Low Tax Bracket in different countries

[meridian]

You'd also need to take into account the difference between your company earning the contract fees (and paying full tax on net profit in it's country of residence) and you earning a salary. If your company pays you the salary then it would pay the PAYE to HMRC and it would then be up to you to get the refund. As BB says, a bureaucratic nightmare if you're filing multiple returns across jurisdictions.

[BlasterBates]

I was refunded all tax I paid in March 2014 because I didn't make much that tax year, so I'm still wondering what would happen in case of a possible return to the Netherlands, which have their own deductions for entrepreneurs, unfortunately the best of which requires you to have worked 1225 hours in that tax year.

I actually agree with you on this one. But....you would need to have more than two countries on your list, i.e. flitting between two countries would not work, because if you return after 6 months they're going to see you as resident for the whole period unless you can demonstrate full residency elsewhere.

For it to work you would really have to be a nomad, with no ties going from country to country and giving up your flat or house each time. Getting contracts in different countries consistently would be difficult and you would have no friends so really it's not worth doing. If you returned to the UK every month to see your friends or have a flat then you would probably be seen as UK resident, or else where for that matter even if you're out of the country most of the time.

You would also have to fill out numerous tax forms and deal with different tax authorities. That would be a bureaucratic nightmare.

[ujjain]

I was refunded all tax I paid in March 2014 because I didn't make much that tax year, so I'm still wondering what would happen in case of a possible return to the Netherlands, which have their own deductions for entrepreneurs, unfortunately the best of which requires you to have worked 1225 hours in that tax year.

[jamesbrown]

It's a lot harder to become non-resident in the UK after the changes in 2013. As indicated above, you provide very little information, but the short answer is "no". If there's a tax treaty in place, you shouldn't be paying more than the higher of the rates between the two countries, but you won't be paying less either. A brief summary of the new SRT:

The new statutory residence test explained | AccountingWEB

[Martin at NixonWilliams]

If I live 6 months in the UK in the tax year and 6 months in another country, does that mean I would start in the lowest tax bracket twice?

e.g. you make £40k in the UK, pay little tax, first £10.600 tax-free, then another country... same thing.

So if you would to work in 1 January a job making you £3.333, you would not pay any tax, as you would technically have made only £10k that tax year.

Unfortunately not. Your earnings from the UK and overseas would be combined in order to determine the UK tax payable. You should get relief for any tax paid overseas.

This is not something you can get a quick answer on as the rules are very complicated. You should seek professional advice appropriate to your individual circumstances.

I hope this helps.

Martin

[meridian]

If I live 6 months in the UK in the tax year and 6 months in another country, does that mean I would start in the lowest tax bracket twice?

e.g. you make £40k in the UK, pay little tax, first £10.600 tax-free, then another country... same thing.

So if you would to work in 1 January a job making you £3.333, you would not pay any tax, as you would technically have made only £10k that tax year.

No.

You'll need to be more specific about certain things, such as what country you are normally resident in, what country you are tax resident in, what country you are moving from/to, whether there is a double-tax agreement in place between the UK and that country, whether you are Domiciled in the UK or not, whether "6 months" is 183 days or a different number, etc

[ujjain]

If I live 6 months in the UK in the tax year and 6 months in another country, does that mean I would start in the lowest tax bracket twice?

e.g. you make £40k in the UK, pay little tax, first £10.600 tax-free, then another country... same thing.

So if you would to work in 1 January a job making you £3.333, you would not pay any tax, as you would technically have made only £10k that tax year.