Non-resident status, short term UK contract

[[email protected]]

Hi everyone,

I have had UK non-resident status for about 6.5 years now and have been contracting overseas for that time, paying local taxes (by agent) in various countries in SE Asia. I have not filled in a UK tax form since about 2004 (sanctioned by IR).

I may have a UK contract opportunity (too good to ignore) which could be for less than 6 months, followed by re-location back to SE Asia for the duration (unknown, but long term).

I have done some reading here and there, and get the impression that if the UK portion of the contract was for less than 6 months, I am not liable for UK tax (or do I pay tax on the UK part, but not for the overseas part). I don't really want to start a limited company (been there, done that, not going there again if i can avoid it), I also don't want to be paying 40% on everything if I can avoid it.

So, I'm looking for the best way to work so that I pay the absolute minimum in tax (ideally none) and what the arrangement would be with the agent to achieve this. If it's possible to be invisible to the taxman, how can I achieve it ??

Assuming I do have to pay tax, I also need some advice on what can be offset against tax, since I don't live in the UK any more, i.e. no property, no house, no assets, (not even a bank account at present), can I offset house rental and transportation against tax etc.

Many thanks in advance for any help offered.

Mike

[ace00]

I would get payed into a bank account in SE Asia and then you can declare it there. I think that should be OK as you are not resident in the UK. Keep the contract under 183 days, don't see a problem.

[NotAllThere]

If you go through a brolly, you'll be taxed at source. I don't know if you'll be able to claim that tax back.

If you work through an off-shore ltdco, you might find agencies don't want to deal with you. But if they do, then you're liable to pay corp tax on the profits. The trick there would be not to make any profit. That's what I did last time I took a UK contract.

[[email protected]]

I would get payed into a bank account in SE Asia and then you can declare it there. I think that should be OK as you are not resident in the UK. Keep the contract under 183 days, don't see a problem.

Sounds easy enough but I guess it depends on the agent, they may insist either PAYE or Limited Company. Is there a possibility to do it this way (i.e. neither PAYE or Limited) ?? I'm wondering about how the agent would declare the earnings and contractors without incurring tax and NI liabilities.

Cheers

[ace00]

Sounds easy enough but I guess it depends on the agent, they may insist either PAYE or Limited Company. Is there a possibility to do it this way (i.e. neither PAYE or Limited) ?? I'm wondering about how the agent would declare the earnings and contractors without incurring tax and NI liabilities.

Cheers

Good point. Thought it looked too easy!
What about setting up a UK Ltd., closing at end of contract and paying cap gains on the remaining balance?