Double taxation - how bad?
Dec 15th 2004, 3:36 am
#16
Retired
Joined: Apr 2004
Posts: 34,649
Re: Double taxation - how bad?
Originally Posted by BlightyBoy
The grey area is that it is files sent over the internet! Is that counted as earned in the UK?
Jeremy
Dec 15th 2004, 4:03 am
#17
BE Site Lead
Joined: Aug 2004
Location: MA, USA
Posts: 92,170
Re: Double taxation - how bad?
Originally Posted by BlightyBoy
The grey area is that it is files sent over the internet! Is that counted as earned in the UK?
Dec 15th 2004, 8:25 am
#18
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Location: Cape Town - South Africa
Posts: 72
Re: Double taxation - how bad?
Originally Posted by BlightyBoy
As I understand it, if you are living in another country but received money from the UK you have to pay tax on that income to the UK as well as pay tax in the country in which you live.
Is anyone doing this? What concessions are there for paying tax twice? How bad is it?
Is anyone doing this? What concessions are there for paying tax twice? How bad is it?
Therefore double taxation should not apply. In reality i get the picture that you invoicing for work done in the UK and not being employed by someone in the UK?
Dec 15th 2004, 1:29 pm
#19
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Posts: 101
Re: Double taxation - how bad?
Originally Posted by Stuart James
The issue here is one of residency first - how long are you going to be staying in the UK for during the tax year (06/04 - 05/04). If you are abiding by the rules concerning days in the country (183) and at least 60 out of of UK on the trot and receiving your income abroad you should not be laible for any UK taxation.
Therefore double taxation should not apply. In reality i get the picture that you invoicing for work done in the UK and not being employed by someone in the UK?
Therefore double taxation should not apply. In reality i get the picture that you invoicing for work done in the UK and not being employed by someone in the UK?
I am British but living permanently in America, have not been back to UK for 2 years. I am sitting working at a computer in US and sending files to the UK which I then invoice a Uk company for and I am paid in British stirling.
Hope that clears things up! Looks like I have nothing to pay then. Yippee!
Dec 15th 2004, 4:53 pm
#20
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Posts: 101
Re: Double taxation - how bad?
Originally Posted by BlightyBoy
I am British but living permanently in America, have not been back to UK for 2 years. I am sitting working at a computer in US and sending files to the UK which I then invoice a Uk company for and I am paid in British stirling.
Hope that clears things up! Looks like I have nothing to pay then. Yippee!
Hope that clears things up! Looks like I have nothing to pay then. Yippee!
Dec 20th 2004, 2:09 am
#21
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Location: Brisbane!
Posts: 209
Re: Double taxation - how bad?
If you were employed directly by the company in the UK, or were an employee of the company in the UK who then sent you abroad but continued to pay you from the UK, then I believe there would have been some liability.
There is also the case of if the money was earnt whilst you were in the uk, such as for example company share options which were given to you and accrued during your time in the UK, but exercised whilst you were overseas, this would also be subject to taxation in the UK regardless of your time spent abroad or your residence status. Alot of other things depends like others have said with regards to your status, and how long of the financial year you have spent in the country (or out of it).
I nearly went crazy trying to work it all out and decided that, each case is different and has its own grey areas and only a trip to your accountant can truely work it out unfortunately!
There is also the case of if the money was earnt whilst you were in the uk, such as for example company share options which were given to you and accrued during your time in the UK, but exercised whilst you were overseas, this would also be subject to taxation in the UK regardless of your time spent abroad or your residence status. Alot of other things depends like others have said with regards to your status, and how long of the financial year you have spent in the country (or out of it).
I nearly went crazy trying to work it all out and decided that, each case is different and has its own grey areas and only a trip to your accountant can truely work it out unfortunately!
Originally Posted by BlightyBoy
Just for other's information. My accountant spoke to the Inland Revenue and indeed I don't have anything to pay.
