Fixed Term Contract

**northernladuk** · 31 January 2018, 12:12

An FTC is effectively an employment contract.

https://www.gov.uk/fixed-term-contracts

I think you need to look at how much you've got in the company and think about the new rules around capital distribution and restarting in the same trade within two years.

http://www.friendandgrant.co.uk/tax-...imited-company

**BlasterBates** · 31 January 2018, 12:30

Just make sure you spend no more than 91 days in the UK to ensure you're definitely not UK tax resident.

https://www.gov.uk/tax-foreign-income/residence

you work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working

If you have a few weeks on holiday at home and come back every weekend you may end up over that threshold.

Make sure you have proof you maybe asked for it, and if you don't provide it they'll make up their own minds, normally plane tickets should suffice.

**Wilmslow** · 31 January 2018, 12:52

Originally posted by BlasterBates View Post

Just make sure you spend no more than 91 days in the UK to ensure you're definitely not UK tax resident.

Interesting - I wonder how many contractors work away and commute back at weekends, and implications thereof. It may be best for me to spend some weekends / holidays abroad this year - Staying on the island at weekends is a real challenge and test of the metal at this time of year!! I am a IOM Tax Resident - did not consider I may be restricted in what I do at weekends.....

**Sausage Surprise** · 31 January 2018, 12:55

Originally posted by Wilmslow View Post

Interesting - I wonder how many contractors work away and commute back at weekends, and implications thereof. It may be best for me to spend some weekends / holidays abroad this year - Staying on the island at weekends is a real challenge and test of the metal at this time of year!! I am a IOM Tax Resident - did not consider I may be restricted in what I do at weekends.....

Tin head?

**BlasterBates** · 31 January 2018, 14:27

Originally posted by Wilmslow View Post

Interesting - I wonder how many contractors work away and commute back at weekends, and implications thereof. It may be best for me to spend some weekends / holidays abroad this year - Staying on the island at weekends is a real challenge and test of the metal at this time of year!! I am a IOM Tax Resident - did not consider I may be restricted in what I do at weekends.....

The problem is in how the government defines where your home is. If you have a partner in the UK you need to check the rules in more depth, just in case. It is worth an hour or two with an accountant.

I was an international commuter and although I spent most of my time in Switzerland in Germany I was still tax resident because I rented a flat of a certain size and it was my main residence. The German tax authority didn't demand any extra tax through because employment income was only taxed once.

You will still pay IOM tax but you also need to ensure you're not eligible to pay additional tax in the UK.

**Wilmslow** · 31 January 2018, 14:45

Originally posted by BlasterBates View Post

You will still pay IOM tax but you also need to ensure you're not eligible to pay additional tax in the UK.

This is my question. I have no sprogs or partner in the UK, just looking to return back some weekends in an effort to keep relatively sane. I could aim to spend many of the weekends as long weekends in my mothers apartment in the south of France if spending more than 90 days in the UK is a real issue - This I am not sure on, as it can be taken as 90 nights, 90 full days, and also continuous 90 days so rather confusing. I am only probably going to be in IOM for a year, two max so certainly outside the 90 day average over 4 years. I am taxed at source from my employer as a IOM tax resident, so no faffing with Ltd Co's etc. SO I have two issues I guess - Firstly my tax position with regards to if there will be any other taxes to pay back in UK and anything I need to be mindful of with regards to freedom to travel to UK at weekends, and, secondly, if to keep my Ltd Co spinning or to close it down - I have asked my accountant for figures to help steer this latter part though and chatting with him tomorrow.

**BlasterBates** · 31 January 2018, 15:12

Originally posted by Wilmslow View Post

This is my question. I have no sprogs or partner in the UK, just looking to return back some weekends in an effort to keep relatively sane. I could aim to spend many of the weekends as long weekends in my mothers apartment in the south of France if spending more than 90 days in the UK is a real issue - This I am not sure on, as it can be taken as 90 nights, 90 full days, and also continuous 90 days so rather confusing. I am only probably going to be in IOM for a year, two max so certainly outside the 90 day average over 4 years. I am taxed at source from my employer as a IOM tax resident, so no faffing with Ltd Co's etc. SO I have two issues I guess - Firstly my tax position with regards to if there will be any other taxes to pay back in UK and anything I need to be mindful of with regards to freedom to travel to UK at weekends, and, secondly, if to keep my Ltd Co spinning or to close it down - I have asked my accountant for figures to help steer this latter part though and chatting with him tomorrow.

If you don't have a home in IOM it is even more complicated. You need to read the statutory residency thoroughly

https://www.gov.uk/government/upload...nal_078500.pdf

It does appear that even 30 days in the UK can potentially make you tax resident if you have a home. The 90 days seems to refer to whether you have a flat/house for that long which means if you do then it can be considered home and then if you are there for 30 days then you are tax resident provided you don't have an overseas home.

It looks to me like you have to really move to the IOM and just make occasional visits to the UK or give up your flat/house eg rent it out.

**oilboil** · 31 January 2018, 15:22

It's more fun than that too.

For instance get a flight back to the UK that lands at 11PM on Friday and one back to the IOM that leaves the UK first thing Monday morning to be in the office for 9AM

You feel like you've been at home for 2 days - the taxman though sees it as 4 days as you've been in the UK for a part of 4 days

If you don't have a home on the island (rented would do) but have one in the UK (that is available to you) you almost never will qualify as not UK resident - equally if they pay into your UK bank account the same is true

If you want to benefit from being resident in the IOM you need to be resident.

You will also need to be careful about connecting flights to other parts of the world (your plan to spend some weekends abroad) as if you go via (for instance) LHR to get to Spain for the weekend and again on the way home they can view that as a two days in the UK - you should take some specialist advice from an immigration / tax residency lawyer as getting this wrong will be costly

**Wilmslow** · 31 January 2018, 15:44

Originally posted by BlasterBates View Post

If you don't have a home in IOM it is even more complicated. You need to read the statutory residency thoroughly

https://www.gov.uk/government/upload...nal_078500.pdf

Interesting and confusing link. The first examples are about working days overseas which makes me a definite resident of IOM. However, the later examples are people with no mention of whether they work which puts me as a UK tax resident.

I have an IOM address as renting a houseshare as opposed to hotels, so, I have a few bones to pick out. Connecting flights is a real ball-ache as my flights to France connect through Liverpool or Manchester. If just a weekend is 4 nights that is insane - Almost tempted to cut losses and sack this malarky off to be frank!

Fixed Term Contract