Does non-resident tax status exist in UK?

[ASB]

I agree with expat here.

You are missing the difference between tax resident and physically resident.

tim

No I'm not.

The only thing I am saying is that by careful consideration the OP might be able to avoid tax residency in the UK and it might be beneficial.

[expat]

hmm as I thought virtually every country in the EU has a 183 day rule, so basically Portugal is no different.

The reason ASB you haven't paid tax is because you were never there long enough from what I can see.

Yes, like everywhere else Portugal has a 183-day rule for residency: not for tax liability.

In the case of an individual who answers the test of a "permanent resident" of Portugal, tax will be calculated on his income earned in Portugal and overseas.
A foreign resident who is employed in Portugal pays tax only on his income in Portugal.

My italics - many people seem to think that if you're not tax-resident in a country, you don't pay tax in it. That is almost never true if you have income with its source in that country.

[tim123]

No I'm not.

The only thing I am saying is that by careful consideration the OP might be able to avoid tax residency in the UK and it might be beneficial.

Sorry, we were taking about becoming liable to tax in the second country (the example for which was Portugal), where did I say anything about residency status in the home country?

tim

[alreadypacked]

Non-Resident

I am current working in Dublin, but I will not be here long enough to be a resident so my invoice is paid to my country of residence and taxed there.

Are there any agents in London who will deal with me as a non-resident and pay invoices tax free to an overseas company? I may already have a contract through a friend.

[dahowlett]

Confused?

Liability in most EU countries arises on the basis of residency which is a matter of fact and is subject to both accumulation and 'years' involved. The problem is proving it because only non-EU passports are stamped at the port of entry/exit.

For most short term contracts there should be no problem billing via your normal country of residence. Even if there is, then you should be able to use the double taxation agreements to ensure the right amount of tax is paid in the right place.

Remember that witholding tax in one state is not the same as liability. It's just that state's way of ensuring they are 'safe' on collection.

The other problem is that few local inspectors really understand how to handle the issues at stake so you always need good quality advice.

There have been recent rule changes for the UK to prevent the Tues>Friday worker claiming non-residence out of the arrivals/departure rules. Another gotcha.

[bonpartit]

Doubt

Regarding the issues talked in this thread, let's imagine a fictional situation where an European has been contracting for a UK company and being paid in the UK for the last 8 months.
This European person has been using his European company to bill his client and has yet to pay taxes in UK or Europe.
What is the best way to "come clean"? Declare the last 8 months of earnings to the UK authorities and pay same level of tax as an employee (PAYE) which I understand will be 40% of gross earnings? Or should he create a UK company and declare past earnings through this UK company (definitely more tax efficient). Any other tax-efficient solution?

[alreadypacked]

Thanks for the heads up

Liability in most EU countries arises on the basis of residency which is a matter of fact and is subject to both accumulation and 'years' involved. The problem is proving it because only non-EU passports are stamped at the port of entry/exit.

There have been recent rule changes for the UK to prevent the Tues>Friday worker claiming non-residence out of the arrivals/departure rules. Another gotcha.

Lucky for me I spent the last 5 years in Zurich, so I can prove I was outside the EU. Thanks for the heads-up on the Tues>Friday rule change I will look into that. In Ireland if you are here at 00:00 it counts as a day.