Smalls mum

Hi,
I need to find a really good (as in switched on) tax advisor for my husband. He works offshore, has very complicated tax affairs and the company we are currently with (having recently changed from the smaller firm he had been with for 20-something years who weren't exactly on-the-ball) is charging a fortune and basically doing nothing. Husband is UK tax resident but as he works offshore is out of the country for the requisite days; he is also out of Italy for more than 183 days a year.

I have searched the threads and googled (alot!) for information but would really appreciate a recommendation if anyone has one.
Thanks

teejaydee

I don't make recommendations, because I find it leads to problems, but you first need to do some research yourself to discover where he is tax resident.

Take a look at the following links:

Italy - Residence of individuals

UK Statutory Residence Test

Download the UK Statutory Residence Test pdf file and see what his tax residency status is with regard to the UK.

Then check the Italy tax residency rules, paying particular attention to the deemed tax residency element.

Smalls mum

teejaydee
Many thanks for this, its very useful.

teejaydee

My concern with your husband's tax residence is that Italy can deem someone to be a tax residence if Italy is the "centre of his social interests". In effect, this means, if you are resident in Italy, your husband will be deemed to also be resident (regardless of the number of days ne spends in the country). This is a problem because your husband will be liable in Italy to taxation on his worldwide income. Therefore, even though your husband earns his income in a tax-free country (e.g. the Middle East), he would have to declare this income in Italy (and pay tax on it).

This deemed tax residency rule is also found in Spain. This is one reason why the families of offshore workers choose to base themselves in Cyprus, where there is no deemed tax residency rule.

You haven't given sufficient information to determine whether your husband is tax resident in the UK. The rules changed a few years ago, and are now based on the Statutory Residency Test, to which I gave the link in my earlier post.

Please ask if you need further help.

Smalls mum

Having read the links that you kindly sent, I have sent them on to my husband who is currently offshore. He doesn't work in the Middle East, mostly in the North Sea. The Italian residency qualification requirements would apply to him, despite not being here for more than 183 days in a year. As to whether he meets the UK requirements, he has never been told by his UK accountants that he doesn't so has continued to file HMRC annual returns. I think at this stage we need an accountant who deals with both countries (which is not easy to find in Italy) and look at all the ramifications. My thanks again.

Tweedpipe

Smalls Mum,
You have a PM.