Pistolpete2

To me stealth taxes are not stealthy for their complexity but are imposed because, for example, your pay goes up in some attempt at keeping up with inflation while the allowances stay put. This can also push you into a higher tax bracket. So the taxes hit you without necessarily hitting the headlines.

Of course National Insurance contributions are mostly Income Tax in stealthy sheep's clothing.

The tax code is complex because the accountants are able to pull-off ever more complex methods of avoidance such as the monstrous Double Irish Arrangement:

http://en.wikipedia.org/wiki/Double_Irish_arrangement

talking of avoidance,

FYRE, the new Statutory Residence Test is well up the charts for complexity but seems to cover all the angles:

https://www.gov.uk/government/upload...e_test.pdf.pdf

Pistolpete2

Thanks Bud!

Already bought a one-way for the commitment and because it is way cheaper when you get it with bought discounted frequent flyer miles - flip-side is that you have to buy EARLY or availability is GONE - so we just have to get the various ducks in a row. I have to be careful to temper the euphoria as there is a lot to be accomplished before we are merrily ensconced where - I think - we want to settle in Devon.

We have accommodation for a month sorted and I have spoken to an estate agent for rentals who was helpful and reassuring regarding our surety for the prospective landlord since we have only rented before when in Bermuda up to seven years ago - having some existing moderate but stable UK income and a UK bank account counted for a lot. We will touch base with them three months ahead of time and check supply over their coverage area.

We find using Travelodge and now the increasing number of Hampton Inns (Hilton) (kids are kids up to age 17 and breakfast is included) helps a lot with the initial budget as compared with self-catering, particularly when you are in season (July/August).

robin1234

Many points to ponder and worthy of comment, thanks. But I'll just comment on that footnote, in relation to US Government policy.

I'm like that ideal immigrant, except that I moved to the US when aged forty. Now I'd like to move home to the UK, so I'll just have a quick read of that ninety-six page guide to when I will become a UK resident for tax purposes..

But because of the tax complexities, that is the fact that as a US citizen I'll always have to file tax, 8938, FBAR etc., it's actually easier to remain in the US for life and just visit the UK as a tourist for a couple of months a year. That way I'll only have one set of tax obligations (well .. IRS plus State) and I'll not have to pay thousands of dollars for specialist advice and tax prep.

Surely the US would save money if I left and went to live in the UK? Then they wouldn't have to provide me with subsidized healthcare for life. That is, I'm Medicare eligible but wouldn't consume services if I lived in the UK.

Bud the Wiser

I would say it's the other way around. i.e. because the tax code is complex accountants can pull off clever avoidance schemes.

Have you had a chance to look at www.fairtax.org?

I'm a firm believer in the word, 'simplify'. Complexity ( rules, regulations, tax codes, phone bills, energy bills etc. etc. ) has crept into every bodies daily life and causes undue stress on those least able to cope, and it doesn't have to be like that.......but that's another topic.

cue........

Pistolpete2

I'm sorry! I put in the Government document to make a point.

Here is a somewhat easier version to better get your head around:

http://www.macfarlanes.com/media/734...nce%20test.pdf

there are others that are possibly easier to follow still.

Indeed we are now seeing USCs renouncing their citizenship because the US no longer holds the attraction to them to return one day and the ongoing tax filing obligations have tipped the boat over.

I thought of you after your post elsewhere, knowing that you wanted to spend time in both jurisdictions and knowing that the UK has now tightened up on tax residency such that you can no longer simply play the under 92 days game because of family and other ties.

Pistolpete2

Tax code is complex to close loopholes. So long as loopholes remain, accountants can create tax avoidance schemes but they can also create business structures which are there simply with tax avoidance in mind and it is up to clever Revenue personnel to unravel these as shams and show them for what they truly are and get the tax monies thus rightfully owed - no mean task.

UK has 32 billion owed in taxes considered due but this includes VAT.

Of course another sham arrangement which is hard to tackle to the satisfaction of HMRC, for example, is transfer pricing. We've seen this with Starbucks who 'warehouse' their coffee in Switzerland - sure!!! - and then charge high transfer prices from that tax free area to the roasters in Holland, another tax free or low tax area, before 'shipping' the coffee to the UK, where the coffee is 'imported' so expensively priced that there is little or no room left for profit.

robin1234

Thanks! I printed off that six pager from Macfarlanes you linked to. That looks like a good place to start.

I'd like to spend two months in the UK in January - February, possibly in a holiday rental at discount price, then back home to my wife in March in time to do the taxes. I figure if I can make a go of it for two months in less than ideal conditions and short days, then I can seriously consider repatriating to England for half the year at least. Bearing in mind, that even with good health, the appetite for regular seven hour flights will decrease as the years go by ...

Pistolpete2

Sounds like a plan! I absolutely agree with the long-haul flight bit.

Having been away from the UK for winters for almost the entire thirty-seven years absence I kind of look forward to the way I would 'work' that time of year; making a beeline for pub roaring log fires - not many out here - and spending time in the areas which are inundated with people in season or in reliable good weather.

chris955

More good news for anyone looking at making the move 'home'.
http://www.bbc.co.uk/news/uk-24566994

Sally Redux

That will annoy them.

old.sparkles

I must admit I did wonder about those figures - but it is done from a survey of people rather than national statistics, so may be a truer reflection than actual crime stats. I wonder what the difference is between true crime and reported crime?

chris955

Yes you are probably right

chris955

Its interesting actually because quite often I see people using 'rising crime' as one of their reasons to leave the UK when in fact the opposite is clearly the case. Also interesting that they are usually headed for a country with almost identical crime rates.

Sally Redux

I don't know. I think efforts have been made to increase reporting.

chris955

Lets face it whatever good news is reported we see ' oh yes but...'