Reply to: Pay for contract abroad, kept abroad = No UK tax?

[ASB]

Do a search on robert gaines-cooper and find out why this fact cost him 100 million

I think I posted that link up earlier. I beleive they were "only" asking for 30 million and this was later revised to a "mere" < 1 million.

Having read the judgement I am far from convinced it was wrong - though I believe after losing the appeal at the hight court there was talk of a judicial review. He did have access to propery here most of the time, his propery on Mahe was let to the high commission at one point, his wife and child I think lived in the UK.

In any event what it does show is that the IR guidance is only guidance and that it is not easy to acquire a domicile of choice elsewhere. Of course there is a big difference between domicile and residence - so most people who have left are perfectly safe from HMRC - until they die.

[BlasterBates]

You have to deregister? I never knew that. Even though I've been out of the country for 20 years, have German registration papers, pay tax here but never deregistered in the UK does that mean the taxman might get me when I enter the UK? If so then there are a lot of people who could get caught out.

You don't have to, but if you have any UK income, eg rent, then you should so that you don't have to fight with HMRC to get it back, if the tax is deducted by the agency. What counts is the fact that you aren't resident, the form just makes it automatic.

[iguy2008]

Its Not That Easy.

Hi

Ignore those that tell you to simply deregister using a P85, stay out of the country for a year or so as in reality this is rubbish.

HMRC have already admitted that the guidance in the IR20 should not be taken literally and ONLY applies if you have severed all ties with the country.

Do you have a property in the UK ? then alarm bells should be ringing.
Do you have family in the UK ? then alarm bells should be ringing.

The 90 day rule does not apply if you have not severed all ties with the UK.

HMRC work on the basis of case law which means they can and do expect you to prove that all ties are severed with the UK and can argue it all the way.

Do a search on robert gaines-cooper and find out why this fact cost him 100 million

Anyone considering this should seek financial/lega advice or risk being caught out later.

Cheers.

[ASB]

You have to deregister? I never knew that. Even though I've been out of the country for 20 years, have German registration papers, pay tax here but never deregistered in the UK does that mean the taxman might get me when I enter the UK? If so then there are a lot of people who could get caught out.

Potentially. Question is whether you have acquired a domicile of choice.

[NotAllThere]

The key thing is to deregister pronto.

That would be your proof.

You get a form to fill out. Once you have "deregistered" HMRC will not demand any tax return or expect one.

Not entirely the case. I had one tax return after I'd filled in the P85(? or whatever it was). But then, I did owe them £800.

[darmstadt]

The key thing is to deregister pronto.

That would be your proof.

You get a form to fill out. Once you have "deregistered" HMRC will not demand any tax return or expect one.

You have to deregister? I never knew that. Even though I've been out of the country for 20 years, have German registration papers, pay tax here but never deregistered in the UK does that mean the taxman might get me when I enter the UK? If so then there are a lot of people who could get caught out.

[Gonzo]

I thought about that - filling in a P85 form, but you have to be out for 9 months in a tax year and i wont be out that long - but if you think they do not check then it may be worth a try...i should be out for about 6 months...

FFS

UK residents pay tax on their world-wide income unless they have paid the £30,000, or whatever it is, to register as non-doms.

Just pay the effin tax or be thankful that you have used a pseudonym to register on here.

Unless it is a double-bluff and you have actually registered with someone else's name to get them in the tulip?

[AlanDavis]

The key thing is to deregister pronto.

That would be your proof.

You get a form to fill out. Once you have "deregistered" HMRC will not demand any tax return or expect one.

I thought about that - filling in a P85 form, but you have to be out for 9 months in a tax year and i wont be out that long - but if you think they do not check then it may be worth a try...i should be out for about 6 months...

[BlasterBates]

The key thing is to deregister pronto.

That would be your proof.

You get a form to fill out. Once you have "deregistered" HMRC will not demand any tax return or expect one.

[expat]

How do they know you are away from the UK?

Simple: if you are claiming that you are away from the UK for a whole year, be prepared to substantiate that claim.

[AlanDavis]

That's a hardship

How do they know you are away from the UK?

[HairyArsedBloke]

Do a google search around Tim123's post.

Just be prepared to stay away from the UK for a good year or so.

That's a hardship

[SueEllen]

Funnily enough, it is the middle east where my contract will be! No tax there.

The problem is how would I get the money into the UK?

Also, my residency/domicile status may change if I chose to move out there more permanently in 3 months time...and therefore the money will be kept out there until such time...I just need a plan to bring it back to the uk if matters change....

Do a google search around Tim123's post.

Just be prepared to stay away from the UK for a good year or so.

[tim123]

Unfortunately, HMRC have changed the rules. How unusual.

It was the government that changed the rules to take away the discression.

If you do actually qualify, I don't see any way the the revenue can deny you the non-resident status. OTOH, there are quite a few of people that try to claim it without actually qualifying.

tim

[bobhope]

Unfortunately, HMRC have changed the rules. How unusual.