Fixed Term Contract

[Wilmslow]

There is always the Flybe flight to Geneva........

There are worse places to go to!

It is very conflicting - This is on the iom government website which flips it around - with the double taxation I am interpreting this as a IOM tax resident status....

How long am I allowed on the Island before I become resident?
This depends on the information you give on form R25. As a general rule if you are visiting the Island temporarily you will become resident for income tax purposes if you stay for more than 6 months in any tax year. If you visit and decide to stay permanently you will be asked to provide full details of the date you first arrived and when you made the decision to stay. If you intend to move here permanently you will be classed as resident from the first day of your arrival. If you live elsewhere and make, or intend to make, regular visits which in total exceed 90 days per tax year you may also be classed as resident here for tax purposes. It is recommended you read the fuller details available in PN 144/07 or contact the Income Tax Division to discuss this as soon as possible.

[clearedforlanding]

Interesting and confusing link. The first examples are about working days overseas which makes me a definite resident of IOM. However, the later examples are people with no mention of whether they work which puts me as a UK tax resident.

I have an IOM address as renting a houseshare as opposed to hotels, so, I have a few bones to pick out. Connecting flights is a real ball-ache as my flights to France connect through Liverpool or Manchester. If just a weekend is 4 nights that is insane - Almost tempted to cut losses and sack this malarky off to be frank!

There is always the Flybe flight to Geneva........

[Lance]

it might be worthwhile for the OP to look at some non-IT forums. Perhaps merchant shipping as they spend a lot of time outside the UK. It won't provide all the answers but may have some better context than here.

[Wilmslow]

If you don't have a home in IOM it is even more complicated. You need to read the statutory residency thoroughly

https://www.gov.uk/government/upload...nal_078500.pdf

Interesting and confusing link. The first examples are about working days overseas which makes me a definite resident of IOM. However, the later examples are people with no mention of whether they work which puts me as a UK tax resident.

I have an IOM address as renting a houseshare as opposed to hotels, so, I have a few bones to pick out. Connecting flights is a real ball-ache as my flights to France connect through Liverpool or Manchester. If just a weekend is 4 nights that is insane - Almost tempted to cut losses and sack this malarky off to be frank!

[oilboil]

It's more fun than that too.

For instance get a flight back to the UK that lands at 11PM on Friday and one back to the IOM that leaves the UK first thing Monday morning to be in the office for 9AM

You feel like you've been at home for 2 days - the taxman though sees it as 4 days as you've been in the UK for a part of 4 days

If you don't have a home on the island (rented would do) but have one in the UK (that is available to you) you almost never will qualify as not UK resident - equally if they pay into your UK bank account the same is true

If you want to benefit from being resident in the IOM you need to be resident.

You will also need to be careful about connecting flights to other parts of the world (your plan to spend some weekends abroad) as if you go via (for instance) LHR to get to Spain for the weekend and again on the way home they can view that as a two days in the UK - you should take some specialist advice from an immigration / tax residency lawyer as getting this wrong will be costly

[BlasterBates]

This is my question. I have no sprogs or partner in the UK, just looking to return back some weekends in an effort to keep relatively sane. I could aim to spend many of the weekends as long weekends in my mothers apartment in the south of France if spending more than 90 days in the UK is a real issue - This I am not sure on, as it can be taken as 90 nights, 90 full days, and also continuous 90 days so rather confusing. I am only probably going to be in IOM for a year, two max so certainly outside the 90 day average over 4 years. I am taxed at source from my employer as a IOM tax resident, so no faffing with Ltd Co's etc. SO I have two issues I guess - Firstly my tax position with regards to if there will be any other taxes to pay back in UK and anything I need to be mindful of with regards to freedom to travel to UK at weekends, and, secondly, if to keep my Ltd Co spinning or to close it down - I have asked my accountant for figures to help steer this latter part though and chatting with him tomorrow.

If you don't have a home in IOM it is even more complicated. You need to read the statutory residency thoroughly

https://www.gov.uk/government/upload...nal_078500.pdf

It does appear that even 30 days in the UK can potentially make you tax resident if you have a home. The 90 days seems to refer to whether you have a flat/house for that long which means if you do then it can be considered home and then if you are there for 30 days then you are tax resident provided you don't have an overseas home.

