Reply to: Non-resident tax status and coming back to the UK

[BlasterBates]

One of the automatic overseas residence tests is: If you work full time overseas and you spend fewer than 91 days in the UK and you work in the UK for fewer than 31 days


Would a work done remotely for a UK company qualify under this rule? I plan to work remotely most of the time, and work in the UK fewer than 31 days, and be here fewer than 91 days.

Would that make me pass this test?

I would say you should be paying tax in the UK and in the country you work remotely. Sounds increasingly like you need two companies. Your UK Ltd and a foreign company. I had a split contract once where I had both a UK and a Luxembourg contract for one project. I only spent a few days in the UK but that was enough for this to be legal.

Contact Sue at IPAYE, it needn't be as complicated as it sounds but you should probably be doing this. As I mentioned before you could bill your UK Ltd from your foreign company for the work you do remotely.

https://www.contractoruk.com/forums/...ief-guide.html

[Fred Bloggs]

Depends

For example, to consider something not mentioned so far (as I perused the other comments in a half-arsed way ) then, yes, you may be fully taxable in the UK on any dividends received overseas from a UK company or capital gains received on UK assets that accrued in the UK within the tax year of your return, assuming you return within five years (to simplify the actual anti-avoidance rules a little).

Bottom line, it's complicated, it depends on the facts, it depends on your situation, any you cannot keep asking variants of the same question here and struggling in the way you are struggling. You need professional help and you will need to pay for it.

Spot on, yes.

[jamesbrown]

I will need to know what happens from a tax point of view if I decide to come back to the UK after some time?

Depends

For example, to consider something not mentioned so far (as I perused the other comments in a half-arsed way ) then, yes, you may be fully taxable in the UK on any dividends received overseas from a UK company or capital gains received on UK assets that accrued in the UK within the tax year of your return, assuming you return within five years (to simplify the actual anti-avoidance rules a little).

Bottom line, it's complicated, it depends on the facts, it depends on your situation, any you cannot keep asking variants of the same question here and struggling in the way you are struggling. You need professional help and you will need to pay for it.

[skysies]

If you don't stay away for a full year, then your earnings will probably be taxed but they will take into account tax paid in the country you were working remotely, so you won't pay the full rate.

One of the automatic overseas residence tests is: If you work full time overseas and you spend fewer than 91 days in the UK and you work in the UK for fewer than 31 days


Would a work done remotely for a UK company qualify under this rule? I plan to work remotely most of the time, and work in the UK fewer than 31 days, and be here fewer than 91 days.

Would that make me pass this test?

[skysies]

And here is the crux of the matter, if all these questions were about some wheeze to avoid paying tax anywhere, he’s in for a shock.

But he won’t admit that, instead spin out some story with vague answers, avoiding the truth.

No there is no "spin" here. I plan to work remotely from an EU country. As simple as that. I don't need to give you all details, do I?

[Fred Bloggs]

Why would anyone come back to UK?


Sent from my iPhone using Contractor UK Forum

Good question. But I am..............

[GhostofTarbera]

Why would anyone come back to UK?


Sent from my iPhone using Contractor UK Forum

[WTFH]

... they will take into account tax paid in the country you were working remotely...

And here is the crux of the matter, if all these questions were about some wheeze to avoid paying tax anywhere, he’s in for a shock.

But he won’t admit that, instead spin out some story with vague answers, avoiding the truth.

[BlasterBates]

If you don't stay away for a full year, then your earnings will probably be taxed but they will take into account tax paid in the country you were working remotely, so you won't pay the full rate.

[NotAllThere]

Hi, I'm thinking of starting to work remotely from another EU country. So the client is in the UK, but I will be based outside of the UK.

I will need to know what happens from a tax point of view if I decide to come back to the UK after some time? I know there could be the issue of a split tax year and that I would get the NT tax code after one year residing outside the UK.

When I come back, could HMRC try to tax some of my earnings from working remotely?

I'm surprised you are still confused by this.

1. full tax years outside of the UK will not attract UK tax. At all.
2. if you leave midway during a tax year, with the intention of being away for the next tax year, you'll get the split year concession for the tax year you leave.
3. if you've been away for the previous tax year and return, you'll get the split year concession for the tax year you return.
4. if you leave midway during a tax year, with the intention of being away the next tax year, but return before it is over, you will be liable for tax on earnings abroad for the entire tax year you left and entire tax year you return. Tax paid abroad will be credited to you, if there's a dual taxation treaty with the country.
5. You may return temporarily but you have to be very careful, or if you're investigated, HMRC could decide you were resident.

All clear now?

Or will you start another thread asking essentially the same questions? If so, I suggest you may need to rethink your plans...

[WTFH]

No, still in the process. This is all unchartered waters.

I'd probably worry about being able to do that before worrying about the what if scenario that one day you decide to come back. Not just tax, but I suspect you'd also need to consider NI contributions

[skysies]

Have you found a UK umbrella company that is happy to do that after 31/12/20?

No, still in the process. This is all unchartered waters.

[WTFH]

Yes, I posted a related question. Regarding your first question, I plan to work through an umbrella company from the UK.

Have you found a UK umbrella company that is happy to do that after 31/12/20?

[skysies]

When you are outside the UK, will you be working through your own Ltd, through an umbrella, or how?

Do you know which country you are thinking of working from?

You've asked several questions about this recently, but not really given us the full picture of your plans.

Yes, I posted a related question. Regarding your first question, I plan to work through an umbrella company from the UK.

[WTFH]

When you are outside the UK, will you be working through your own Ltd, through an umbrella, or how?

Do you know which country you are thinking of working from?

You've asked several questions about this recently, but not really given us the full picture of your plans.