L1A and Taxes

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Old Jul 30th 2010, 3:30 pm
  #1  
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Default 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
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Old Jul 30th 2010, 4:46 pm
  #2  
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Default 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

Originally Posted by Clarki
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
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Old Jul 30th 2010, 6:38 pm
  #3  
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Default 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!
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Old Aug 2nd 2010, 9:18 pm
  #4  
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Default 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.....
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Old Aug 2nd 2010, 10:49 pm
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Default Re: L1A and Taxes

Thanks for the info. No uk earnings either.
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