Tax implications- Working remotely for a US company in Turkey (British citizen)

[BlasterBates]

Just one point about residency raised by NAT and Fred Bloggs. There is a double taxation treaty which outlines how residency is determined if you actually satisfy residency requirements in both countries. The double taxation treaty precludes you being resident in both countries, otherwise you'd pay tax twice on some sources of income.

https://assets.publishing.service.go...-_in_force.pdf

Essentially the key criteria is where are your main personal and economic interests. However it makes things a lot easier if you make sure you don't satisfy residency requirements in the UK.

One misunderstanding is that if you are non-resident you aren't subject to tax. If you are deemed to be resident in Turkey but you spend a few weeks working in the UK then that income would be taxed in the UK even though you would be deemed to be resident in Turkey. The UK income would also have to be declared in Turkey but they would take into account tax paid in the UK.

[Fred Bloggs]

Just one point about residency raised by NAT and Fred Bloggs. There is a double taxation treaty which outlines how residency is determined if you actually satisfy residency requirements in both countries. The double taxation treaty precludes you being resident in both countries, otherwise you'd pay tax twice on some sources of income.

https://assets.publishing.service.go...-_in_force.pdf

Essentially the key criteria is where are your main personal and economic interests. However it makes things a lot easier if you make sure you don't satisfy residency requirements in the UK.

One misunderstanding is that if you are non-resident you aren't subject to tax. If you are deemed to be resident in Turkey but you spend a few weeks working in the UK then that income would be taxed in the UK even though you would be deemed to be resident in Turkey. The UK income would also have to be declared in Turkey but they would take into account tax paid in the UK.

Exactly. I have said more than once here that it's very easy to be tax resident in more than one jurisdiction at the same time. All the time I was working overseas and passing the first statutory residency test I was still taxed on UK derived income even though I wasn't here. I wrapped up UK Ltd Co before leaving.

It actually takes quite a bit of planning ahead to optimise personal situation properly and qualify for split year treatment etc.... Tax status isn't confirmed by the UK until you have been fully outside the UK for an entire tax year following the tax year you left. Anyone thinking they can come here, ask a few selected questions and be home and dry is deluded.

I might be being mildly unfair on the OP but I sense a cunning plan developing where OP thinks he/she won't have to pay any corporate or personal taxes if he/she is clever enough. In that case, I say go fill your boots, what can possibly go wrong with that plan.

I hear the food in Turkish jails is excellent.