Anybody still paying UK taxes?
#1
Forum Regular
Thread Starter
Joined: Oct 2010
Posts: 44
Anybody still paying UK taxes?
Hello, we are getting all geared up for the big move at the end of the month!
I have handed my notice in at work, but they want to outsource me work once I am settled (graphics work), so I am considering registering as self-employed and will invoice them monthly for what I have done...
Now the tricky bit! I have had a look at HM Revenue and Customs site and my eyes crossed a few times.
I will be having Italian residence as I am buying there (beside I have an Italian citizenship already as I was born there), I already have a codice fiscale and I know that once I own a house I need to fill a tax return in Italy. So clearly I will have to declare my earnings in the UK and they will be in the UK because they will transfer my payments to my UK account...
Now, with the double taxation treaty thingy or whatever it is called does anybody know where I am expected to pay my income tax? Obviously I would much rather carry on paying them here in the UK as this is where my working life has always been and all my contributions are here and I wouldn't really want to lose them... beside it would be cheaper I think
Have I made any sense, when it comes to taxes I confuse myself
thanks in advance!
I have handed my notice in at work, but they want to outsource me work once I am settled (graphics work), so I am considering registering as self-employed and will invoice them monthly for what I have done...
Now the tricky bit! I have had a look at HM Revenue and Customs site and my eyes crossed a few times.
I will be having Italian residence as I am buying there (beside I have an Italian citizenship already as I was born there), I already have a codice fiscale and I know that once I own a house I need to fill a tax return in Italy. So clearly I will have to declare my earnings in the UK and they will be in the UK because they will transfer my payments to my UK account...
Now, with the double taxation treaty thingy or whatever it is called does anybody know where I am expected to pay my income tax? Obviously I would much rather carry on paying them here in the UK as this is where my working life has always been and all my contributions are here and I wouldn't really want to lose them... beside it would be cheaper I think
Have I made any sense, when it comes to taxes I confuse myself
thanks in advance!
#2
Re: Anybody still paying UK taxes?
You really have no option, if you live and work in Italy for the majority of the year (>183 days I think they quote) then you have to file tax returns in Italy and pay tax in Italy on your worldwide income. There are some exceptions such as un-earned income (dividends, bank interest, rental income from UK property etc) for these the tax is paid in the country that the income arises (in your case UK). Some people are exempt from this such as armed forces, crown employees, UN employees. They either pay no tax or pay in their country of domicile.
Regarding contributions I assume you are talking about national insurance contributions (to preserve state pension rights etc) if so then you should pay in Italy how this happens depends on whether you are self employed or an employee. You can also choose to pay voluntary contributions (class 2 or 3) in the UK. Either way paying NI contributions within any EU member country will maintain your state pension rights.
Regarding contributions I assume you are talking about national insurance contributions (to preserve state pension rights etc) if so then you should pay in Italy how this happens depends on whether you are self employed or an employee. You can also choose to pay voluntary contributions (class 2 or 3) in the UK. Either way paying NI contributions within any EU member country will maintain your state pension rights.
#3
Forum Regular
Joined: Feb 2011
Posts: 68
Re: Anybody still paying UK taxes?
The only way you can continue to pay tax through the UK system is to live in Italy and only work in the UK. This means that you cannot do any work in Italy even on a computer.
Unfortunately, if you do any work in Italy, whether or not you are paid in the UK its irrelevant to the tax authorities.
Good luck !!!
Unfortunately, if you do any work in Italy, whether or not you are paid in the UK its irrelevant to the tax authorities.
Good luck !!!
#4
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Thread Starter
Joined: Oct 2010
Posts: 44
Re: Anybody still paying UK taxes?
oh doom!!! Thanks for your answers, sounds like it's going to be a bit of a nightmare. Surely HM revenue and Customs will still expect me to fill up a tax return here as well... Two of the dreaded things?
#5
Re: Anybody still paying UK taxes?