It looks to me like you have to really move to the IOM and just make occasional visits to the UK or give up your flat/house eg rent it out.

[Wilmslow]

You will still pay IOM tax but you also need to ensure you're not eligible to pay additional tax in the UK.

This is my question. I have no sprogs or partner in the UK, just looking to return back some weekends in an effort to keep relatively sane. I could aim to spend many of the weekends as long weekends in my mothers apartment in the south of France if spending more than 90 days in the UK is a real issue - This I am not sure on, as it can be taken as 90 nights, 90 full days, and also continuous 90 days so rather confusing. I am only probably going to be in IOM for a year, two max so certainly outside the 90 day average over 4 years. I am taxed at source from my employer as a IOM tax resident, so no faffing with Ltd Co's etc. SO I have two issues I guess - Firstly my tax position with regards to if there will be any other taxes to pay back in UK and anything I need to be mindful of with regards to freedom to travel to UK at weekends, and, secondly, if to keep my Ltd Co spinning or to close it down - I have asked my accountant for figures to help steer this latter part though and chatting with him tomorrow.

[BlasterBates]

Interesting - I wonder how many contractors work away and commute back at weekends, and implications thereof. It may be best for me to spend some weekends / holidays abroad this year - Staying on the island at weekends is a real challenge and test of the metal at this time of year!! I am a IOM Tax Resident - did not consider I may be restricted in what I do at weekends.....

The problem is in how the government defines where your home is. If you have a partner in the UK you need to check the rules in more depth, just in case. It is worth an hour or two with an accountant.

I was an international commuter and although I spent most of my time in Switzerland in Germany I was still tax resident because I rented a flat of a certain size and it was my main residence. The German tax authority didn't demand any extra tax through because employment income was only taxed once.

You will still pay IOM tax but you also need to ensure you're not eligible to pay additional tax in the UK.

[Sausage Surprise]

Interesting - I wonder how many contractors work away and commute back at weekends, and implications thereof. It may be best for me to spend some weekends / holidays abroad this year - Staying on the island at weekends is a real challenge and test of the metal at this time of year!! I am a IOM Tax Resident - did not consider I may be restricted in what I do at weekends.....

Tin head?

[Wilmslow]

Just make sure you spend no more than 91 days in the UK to ensure you're definitely not UK tax resident.

Interesting - I wonder how many contractors work away and commute back at weekends, and implications thereof. It may be best for me to spend some weekends / holidays abroad this year - Staying on the island at weekends is a real challenge and test of the metal at this time of year!! I am a IOM Tax Resident - did not consider I may be restricted in what I do at weekends.....

[BlasterBates]

Just make sure you spend no more than 91 days in the UK to ensure you're definitely not UK tax resident.

https://www.gov.uk/tax-foreign-income/residence

you work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which no more than 30 were spent working

If you have a few weeks on holiday at home and come back every weekend you may end up over that threshold.

Make sure you have proof you maybe asked for it, and if you don't provide it they'll make up their own minds, normally plane tickets should suffice.

[northernladuk]

An FTC is effectively an employment contract.

https://www.gov.uk/fixed-term-contracts

I think you need to look at how much you've got in the company and think about the new rules around capital distribution and restarting in the same trade within two years.

http://www.friendandgrant.co.uk/tax-...imited-company

[Wilmslow]

Just curious - Has anyone taken on a Fixed Term role as opposed to a regular contract, and if so, how have you handled your Ltd Co?

I have started a Fixed Term role in the public sector, but the twist being in the Isle Of Man - the gig is for 12 months and I am a bona-fide IOM tax resident - equates to going through Ltd Co near as darned it. Sadly cant claim the flights as I am coming back at weekends just now for sanity as the quiet season.

My dilemma is to close the Ltd Co or keep it open with the accountants dormancy fees.

I may continue in the IOM for a few years, or may go back to regular gigs - undecided at this point. I have asked my accountant for the sums for closing, and dormancy but they are a little slow to respond....