Offshore Contract, Residency & Domicility

[prozak]

Afternoon all.

I've got an opportunity to contract in the Caribbean mon.

I am non-dom in the UK (though never needed to test this fact with HMRC) but currently resident.

What is the point at which I am not resident in the UK? Is it a defined timeframe?

What offshore options are there in this circumstance?

Thanks.

[BlasterBates]

If you intend to leave the UK for more than a tax year, you are non-resident the day after you leave the UK. Obviously you pay tax in the current tax year.

There's a form to fill out, P85:

HM Revenue & Customs: Income Tax when leaving the UK

[Wanderer]

I've got an opportunity to contract in the Caribbean mon.
I am non-dom in the UK (though never needed to test this fact with HMRC) but currently resident.

Non domiciled is a lot more complex that it used to be, there is now a £30,000 annual charge to be a non-dom so it probably doesn't suit most of us. You would certainly need specialist advice on this and a good advisor to back you up if you were ever investigated.

[geoff from contracta IOM]

Non domiciled is a lot more complex that it used to be, there is now a £30,000 annual charge to be a non-dom so it probably doesn't suit most of us. You would certainly need specialist advice on this and a good advisor to back you up if you were ever investigated.

The charge only applies for those who are non- dom & res , not for non-dom & non res , you can effectively fill out a form, settle any outstanding tax and go on your way. Do remember about applying to be a non-res landlord if you own and intend to rent out your property in the UK.

[Greg@CapitalCity]

Assuming you already have your own ltd company

If you plan on moving away from the UK for the foreseeable future, just be careful with your timing if you can. Although you may cease to be a tax resident on the day you leave, some UK earnings may remain taxable in the UK after you have left.
(1) Any dividends you receive from the ltd company up to the next 05 Apr after you leave will be taxable in the UK;
(2) If you are thinking of closing your company and taking a capital gain using ESC C16 the gain may also be taxable in the UK if it is paid out after you have left. This will be the case if you have been in the UK for at least 4 of the last 7 years;

If you can, clean up the your ltd company finances before you leave - you might need some personal tax planning advice to ensure you avoid Caribbean tax on your UK earnings if you are taking final dividends etc after your tax residency in the Caribbean has commenced.

[prozak]

Thanks all.

[Zoiderman]

Afternoon all.

I've got an opportunity to contract in the Caribbean mon.

I am non-dom in the UK (though never needed to test this fact with HMRC) but currently resident.

What is the point at which I am not resident in the UK? Is it a defined timeframe?

What offshore options are there in this circumstance?

Thanks.

Cayman Islands no less

[prozak]

Cayman Islands no less

Does anyone use the cayman islands anymore?

Very 1980's of you!

[Zoiderman]

Does anyone use the cayman islands anymore?

Very 1980's of you!

£140k a year tax free does

[prozak]

I don't believe I will be non-resident in my situation.

The contract will only be 6months.

I fully intend on returning to the UK.