I do work in Italy and invoice trough my UK company and pay taxes in the UK, My invoices have my UK IBAN and they pay direct into the UK account,
Speaking to my accountant he has told me that they can not tax you twice, As long as you are paid in a UK bank account, My business in registered in the UK and I have a UK business address.
When I go over to the UK I bring money back with me or Hole in the wall in Italy: I have a bank account here and all the money that goes in that is English money.
The only bummer is that a lot of Italian companies do not understand when you say that you do not have a VAT number: Work between 2 EU countries does not have VAT: what supposed to happen is the each country puts on their own VAT: so if you invoice a company it should be without VAT (if you are invoicing from the UK) BUT they stull want a VAT number..I do not have one and just tell them, Its up to them to sort it out with Their accountant;
Speaking to my accountant he has told me that they can not tax you twice, As long as you are paid in a UK bank account, My business in registered in the UK and I have a UK business address.
When I go over to the UK I bring money back with me or Hole in the wall in Italy: I have a bank account here and all the money that goes in that is English money.
The only bummer is that a lot of Italian companies do not understand when you say that you do not have a VAT number: Work between 2 EU countries does not have VAT: what supposed to happen is the each country puts on their own VAT: so if you invoice a company it should be without VAT (if you are invoicing from the UK) BUT they stull want a VAT number..I do not have one and just tell them, Its up to them to sort it out with Their accountant;
Last edited by Mr Posh; Mar 5th 2011 at 5:59 pm.
#6
Forum Regular
Thread Starter
Joined: Oct 2010
Posts: 44
Re: Anybody still paying UK taxes?
Thank you Mr Posh, that's interesting! I will be doing graphics and strictly speaking will simply register as self employed so you scenario might not apply as my business address would be in Italy (home address). Having said that I could perhaps set up a company (in the UK) instead of going self employed... although I wouldn't have an address as such.
#7
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Joined: Apr 2007
Location: Verona/ Nr Turin
Posts: 4,670
Re: Anybody still paying UK taxes?
Thank you Mr Posh, that's interesting! I will be doing graphics and strictly speaking will simply register as self employed so you scenario might not apply as my business address would be in Italy (home address). Having said that I could perhaps set up a company (in the UK) instead of going self employed... although I wouldn't have an address as such.
#8
Forum Regular
Joined: Feb 2011
Posts: 68
Re: Anybody still paying UK taxes?
I do work in Italy and invoice trough my UK company and pay taxes in the UK, My invoices have my UK IBAN and they pay direct into the UK account,
Speaking to my accountant he has told me that they can not tax you twice, As long as you are paid in a UK bank account, My business in registered in the UK and I have a UK business address.
When I go over to the UK I bring money back with me or Hole in the wall in Italy: I have a bank account here and all the money that goes in that is English money.
The only bummer is that a lot of Italian companies do not understand when you say that you do not have a VAT number: Work between 2 EU countries does not have VAT: what supposed to happen is the each country puts on their own VAT: so if you invoice a company it should be without VAT (if you are invoicing from the UK) BUT they stull want a VAT number..I do not have one and just tell them, Its up to them to sort it out with Their accountant;
Speaking to my accountant he has told me that they can not tax you twice, As long as you are paid in a UK bank account, My business in registered in the UK and I have a UK business address.
When I go over to the UK I bring money back with me or Hole in the wall in Italy: I have a bank account here and all the money that goes in that is English money.
The only bummer is that a lot of Italian companies do not understand when you say that you do not have a VAT number: Work between 2 EU countries does not have VAT: what supposed to happen is the each country puts on their own VAT: so if you invoice a company it should be without VAT (if you are invoicing from the UK) BUT they stull want a VAT number..I do not have one and just tell them, Its up to them to sort it out with Their accountant;
The reason I ask is that my OH is self employed in the UK and returns there to work, but the 'Charity and Assets' people in Newcastle who deal with health etc. are pretty strict that he does no work here in Italy.
Maybe if you have a LTD company the rules are different?