Reply to: Residence status

[Stan.goodvibes]

If you want to avoid falling into the UK tax system do not come here to work unless it is on a short term business trip under 6 months.

185 days per two years, to be precise. If you are prepared to move and can get another passport, set yourself up as tax domicile in another country (one that doesn't charge you tax on income earnt outside the country) then travel the world contracting, but moving every 6 months.

The only tricky bit is getting the pimps to pay to a non-UK company...

One thing I haven't explored yet is what happens if you stay for longer than 6 months (in the UK for 1 year say). Yeah you then have to start paying UK tax, but tax should will be a lot less because you are only working for 6 months (UK taxable), therefore earning 'less' in the tax year.

thoughts Anyone?

[meridian]

Watch UK Border Patrol on TV.

They stop people on entry and tell them the exact date and times they have entered and left the country. sometimes going back 10 years.

They're inevitably all non-European though, so they get a stamp in their passport.

I travel in and out of the UK every single week and show nothing more than my boarding card at UK customs, and when I do need to show my (EU) passport than it's nothing more than a flash at them, nothing is swiped.

[Skillo]

If you want to avoid falling into the UK tax system do not come here to work unless it is on a short term business trip under 6 months.

Try setting up an SA registered company in Spain (for working outside of Spain) http://www.strongabogados.com/about.php

Get yourself a Hong Kong bank account and hope you do not get picked by Hector from the UK - in any case keep moving on...............

Unless you are going to be earning in excess of 100K sterling just take your lumps from Hector.

[kellycell]

Where revenue is concerned, what do you think

I doubt it they will bother to be honest..

[Diver]

Will the Inland Revenue really bother checking that?

Where revenue is concerned, what do you think

[kellycell]

Watch UK Border Patrol on TV.

They stop people on entry and tell them the exact date and times they have entered and left the country. sometimes going back 10 years.

Will the Inland Revenue really bother checking that?

[Diver]

Watch UK Border Patrol on TV.

They stop people on entry and tell them the exact date and times they have entered and left the country. sometimes going back 10 years.

[kellycell]

Your details are logged when you enter the country, and when you re-enter the country - do the math.

You need more than 90 days out in one year, but given fat cats take 3 months holiday a year this does not wash.......need to show no permanent residence in UK - so pay your 40% and enjoy the best of British education health, security, politics and bureacracy........saludo!

So it is more tax efficient to show that I am out of the UK a lot?

[Skillo]

Your details are logged when you enter the country, and when you re-enter the country - do the math.

You need more than 90 days out in one year, but given fat cats take 3 months holiday a year this does not wash.......need to show no permanent residence in UK - so pay your 40% and enjoy the best of British education health, security, politics and bureacracy........saludo!

[expat]

Kellycell,

You ask 'Will that put me in a higher tax rate?' the answer is yes depending on your residency status. Your accountant seems to be seeing if you meet the requirements for being not ordinarily resident in the UK for that tax year.

Try reading this pdf from Hector the taxman

http://www.hmrc.gov.uk/pdfs/ir20.pdf

which tries to explain the details.

In terms of days in the country, is your passport swiped at each entry and exit ?, I'm a UK citizen and my passport is inserted into the machine each time. Whether this is actively recorded and shared with HMRC I don't know but it's enough to think they could be aware of when you entered/left the country.

At least at Heathrow these days, the passport is not swiped on exit: the only routine passport check is by airline staff on boarding.

[NotAllThere]

If a criminal activity such as tax evasion is involved, the police will be able to get access to those records.

[Unicorn]

Residence Status

Kellycell,

You ask 'Will that put me in a higher tax rate?' the answer is yes depending on your residency status. Your accountant seems to be seeing if you meet the requirements for being not ordinarily resident in the UK for that tax year.

Try reading this pdf from Hector the taxman

http://www.hmrc.gov.uk/pdfs/ir20.pdf

which tries to explain the details.

In terms of days in the country, is your passport swiped at each entry and exit ?, I'm a UK citizen and my passport is inserted into the machine each time. Whether this is actively recorded and shared with HMRC I don't know but it's enough to think they could be aware of when you entered/left the country.

[kellycell]

I am from another EU country, so they will not be able to see when I was in and out of the UK anyway...
So not sure how they will use the information that my accountant asks..

[TykeMerc]

Passport won't necessarily help, getting entry and exit stamps is almost a thing of the past and certainly is in the EU.

[pmeswani]

Good morning,

My accountant is preparing my tax return for 07/08. He is asking me of the number of days spent outside the UK, since I got back in the country, and whether I intend to stay in the UK for 3 years from the date of my return.

My question is, how will they be able to check how many number of days I spent outside the UK?
And, secondly, I don't think I will be staying in the UK for 2 more years (I have already been here for 1 year from the date of my return). Will that put me in a higher tax rate? Or shall I just say that I intend to stat in the UK for 2 more years?

Many thanks.

I'm not sure where the difficulty is. All the HMRC needs to do is to ask you to show them your passport as proof. If you refuse, you could be liable for something. Tell them the truth... remember it would hurt a lot less.