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

[Bidi]

I am a British citizen. I'm thinking about taking up a job for a US company. I'd like to work remotely from Turkey. Will the UK tax me if I am technically not living in the country?. Also, am I correct to say that the US will not tax me either as I am not a US citizen nor am I living in the US?. Thanks in advance.

[cojak]

The Turkish tax authorities will probably have something to say about this arrangement however.

[NotAllThere]

Will the UK tax me if I am technically not living in the country?

You can live in Turkey but nonetheless be tax resident in the UK (and Turkey). The rules are available on the HMRC website. I suggest you search for them.

[Fred Bloggs]

It's actually pretty clear if you read the RDR3 guidelines from HMRC. There are the statutory residency tests that determine whether you are a tax resident or not in the UK. It is extremely easy to be tax resident in the UK and Turkey at the same time. There are a number of worked examples in RDR3 guidelines and you are likely to be similar to one of them. Also look carefully at what's called split year treatment for the year you leave and return to the UK.

Then look to see if there is a dual tax treaty in place which will determine who gets first dibs on what money.

[BlasterBates]

Strictly, you should be registering your business/employment in the country where you work. However if you're just going to be in Turkey for a few weeks in a hotel no-one will notice. If you don't register your business/employment in Turkey and you are returning to the UK, and satisfy the UK residency requirements then this will be a UK business, simply because you will have no proof of registering and paying tax in Turkey. Just being in Turkey won't be enough, HMRC will want to see proof of tax being paid. However if you leave the UK and spend most of your time in Turkey, you will be resident there and at some point you shouldn't be surprised if the Turkish tax authorities take an interest. If they do then you'll be in hot water unless you can prove you were working in the UK or US.

I would advise deciding on where you spend most of your time and register your business/employment there, but be careful in the other country. If you will be working in both countries you could split the income; there are companies that could advise on this. Bear in mind that remote working is now normal so the tax authorities might decide to look more carefully at anyone spending a lot of time in their country,

[Bidi]

It's actually pretty clear if you read the RDR3 guidelines from HMRC.

Thank you, I'll definitely have a look at the guidelines.

I would advise deciding on where you spend most of your time and register your business/employment there, but be careful in the other country. If you will be working in both countries you could split the income; there are companies that could advise on this. Bear in mind that remote working is now normal so the tax authorities might decide to look more carefully at anyone spending a lot of time in their country,

This is what I was having some difficulty understanding. Assuming I did get a visa to allow me to live and work in Turkey and I did just that. So say I only returned to the UK for a couple of weeks in the year. Would the UK still consider me as a tax resident?.

I would advise deciding on where you spend most of your time and register your business/employment there..

Just to clarify, are you saying I should open my limited company in Turkey if that's where I intend to live?. I did read the following online with regards to a British citizen working for a US organization not living in the UK or US:

"Make sure the US company is paying you as a contractor, not through their payroll system where they take US taxes out. "

So this had me thinking. In the UK to work as a contractor I would need to open up a limited company and have the organization I am working for pay money into that limited company where I would then be taxed through. If I was working for a US organization as a contractor, would it work the same way?. Meaning, would I need to open up a limited company here in the UK and have the US pay into that limited company?. If so, it may make it difficult to not be taxed in the UK. I guess what you said above would answer this question if I've understood correctly.

Bear in mind that remote working is now normal so the tax authorities might decide to look more carefully at anyone spending a lot of time in their country,

Yes I've noticed many European countries are starting/started to introduce digital nomad visas. I'm guessing having one of these visas means your being taxed by that country.

[BlasterBates]

Thank you, I'll definitely have a look at the guidelines.



This is what I was having some difficulty understanding. Assuming I did get a visa to allow me to live and work in Turkey and I did just that. So say I only returned to the UK for a couple of weeks in the year. Would the UK still consider me as a tax resident?.



Just to clarify, are you saying I should open my limited company in Turkey if that's where I intend to live?. I did read the following online with regards to a British citizen working for a US organization not living in the UK or US:

"Make sure the US company is paying you as a contractor, not through their payroll system where they take US taxes out. "

So this had me thinking. In the UK to work as a contractor I would need to open up a limited company and have the organization I am working for pay money into that limited company where I would then be taxed through. If I was working for a US organization as a contractor, would it work the same way?. Meaning, would I need to open up a limited company here in the UK and have the US pay into that limited company?. If so, it may make it difficult to not be taxed in the UK. I guess what you said above would answer this question if I've understood correctly.



Yes I've noticed many European countries are starting/started to introduce digital nomad visas. I'm guessing having one of these visas means your being taxed by that country.

Basically you tax yourself where you work, which sounds like will be in Turkey.

https://www.lawyer-turkey.com/turkey-digital-nomad-visa

You would have to enquire as to how you could be paid, presumably through a Turkish company.

Check the UK residency rules. If you're just returning for two weeks and you don't work in the UK then there are no tax implications.

https://www.gov.uk/government/public...-test-srt-rdr3

I would contact Sue B

https://forums.contractoruk.com/acco...ief-guide.html

[Bidi]

Thanks for the links. Just to confirm, Should I set up a company in Turkey and have the US organization pay my wages in there so that my company will be taxed in Turkey and the US will not tax me since I'm not a tax resident and nor will the UK tax me as I am not living there and my company is not set up there either?. Please correct me if I'm wrong.

Sue I'd really like to hear your thoughts on this. I read your post here:

Working In Europe - A Brief Guide[/SIZE]

and you are really knowledgeable about this. Thanks in advance.

[northernladuk]

Thanks for the links. Just to confirm, Should I set up a company in Turkey and have the US organization pay my wages in there so that my company will be taxed in Turkey and the US will not tax me since I'm not a tax resident and nor will the UK tax me as I am not living there and my company is not set up there either?. Please correct me if I'm wrong.

Sue I'd really like to hear your thoughts on this. I read your post here:

and you are really knowledgeable about this. Thanks in advance.

As I said in your other post. The money the client pays in your company are NOT your wages. Wages are something your company pays you for working for your LTD. You've got to understand that or you'll get nowhere.

[NotAllThere]

Bidi You might not like the tone, but this is very important to understand.