L1A and Taxes
#1
Forum Regular
Thread Starter
Joined: Aug 2009
Posts: 68
L1A and Taxes
Hi!
I just had a conversation with a colleague who said that during the time that I was working in the US on my L1A, that I should have been paying 'equaliser' tax in the UK too, even though I was working in the US earning US dollars.
Does anyone know if that is true? I now have PR, and am a little nervous that I'll get stuck with a tax bill.
Any help welcome!
Thanks
Clair
I just had a conversation with a colleague who said that during the time that I was working in the US on my L1A, that I should have been paying 'equaliser' tax in the UK too, even though I was working in the US earning US dollars.
Does anyone know if that is true? I now have PR, and am a little nervous that I'll get stuck with a tax bill.
Any help welcome!
Thanks
Clair
#2
Passport Collector
Joined: Jan 2007
Location: Princeton, NJ
Posts: 725
Re: L1A and Taxes
It depends on when you became a non-resident of the UK for tax purposes. You'll be treated as non-resident from the day after you leave the UK if you can show:
-you left the UK to go abroad permanently or your absence and full-time work abroad lasts at least the whole tax year
-your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years
See here: http://www.hmrc.gov.uk/cnr/hmrc6.pdf
You must fill out form P85 after leaving the UK if you want to be treated as a non-resident:
http://www.hmrc.gov.uk/cnr/p85.pdf
-you left the UK to go abroad permanently or your absence and full-time work abroad lasts at least the whole tax year
-your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years
See here: http://www.hmrc.gov.uk/cnr/hmrc6.pdf
You must fill out form P85 after leaving the UK if you want to be treated as a non-resident:
http://www.hmrc.gov.uk/cnr/p85.pdf
Hi!
I just had a conversation with a colleague who said that during the time that I was working in the US on my L1A, that I should have been paying 'equaliser' tax in the UK too, even though I was working in the US earning US dollars.
Does anyone know if that is true? I now have PR, and am a little nervous that I'll get stuck with a tax bill.
Any help welcome!
Thanks
Clair
I just had a conversation with a colleague who said that during the time that I was working in the US on my L1A, that I should have been paying 'equaliser' tax in the UK too, even though I was working in the US earning US dollars.
Does anyone know if that is true? I now have PR, and am a little nervous that I'll get stuck with a tax bill.
Any help welcome!
Thanks
Clair
#3
Forum Regular
Thread Starter
Joined: Aug 2009
Posts: 68
Re: L1A and Taxes
Thank you! I left almost 3 years ago, and I've not had a trip back since. I suppose I am in the clear then
I appreciate the response!
I appreciate the response!
#4
Re: L1A and Taxes
If you have earnings IN the UK however (eg bank interest, dividends, rental income from a property) these will be subject to assessment for taxation IN the UK AND in the US.....
#5
Forum Regular
Thread Starter
Joined: Aug 2009
Posts: 68
Re: L1A and Taxes
Thanks for the info. No uk earnings either.