UK Income Tax

Old Feb 19th 2008, 5:14 am
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Default Re: UK Income Tax

Originally Posted by Bonny Boy View Post
This is a useful web page on the subject:

Also


Any reference to tax on money remitted to the UK is for UK Residents who have overseas income they bring in to the UK.
EC residents actually.

Tax is not levied on taxed income generally. It is when it is untaxed. You would not fill in a tax form whilst a (declared) non-resident - except perhaps for the year you go or return.

You should take paid advice. Professional advice that is. I only know the loopholes and will continue using them because I believe that remittances above about 5k are taxed. As they should be if you take an economists perspective come to think about it...
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Old Feb 19th 2008, 5:23 am
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Default Re: UK Income Tax

You would not fill in a tax form whilst a (declared) non-resident - except perhaps for the year you go or return.

Depends on your situation - I have some UK income from 'buy to lets' and investments which I receive free of tax at source and then make a tax return on them. As a declared Non-Resident, I do not have to complete details of my overseas employment on this tax return.
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Old Feb 19th 2008, 7:23 am
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Default Re: UK Income Tax

Originally Posted by Bonny Boy View Post
You would not fill in a tax form whilst a (declared) non-resident - except perhaps for the year you go or return.

Depends on your situation - I have some UK income from 'buy to lets' and investments which I receive free of tax at source and then make a tax return on them. As a declared Non-Resident, I do not have to complete details of my overseas employment on this tax return.
No you are quite right you do not have to declare employment details as a non resident when submitting a tax form.

You are subject to tax on remittances to the UK from untaxed income from abroad such as in Dubai or Oman in my case though, when these exceed about 5k and if you have reached your tax free limit then the lot may be subject to tax. I assume it is at marginal rather than maximum rates.

There is going to be an overhaul of the remittance rules - doubtless unfavourable - later on this year - scheduled for April I understand. Bet you they try to deal with rolled up or deferred interest!

Anyway, we differ on the tax treatment on remittances which I'm ok with

See you later, I'm off to Inja for a month. Dodgy G&T, good food, excruciating company (mine that is).
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Old Feb 19th 2008, 7:28 am
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Default Re: UK Income Tax

Originally Posted by Cham128 View Post
does that mean that if you worked in say sweeden where the tax rates are huge that when you bring the money back in the UK government will give you the difference back? if so i'm moving to sweeden!
HAHAHA nice one - you would not come back to the UK if you'd been in Sweden I think - you'd miss the taxes for one thing.!!!
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Old Feb 19th 2008, 8:07 am
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Default Re: UK Income Tax

Originally Posted by Old Lob View Post
Anyway, we differ on the tax treatment on remittances which I'm ok with.
I guess so.

References in the R & C website to tax on remitted income from overseas is with respect to UK Residents.

The issue of the amount of tax, if any, you have paid on overseas income is only relevant if you are looking for tax relief through double taxation agreements, again as a UK Resident.

All IMHO of course.

Anyway, each to their own, have a good trip to India.
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Old Feb 19th 2008, 8:44 am
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Default Re: UK Income Tax

Originally Posted by Bonny Boy View Post
I guess so.

References in the R & C website to tax on remitted income from overseas is with respect to UK Residents.

The issue of the amount of tax, if any, you have paid on overseas income is only relevant if you are looking for tax relief through double taxation agreements, again as a UK Resident.

All IMHO of course.
Sorry, but your interpretation is incorrect.

Even if you are non-resident, income remitted to the UK can be taxable.
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Old Feb 19th 2008, 8:55 am
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Default Re: UK Income Tax

It looks like HMRC are trying to confuse people by hiding information and then stinging them when it comes to tax returns. Does anyone know if you can go to a local tax office and arrange a meeting to discuss things, I'll see if this is possible and hopefully have the matter cleared up. I've just opened a fast food place in London, so don't want to get hurt by the tax man once I move to Bahrain.
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Old Feb 19th 2008, 9:12 am
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Default Re: UK Income Tax

Originally Posted by Meow View Post
Sorry, but your interpretation is incorrect.

Even if you are non-resident, income remitted to the UK can be taxable.
Hi Meow.

I am just trying to establish the facts before I act - I accept I may be wrong, but can find no statement anywhere in the R & C website about Non - Residents having to pay tax on income money they send home. What is your source for this information?
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Old Feb 19th 2008, 9:31 am
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Default Re: UK Income Tax

Originally Posted by Bonny Boy View Post
Hi Meow.

