BN66 - Court of Appeal and beyond

[DonkeyRhubarb]

The Supreme Court panel can have 5, 7 or 9 judges sitting depending on the importance/significance of the case.

5 is for the least; 9 is for the most

The Gaines-Cooper case had 5.

I'll state this for the record now and you can quote me later...

If we only get 5 judges, I will be concerned.

[screwthis]

I don't know the complete details of the case, but I've been reading residency rules recently due to the possibility of a contract abroad.

I say HMRC got it right.

Although the rules talk about how many days you need to be in the UK they also talk about ties to the UK and the intentions of the tax payer.

So for my example, I don't think my claim for non-residency would work because I have every intention to return to the UK for my sons school. I will maintain a house in the UK in my absence. So even if I was abroad for 200 days of the tax year I would think I would lose any residency argument.

Isn't the rule that you need to be out of the country for the whole tax year?

[SantaClaus]

Time for Occupy HMRC

Yep, if we lose, I am having tons of kids, claiming every benefit conceivable and I will spend my days on the steps of St Pauls.

Then lets see who pays a bigger bill in the end, my family or the government

[normalbloke]

Yep, if we lose, I am having tons of kids, claiming every benefit conceivable and I will spend my days on the steps of St Pauls.

Then lets see who pays a bigger bill in the end, my family or the government

HMRC wont give a sh*t. People who work there are only concerned about their own stinking little world.

[DonkeyRhubarb]

HMRC wont give a sh*t. People who work there are only concerned about their own stinking little world.

[BolshieBastard]

Isn't the rule that you need to be out of the country for the whole tax year?

Nope. You mustnt be in the UK for >=90 (or 91?) days out of 365, I think.

[screwthis]

Nope. You mustnt be in the UK for >=90 (or 91?) days out of 365, I think.

That used to be the case. I think it has changed.


When will I be treated as a UK resident?: Expert UK tax advice for Professionals, Ltd company and Expatriates by Actiontax

If you leave the UK and do not step foot in the UK for an entire tax year then you will be treated as not-UK resident for that tax year.

[centurian]

Nope. You mustnt be in the UK for >=90 (or 91?) days out of 365, I think.

Not quite - and this is the problem. The guideline described what would bring you into the UK residency status (being in UK for more than 90 days).

The problem is that many made the (incorrect) assumption that the guideline could be simply inverted - that spending less than 90 days automatically made you non resident.

From a legal point of view, HMRC probably have a point here. The fact that many tax advisors collectively chose to make the wrong interpretation is their problem, not HMRCs (although they could have certainly made it clearer).

I suspect that there are many other areas of established tax advise that are just waiting to be formally challenged by HMRC in the courts. DR is right though - this doesn't really apply to BN66.

[BrilloPad]

The Supreme Court panel can have 5, 7 or 9 judges sitting depending on the importance/significance of the case.

5 is for the least; 9 is for the most

The Gaines-Cooper case had 5.

I'll state this for the record now and you can quote me later...

If we only get 5 judges, I will be concerned.

We will only get 5. Fewer to bribe.

[Ninja]

Working 'Tax Free' abroad

That used to be the case. I think it has changed.


When will I be treated as a UK resident?: Expert UK tax advice for Professionals, Ltd company and Expatriates by Actiontax

If you leave the UK and do not step foot in the UK for an entire tax year then you will be treated as not-UK resident for that tax year.

A year or so ago I was looking at working in Jeddah, and it was advertised as being 'tax free'. So I checked with HMRC.

Their explanation is best best illustraited in these 2 examples:-
1. Out the country from May 2011 --> August 2012 = 15 months, however it spans 2 partial tax years, therefore NOT tax free
2. Out the country from March 2011 --> June 2012 = 15 months. This also spans 2 tax years, one of which is not partial therefore all 15 months are tax free

Note: When I say 'out the country', it does allow for occasional trips home. I think the limit is 90 days (in any one tax year, or partial pro-rata) in total.