Re: MY questions
McBainCo,
congratulations on having read the question. Thanks.
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Reply to: coming to UK with E101
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Previously on "coming to UK with E101"
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Guest replied
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Guest repliedRe:UK IT
It is not necessary to be Tax resident in a country to be liable to tax in that country.
Almost all developed countries have the rule that income earned whlst physically present (working) in the country is liable to local tax regardless of the person's tax residence.
You work in the country for one month you (are liable to) pay UK tax on one month's local earnings.
The same argument runs true if you are self-employed in the UK and non-resident
Work in the country for 6 months (183 days) and you are liable to pay UK tax on 6 months *world-wide* earnings.
to see what income is taxed if you become resident.
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Guest repliedRe: MY questions
My understanding was that you deduced a notional local NIC equivalent before subjecting the local gross income for local taxation.
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Guest repliedMY questions
Tim123,
Sorry expat, I don't have time to answer the rest of your questions
I know perfectly well that tax is due on local income from day 1, and worldwide income from a later date when residency qualification happens. In fact I said that in my first sentence.
My question is on how much? Surely not on the gross income: a resident does not pay income tax on gross income, but on income net of Employers NIC. What is the equivalent sum for a non-resident?
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Guest repliedRe: You wouldn't necessarily be due any UK income tax!
How many times do I have to explain this? :-(.
It is not necessary to be Tax resident in a country to be liable to tax in that country.
Almost all developed countries have the rule that income earned whlst physically present (working) in the country is liable to local tax regardless of the person's tax residence.
You work in the country for one month you (are liable to) pay UK tax on one month's local earnings.
Work in the country for 6 months (183 days) and you are liable to pay UK tax on 6 months *world-wide* earnings.
Of course if you're only resident for one month it is very easy to skip off without paying (as no doubt some do) but it isn't legally correct.
Sorry expat, I don't have time to answer the rest of your questions. Perhaps tomorrow?
tim
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Guest repliedRe:E101
You wouldn't necessarily be due any UK income tax. You could be non-resident for UK tax for example.
If you go through a company then any income would be subject to corporation tax not IT.
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Guest started a topic coming to UK with E101coming to UK with E101
If I (who live in the EU but outside the UK) come and do a contract in the UK, then I will be liable for UK income tax on the income from that contract, but not NIC (if I have an E101 from my country of residence).
Question: how do we work out the sum on which the UK Income Tax is due? It shouldn't be the whole amount because that would take no account of NI or equivalent payments. Would it be the taxable income of a UK resident in the same contrat? Or the equivalent taxable income in my country of residence?Tags: None
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