I am just trying to establish the facts before I act - I accept I may be wrong, but can find no statement anywhere in the R & C website about Non - Residents having to pay tax on income money they send home. What is your source for this information?

It is my job to know such things.....
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Old Feb 19th 2008, 5:11 pm
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Default Re: UK Income Tax

Originally Posted by Bonny Boy View Post
This is a useful web page on the subject:

http://www.direct.gov.uk/en/MoneyTax...UK/DG_10026136

Also

http://www.direct.gov.uk/en/MoneyTax...UK/DG_10027480

Reading these along with SA109 I link to above, I still am of the opinion that if you are Non-Resident, you pay no tax on overseas earnings, even when you send it to the UK. I can see no references to the contrary. Indeed, if you are Non-Resident, when you compile your UK tax return you do not have to declare your overseas income and there is no route for declaring money sent to the UK from such.

Any reference to tax on money remitted to the UK is for UK Residents who have overseas income they bring in to the UK.
My husband phoned them and told us that sending money to the UK to pay bills was fine and wouldn't be taxed, however we don't have this in writing anywhere. The website seems to indicate to me that you are not liable for income tax, but that you may get taxed on your savings. Can anyone clarify for sure? I feel another phonecall to the tax office coming on....
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Old Feb 20th 2008, 9:22 am
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Default Re: UK Income Tax

Originally Posted by pangy-p View Post
My husband phoned them and told us that sending money to the UK to pay bills was fine and wouldn't be taxed, however we don't have this in writing anywhere. The website seems to indicate to me that you are not liable for income tax, but that you may get taxed on your savings. Can anyone clarify for sure? I feel another phonecall to the tax office coming on....
From what i was told, any money earned wholly abroad and following the rules mentioned eariler in this thread - 183 days and full tax year etc will not be taxed. so if you bring it back then u wont be taxed (income) although there may be a customs issue. Once you put that money into a savings account, the interest earned will be taxed. this is what i was told by the stamp office.
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Old Feb 20th 2008, 9:39 am
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Default Re: UK Income Tax

Originally Posted by angelynv View Post
From what i was told, any money earned wholly abroad and following the rules mentioned eariler in this thread - 183 days and full tax year etc will not be taxed. so if you bring it back then u wont be taxed (income) although there may be a customs issue. Once you put that money into a savings account, the interest earned will be taxed. this is what i was told by the stamp office.

Thank you for that. I think we'll phone the tax office again just to be sure. I'm really worried if this is not the case as we've been sending money back for ages (gulp!)
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Old Feb 20th 2008, 10:02 am
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Default Re: UK Income Tax

It has always been my understanding, through reading of the UK Tax Guide, tax forms SA100, SA101, SA109 etc and notes thereon, plus IR211, C1, that as a bone fide Non Resident you do not pay tax on money sent back to the UK. Naturally, when it is in an account in the UK, any interest etc is taxed, hence the attraction of off shore banks.

However, a possible proposal in this year's budget is that 'temporary' Non Residents, defined as less than 5 years Non Resident, may in future have to pay tax in these circumstances. One to watch.
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Old Feb 20th 2008, 10:49 am
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Default Re: UK Income Tax

Originally Posted by Bonny Boy View Post
It has always been my understanding, through reading of the UK Tax Guide, tax forms SA100, SA101, SA109 etc and notes thereon, plus IR211, C1, that as a bone fide Non Resident you do not pay tax on money sent back to the UK. Naturally, when it is in an account in the UK, any interest etc is taxed, hence the attraction of off shore banks.

However, a possible proposal in this year's budget is that 'temporary' Non Residents, defined as less than 5 years Non Resident, may in future have to pay tax in these circumstances. One to watch.
i guess if possible keep some cash aside for a possible tax bill!
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Old Feb 20th 2008, 1:15 pm
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Default Re: UK Income Tax

Originally Posted by pangy-p View Post
Thank you for that. I think we'll phone the tax office again just to be sure. I'm really worried if this is not the case as we've been sending money back for ages (gulp!)
I called twice yesterday and on both occassions I was advised that as a non-resident any money sent back to the UK will not be taxed. When I called the second time the lady put me through to customs as she thought there may be a customs issue. Customs told me you are able to bring cash of upto Euros10,000 without declaring it. Anything over that needs to be declared but only because of money laundering reasons, no tax is applied to it.

But as Meow is an expert in this area I still have my doubts!!
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