Reporting Tax Abroad

[daisenthal]

I am a consultant for a UK IT company. I am not a resident of the UK and live and pay my taxes abroad.
I invoice the UK company and they pay me without taking off any tax or Social Security payments.
My question is, does the UK company need auditable documentation from me that I pay my taxes abroad and how much, or is it sufficient to show them that I am not UK taxable?
If I do need to provide documentation, what exactly is needed?

[Bluebird]

I am a consultant for a UK IT company. I am not a resident of the UK and live and pay my taxes abroad.
I invoice the UK company and they pay me without taking off any tax or Social Security payments.
My question is, does the UK company need auditable documentation from me that I pay my taxes abroad and how much, or is it sufficient to show them that I am not UK taxable?
If I do need to provide documentation, what exactly is needed?

Where so you work ?
How much of your time are you in the UK ?

These things will determine your UK tax position.

[NotAllThere]

Are you an employee, or do you work as self-employed for the UK IT company? Or do you work through the equivalent of a ltd co in your country of residence?

[daisenthal]

Where so you work ?
How much of your time are you in the UK ?

These things will determine your UK tax position.

My actual work is in the Netherlands and I do not spend any time in the UK.

[daisenthal]

Are you an employee, or do you work as self-employed for the UK IT company? Or do you work through the equivalent of a ltd co in your country of residence?

I work as self-emplyed for the UK company

[tim123]

I am a consultant for a UK IT company. I am not a resident of the UK and live and pay my taxes abroad.
I invoice the UK company and they pay me without taking off any tax or Social Security payments.
My question is, does the UK company need auditable documentation from me that I pay my taxes abroad and how much, or is it sufficient to show them that I am not UK taxable?
If I do need to provide documentation, what exactly is needed?

This depends entirely upon the rules of the country that you are resident in.

UK rules are completely non applicable here.

The foreign country *may* require the UK country to withhold their PAYE equivilent before paying you, if they aren't doing this (and they ought), it is them who are in trouble, not you.

tim

[dodge1664]

UK rules are completely non applicable here.

I'm not entirely sure about that. OK this guy seems to be non-UK tax resident, but in this case you still have to pay UK taxes on income arising in the UK. Perhaps money from the UK company counts as UK source income? I'd ask a UK accountant.

I would have thought it'd be much simpler to register as a freelancer in Holland, and keep everything local. I've read that there are generous tax breaks for foreigners working there for a short time.

[tim123]

UK rules are completely non applicable here.

I'm not entirely sure about that. OK this guy seems to be non-UK tax resident, but in this case you still have to pay UK taxes on income arising in the UK. Perhaps money from the UK company counts as UK source income?

His earned income (i.e salary) will be foreign income even if it started life in the UK. Whether the UK company have a liability to make foreign PAYE deductions from this salary is entirely down to the laws of the other country.

His unearned income (e.g dividend payments) could be UK sourced income. But this type of payment has tax deducted at source. So the OP's question which I interpreted as: "can I prove that I am paying local taxes to avoid my company having to deduct tax at source" is moot because AIUI there is no mechanism to avoid UK tax being deducted at source from dividend distributions.

HTH

tim

[meridian]

Concurring with Tim.

From the sounds of it the OP is a Dutch freelancer, being paid from by a UK client for work conducted entirely in the Netherlands.

From http://www.hmrc.gov.uk/pdfs/ir20.htm para 5.2, "If you are not resident in the UK .....We will not tax you on earnings from an employment which is carried on wholly abroad"

[Burrow01]

I am a consultant for a UK IT company. I am not a resident of the UK and live and pay my taxes abroad.
I invoice the UK company and they pay me without taking off any tax or Social Security payments.
My question is, does the UK company need auditable documentation from me that I pay my taxes abroad and how much, or is it sufficient to show them that I am not UK taxable?
If I do need to provide documentation, what exactly is needed?

When I worked in NL, I advised the UK tax office, and they sent me a letter advising me that I did not have to pay UK tax's ( should have framed it ) Have you got something similar?
I don't think it makes any difference though, if you are non resident for tax, you don't have to pay UK Taxes, thats the whole point of being non resident

Pete