Tax relief for expenses of employment
• R38 Form: Tax Claim
• R40 Form: Claim For Repayment
• P50 Form: Claiming Tax Back when you have stopped working
• NRL1 Form: Non-resident Landlords Scheme – Application to receive UK rental income without deduction of UK tax
• NRL6 Form: Non-resident Landlords Scheme - Certificate of Tax Liability
• P 91 Form: Employment Record
• P45 Form: Leaving Employment ( for Gross Pay and Tax paid)
• P60 End of Year Certificate (Annual Summary of your Employment Income)

Some Tax bites for non-residents

• You Pay UK tax on any employment work duties which you carry out in the UK during the Year
• Although you are not resident in the UK you will still pay UK tax on most pensions from sources in the UK.
• You will always be liable to UK tax on investment income from UK sources.
• Although you are not resident in the UK you will still be liable to pay UK tax on investment income from UK sources, although there is a restriction on your tax liability for investment income.
• Most investment income from sources outside the UK and some from sources in the UK will not have had UK tax deducted before it is paid to you. This does not make it ‘UK tax-free’ and UK tax might be due on such income.
• Property Rent income is liable for UK Tax and may be deducted by the lettings agency. You need to make an Application to receive “UK rental income without deduction of UK tax”.

To ensure you get the maximum possible reduction of Tax (hopefully 100%) and avoid mistakes and delays, we recommend that you use professional help. Call us now