Hi all,
I'm currently trying to negotiate the minefield that is international tax residency, and wanted to get some opinions. I'm trying to seek expert advice but it's proving hard to find anyone who's expertise can cover more than a single country, so any info is useful so I at least know the right questions to ask when I do speak to people!
My basic question is - if I am not in the UK for 183 days in a given year, but am also not in any other country for 183 days, where should/can my company be registered and tax paid? I'm hoping the answer is "in the UK", as my company is already set up here and this is my home country, but it's unclear to me. I've asked my accountant for his interpretation, but they can't speak on international matters.
My interest here isn't to avoid paying tax that I owe anywhere, but to minimise the hassle for me to keep contracting (for UK clients only) while temporarily abroad.
More detail:
Later this year, I will be moving to Italy for my partner to study. I'll be there from September this year until March next year, and then for a couple of months from June. For the period in between (March - June) it's likely we will be somewhere else in the EU (for a work placement for my partner), but I won't know where until nearer the time - it could be the UK. After finishing in Italy, we may return to the UK, or choose to relocate elsewhere.
Last time I asked about moving to Italy on the forum, I got some useful advice on UK umbrella companies who can pay me "PAYE" in Italy, which may still be the route I go, but I have since realised I won't be there for more than half of any given tax year (which is Jan - Jan in Italy) so am currently trying to ascertain whether I can avoid becoming tax resident in Italy (under the 183 day rule). I've hopefully found an Italian accountant who can advise me on this.
Assuming that I can avoid becoming at Italian tax resident, and so keep working through and paying myself through my UK limited, I am wondering if it is OK for me to keep running my UK limited company next year given that I will most likely only be in the UK for a few months maximum - but I won't be in any other country for more than half a year either.
This area is a total minefield it seems, it might be that its easiest for me to just pause my company for a year and work through an umbrella company who can deal with the relevant countries taxation, but if there is a way to keep running my UK company, that's my preferred option.
To me, it would be logical to say that as I am UK resident, my company has been operated in the UK for last 3 years, and the clients will be UK based, then the company is UK based - but as we all know, these things aren't always logical!
I met someone when in Italy last weekend who told me not to worry about it and just keep my UK company running and paying UK tax as that is what he did, but that doesn't seem that sound to me
Any thoughts welcome!
Thanks,
Tom
I'm currently trying to negotiate the minefield that is international tax residency, and wanted to get some opinions. I'm trying to seek expert advice but it's proving hard to find anyone who's expertise can cover more than a single country, so any info is useful so I at least know the right questions to ask when I do speak to people!
My basic question is - if I am not in the UK for 183 days in a given year, but am also not in any other country for 183 days, where should/can my company be registered and tax paid? I'm hoping the answer is "in the UK", as my company is already set up here and this is my home country, but it's unclear to me. I've asked my accountant for his interpretation, but they can't speak on international matters.
My interest here isn't to avoid paying tax that I owe anywhere, but to minimise the hassle for me to keep contracting (for UK clients only) while temporarily abroad.
More detail:
Later this year, I will be moving to Italy for my partner to study. I'll be there from September this year until March next year, and then for a couple of months from June. For the period in between (March - June) it's likely we will be somewhere else in the EU (for a work placement for my partner), but I won't know where until nearer the time - it could be the UK. After finishing in Italy, we may return to the UK, or choose to relocate elsewhere.
Last time I asked about moving to Italy on the forum, I got some useful advice on UK umbrella companies who can pay me "PAYE" in Italy, which may still be the route I go, but I have since realised I won't be there for more than half of any given tax year (which is Jan - Jan in Italy) so am currently trying to ascertain whether I can avoid becoming tax resident in Italy (under the 183 day rule). I've hopefully found an Italian accountant who can advise me on this.
Assuming that I can avoid becoming at Italian tax resident, and so keep working through and paying myself through my UK limited, I am wondering if it is OK for me to keep running my UK limited company next year given that I will most likely only be in the UK for a few months maximum - but I won't be in any other country for more than half a year either.
This area is a total minefield it seems, it might be that its easiest for me to just pause my company for a year and work through an umbrella company who can deal with the relevant countries taxation, but if there is a way to keep running my UK company, that's my preferred option.
To me, it would be logical to say that as I am UK resident, my company has been operated in the UK for last 3 years, and the clients will be UK based, then the company is UK based - but as we all know, these things aren't always logical!
I met someone when in Italy last weekend who told me not to worry about it and just keep my UK company running and paying UK tax as that is what he did, but that doesn't seem that sound to me
Any thoughts welcome!
Thanks,
Tom
Comment