Overseas working on 6 months contract - Does UK tax regime still apply?

[BlasterBates]

It´s not possible to become non-resident for 6 months. When you leave the UK you fill out this form to deregister http://www.hmrc.gov.uk/cnr/p85.pdfYou need to have the intention to be out of the country for at least one tax year.

The fact that you are in a foreign country for 6 months or less does not exempt you from tax. Non-residents are always taxable on income they receive in that country subject to certain exemptions. If you run your own UK Ltd you may be able to claim exemption as your permanent establishment is in the UK. However "careful", many contractors are deemed to be "disguised employees" and therefore are expected to pay tax, also there are exceptions to the general rule that a permanent establishment in that country is deemed to exist after 6 months.

My recommendation is to tax yourself in the country you will be working in. You will have a non-resident/not fully resident status but you will have taxable income. You will then declare your income in the UK and if the tax is less than you would have paid in the UK you may have to pay a top-up.

[jamesbrown]

BTW, take note of the info. about "temporary non-residence" in the link I provided.

[jamesbrown]

What will be required to become exempt from UK tax regime?

You seem to be alluding to your personal tax situation, but bear in mind your company too, if you have one. In terms of personal taxation, it is now significantly harder to become non-resident in the UK for tax purposes:

Residence and Domicile - can expats still rely on non-resident status?

Based on the very limited information you have provided, you will likely remain UK resident for tax purposes, but that doesn't prevent you from making use of standard rules to minimize double taxation through credits on UK taxes due for foreign taxes already paid, assuming they apply in your case (for that, you will need expert advice beyond the scope of this forum).

[stek]

What will be required to become exempt from UK tax regime?

Basically no connections to UK at all.

Tried this, you more or less have to cut yourself off from UK apart from visits but bear in mind you will pay tax somewhere - tax free is not the same as zero tax, be careful.

[SueEllen]

Depends.

I suggest you use the lovely search facility the forum has and put in the name of the mysterious country you are going to.

[GF London]

What will be required to become exempt from UK tax regime?