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"Working from home" for a UK company, in Portugal

"Working from home" for a UK company, in Portugal

Old Apr 5th 2021, 4:30 pm
  #31  
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Default Re: "Working from home" for a UK company, in Portugal

Btw HMRC Statutory residence rules are quite complicated and a simple notification to UK tax authorities may not suffice for one to automatically become non-resident, it all depends on automatic tests, or, failing that, on sufficient ties test.
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Old Apr 5th 2021, 4:53 pm
  #32  
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Default Re: "Working from home" for a UK company, in Portugal

Originally Posted by SgtTroy
Btw HMRC Statutory residence rules are quite complicated and a simple notification to UK tax authorities may not suffice for one to automatically become non-resident, it all depends on automatic tests, or, failing that, on sufficient ties test.
You have to look at the residence article in the double tax treaty - remember that the dta superimposes over internal law
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Old Apr 5th 2021, 5:01 pm
  #33  
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Default Re: "Working from home" for a UK company, in Portugal

Originally Posted by TonyJ1
You have to look at the residence article in the double tax treaty - remember that the dta superimposes over internal law
True, but DTA can provide relief or exemption from charge under domestic law, not so sure if DTA alone could provide for determination of residence status, which is what I was referring to, but I'm far from being an expert anyway.
https://www.gov.uk/hmrc-internal-man...ual/intm267626
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Old Apr 5th 2021, 5:08 pm
  #34  
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Default Re: "Working from home" for a UK company, in Portugal

Originally Posted by SgtTroy
True, but DTA can provide relief or exemption from charge under domestic law, not so sure if DTA alone could provide for determination of residence status, which is what I was referring to, but I'm far from being an expert anyway.
https://www.gov.uk/hmrc-internal-man...ual/intm267626
The residence article provides for so called 'tie breaks' -ie have to follow step by step to see who has taxing rights - best to organise life so that it is not up to the tax authorities to decide by 'mutual agreement' who has rights to tax - tax payer will be out of pocket until issue is resolved - which will likely be several years. As a general rule, dta supersedes internal law - but concepts such as center of vital interests is a very elastic concept - there has been cases decided where the parrot lived (even if this appears to be ridiculous)
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Old Apr 5th 2021, 5:13 pm
  #35  
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Default Re: "Working from home" for a UK company, in Portugal

True, again.

Fortunately we personally had a very clean break from UK, which at least saved all the hassle of dealing with DTA.

Hence my recommendation to anyone would be to avoid situations whereby it may indeed take years to resolve disputes over at least few thousand euros/pounds of tax.
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Old Apr 6th 2021, 10:07 am
  #36  
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Default Re: "Working from home" for a UK company, in Portugal

Originally Posted by TonyJ1
If you are resident you are taxed on a worldwide income basis. If you work remotely from Portugal, Portugal has the right to tax rather than the UK - I suggest you read carefully article 15 of the Portugal / UK double tax treaty.

I suspect the não deferido is because your address at the tax authority is still the UK, rather than your residence - you are supposed to keep the tax authority informed of any address changes (same in the UK, and other countries). I am sure the letter will list the reason why it was rejected - you just need to know how to interpret these letters.
Thanks for this, Tony.

I've attached the letter of "nao diferimento"

from AT.

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Old Apr 6th 2021, 10:16 am
  #37  
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Default Re: "Working from home" for a UK company, in Portugal

Originally Posted by suiko
Thanks for this, Tony.

I've attached the letter of "nao diferimento"

from AT.
This says that according to the Portuguese tax database you were not a non resident in the previous 5 tax years as required by the statute. You can get this overridden if you can prove you were tax resident elsewhere - this is a result of not updating / notifying the PT tax authorities of your change of address
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Old Apr 6th 2021, 10:27 am
  #38  
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Default Re: "Working from home" for a UK company, in Portugal

Thanks again. Yes, I know this - all happened because I never told them when I left Portugal back in 1993.

I have provided them with all the required documentation from HMRC stating residency in UK, though, along with translation and legalisation. What I don't get is why they haven't accepted it!
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Old Apr 6th 2021, 10:32 am
  #39  
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Default Re: "Working from home" for a UK company, in Portugal

Originally Posted by suiko
Thanks again. Yes, I know this - all happened because I never told them when I left Portugal back in 1993.

I have provided them with all the required documentation from HMRC stating residency in UK, though, along with translation and legalisation. What I don't get is why they haven't accepted it!
If you provided the necessary HMRC document they should accept - they have issued a document to this effect. I suspect you have missed something somewhere - did you get the document legalised with the Apostille of the Hague?
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Old Apr 6th 2021, 10:46 am
  #40  
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Default Re: "Working from home" for a UK company, in Portugal

No, that was not requested on any of the information provided by Financas.

How can I go about doing this, within Portugal?
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Old Apr 6th 2021, 11:06 am
  #41  
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Default Re: "Working from home" for a UK company, in Portugal

Originally Posted by suiko
No, that was not requested on any of the information provided by Financas.

How can I go about doing this, within Portugal?
You must realise that finanças follow the law - they don't hand hold, though sometimes they do so. The Apostille comes from the civil code - basically the tax authority can ignore foreign documents, even if originals, if they are not legal, though there has been tax cases where the authority has had to reverse position as they have the authority to request this type of issue under the double tax treaty - but you probably do not want to go down that rabbit hole.
The authentication should be done in the UK - do a 'obtaining apostille in the UK' as a web search - it is done by the government, but if you are in Portugal you may need the assistance of a private facilitator. You may also attempt the British embassy, but I suspect that they will inform you to send the documents back to the UK.
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Old Apr 6th 2021, 2:46 pm
  #42  
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Default Re: "Working from home" for a UK company, in Portugal

Thanks. Looks like this may be easier to do when I eventually get back to the UK in a month or two? Does any solicitor do it?
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Old Apr 7th 2021, 11:41 am
  #43  
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Default Re: "Working from home" for a UK company, in Portugal

Originally Posted by suiko
Thanks. Looks like this may be easier to do when I eventually get back to the UK in a month or two? Does any solicitor do it?
No the solicitor does not do it - this is normally done by the foreign office, though there are other government bodies that do it as well (High Court I think). Solicitor should know how to get it though.
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Old Apr 7th 2021, 11:43 am
  #44  
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Default Re: "Working from home" for a UK company, in Portugal

OK, thanks. I can contact the Foreign Office for this directly?
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Old Apr 7th 2021, 1:47 pm
  #45  
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Default Re: "Working from home" for a UK company, in Portugal

Originally Posted by suiko
OK, thanks. I can contact the Foreign Office for this directly?
If you look on the UK government web sites it tells how to handle this directly
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