Resident in Guernsey for tax purposes wanting to do contracting in UK

[panders]

Good evening

i moved to Guernsey a couple of years ago and am in a permanent role, but the cost of living here is causing me to explore contracting again with ample lucrative opportunities in my field. I intend to seek advice from a professional but wondered if anyone knows what the tax situation would be as I know it’s usually UK contractors that come to the Channel Islands not the other way around :-)

[Fred Bloggs]

As a general starting point, you pay tax on income where you work.

[panders]

Thanks for replying….that sounds too easy I suspect it might be a bit more complicated.

[Fred Bloggs]

Thanks for replying….that sounds too easy I suspect it might be a bit more complicated.

Not really. If you sit in the client's office or on the beach in the UK you pay UK tax. That's the point you start from as it's the default situation globally.

There are hundreds of threads here asking the same question. You will soon get the hang of it.

[BlasterBates]

Thanks for replying….that sounds too easy I suspect it might be a bit more complicated.

If you travel to the UK to work, it will be taxed in the UK and in addition should be declared on your tax return in Guernsey. It probably won't be taxed in Guernsey due to the double taxation treaty. Non-residents pay income tax in the UK on UK income.

There is a myth that being non-resident exempts you from tax, it doesn't.

You will need advice from a UK based accountant, you will have to declare the fact that you are non-resident, otherwise you will be taxed on income in Guernsey.

[NotAllThere]

If you work remotely for a UK company the starting position is also that you pay tax where you're working. (Though there may nonetheless be IR35 considerations).

If you work in the UK, you'll be liable to pay tax on those earnings to the UK. But so long as you don't become tax resident in the UK (and you can be tax resident in more than one place), you won't be liable to pay tax on global income to the UK.

Look at the rules of how you become tax resident in the UK.

[panders]

Thanks all, my reading suggests that there are tests to determine tax residency etc and also a 91 day cut off or you can get double taxed?

@ Fred you say "There are hundreds of threads here asking the same question." I did a forum search using the word Guernsey before I posted and found nothing relevant. I am aware that different jurisdictions have different tax treaties so did n't think posts about other jurisdictions would necessarily apply. If you can direct me to some I'd be grateful.

Your comment "you will soon get the hang of it" suggests that you're a bit irritated by my posting this question? Whats a forum for if not to ask questions?

[eek]

Thanks all, my reading suggests that there are tests to determine tax residency etc and also a 91 day cut off or you can get double taxed?

@ Fred you say "There are hundreds of threads here asking the same question." I did a forum search using the word Guernsey before I posted and found nothing relevant. I am aware that different jurisdictions have different tax treaties so did n't think posts about other jurisdictions would necessarily apply. If you can direct me to some I'd be grateful.

Your comment "you will soon get the hang of it" suggests that you're a bit irritated by my posting this question? Whats a forum for if not to ask questions?

The problem is that this question is rather unique as not many people work from Guernsey. We have however had a number of questions about trying to find UK based work while sitting in Europe and it isn't easy.

I suspect you will fall into the too complex / awkward box for agencies so while you may be able to do 100% remote work from Guernsey which is close to what you need for tax reasons you would be better of trying to find direct clients.

[WTFH]

Thanks all, my reading suggests that there are tests to determine tax residency etc and also a 91 day cut off or you can get double taxed?

@ Fred you say "There are hundreds of threads here asking the same question." I did a forum search using the word Guernsey before I posted and found nothing relevant. I am aware that different jurisdictions have different tax treaties so did n't think posts about other jurisdictions would necessarily apply. If you can direct me to some I'd be grateful.

Your comment "you will soon get the hang of it" suggests that you're a bit irritated by my posting this question? Whats a forum for if not to ask questions?

You searched based on a specific island.

Fred already answered you - you pay tax on income where you work.

If you want to get into the complexities of how that would apply to you, specifically, being a resident of Guernsey, with your very specific set of circumstances that we don't currently know, then you'd need to speak to a tax advisor.

I suspect agents will give you a wide berth if you are going to create more problems for them than profit.

[Fred Bloggs]

You searched based on a specific island.

Fred already answered you - you pay tax on income where you work.

If you want to get into the complexities of how that would apply to you, specifically, being a resident of Guernsey, with your very specific set of circumstances that we don't currently know, then you'd need to speak to a tax advisor.

I suspect agents will give you a wide berth if you are going to create more problems for them than profit.

Thank you. More eloquent than I can muster.