UK taxation; overseas resident.

[Swamp_Rat]

If you're in the UK for 183 days or more in a tax year, you're resident for that year for tax purposes, agreed?

Logically then, if you're not resident in the UK for 183 days or more in a tax year, you're not subject to UK tax,yes?


If anyone has a reference to clarify the above, I'd appreciate your sharing it. Then I can write and tell them where to get off. Tried searching the IR website but no joy.


I did find this on British expats though; Clicky


Thanks in advance.

 

[Flying Felix]

IIRC it also depends on whether you are paid by a British registered company and into a British registered bank account. This is the main reason why British Srvicemen cannot be paid Tax free.

 

[Swamp_Rat]

Thanks for your input Felix.


My missus continues to receive tax forms to complete.

As a housewife, she has no income and she hasn't lived and therefore worked in UK for five years.


HMRC sent her a £100 bill/fine for not completing a tax return.


I would suggest this is grounds for harassment and extorting money by fraudulent means.

Hence I need to find a reference clarifying her criteria for non-residence status.

Thanks in advance.

 

[RogerOut2]

IIRC it also depends on whether you are paid by a British registered company and into a British registered bank account. This is the main reason why British Srvicemen cannot be paid Tax free.

Sorry mate that is not correct, I work for a UK company, paid into a LLoyds account at a Leeds branch, have been tax free for 8 of the past 10 years. Currently working in Abu Dhabi and have been for last 2 years.

As I understand its 183 days in a single tax year or an average of 91 days over 3 years, but you must complete a full tax year april to april to qualify.

 

[Flying Felix]

IIRC it also depends on whether you are paid by a British registered company and into a British registered bank account. This is the main reason why British Srvicemen cannot be paid Tax free.

Sorry mate that is not correct, I work for a UK company, paid into a LLoyds account at a Leeds branch, have been tax free for 8 of the past 10 years. Currently working in Abu Dhabi and have been for last 2 years.

As I understand its 183 days in a single tax year or an average of 91 days over 3 years, but you must complete a full tax year april to april to qualify.

You may find that the UK company has a foreign registered subsidiary, partner etc and that's who actually pays you. For example Shell UK, Royal Dutch Shell (not a great example as they are both European companies, but you get the idea).

I'm not an expert on this but my brother used to run a company that insured that all his employees were tax free.

Then again I could be wrong.

 

[Enigma266]

An individual is resident in the UK for a given tax year if either 1. He is present in the UK for 183 days for more or 2. Makes substantial annual visits to the UK. Visits averaging 91 days or more for each of four or more consecutive years will make the person resident for each of these tax years. However, if you are emigrating from the UK the four years are reduced to three.

If days are spent in the UK because of exceptional circumstances beyond your control then those days are ignored for the purposes of the 92 day rule but not for the 183 rule.

I hate to state the bleeding obvious but I take it she has told HMRC that she no longer lives in the UK? I can put you in touch with a specialist tax bod if you like?

 

[Swamp_Rat]

I hate to state the bleeding obvious but I take it she has told HMRC that she no longer lives in the UK? I can put you in touch with a specialist tax bod if you like?

Yes indeed, she completed the tax return the year following the November she departed UK.

They acknowledged her overseas residency and gave her the tax refund she was due for the year she left UK.

However, they still send her a tax form to complete every year. On each occasion she politely reminds them she is no longer resident in the UK, whatsoever.

Last year she didn't complete it, received the letter 19mar09 saying she owes 100 notes plus interest added every 30 days it's outstanding. They sent the letter on 13feb09.


Thanks, by the way.

Having only internet access to information is restricting but I'm grateful for your input and experience. Thanks again.


They included an appeal form with the billing letter. I think we'll just complete that and say 'Look, I don't live in your country any more. I've already stated I don't have a UK income. Why do you keep harassing me an demanding money from me?' ...something like that anyway, how does it sound?

 

[pensionprisoner]

I hate to state the bleeding obvious but I take it she has told HMRC that she no longer lives in the UK? I can put you in touch with a specialist tax bod if you like?

Yes indeed, she completed the tax return the year following the November she departed UK.

They acknowledged her overseas residency and gave her the tax refund she was due for the year she left UK.

However, they still send her a tax form to complete every year. On each occasion she politely reminds them she is no longer resident in the UK, whatsoever.

Last year she didn't complete it, received the letter 19mar09 saying she owes 100 notes plus interest added every 30 days it's outstanding. They sent the letter on 13feb09.

The lesson learnt s to fill the form out every year, regardless of where u are. How do the inland revenue know that your wife hasnt moved back to the uk in that tax year, as some people do at very short notice!!!! (for example). ignorance of a letter is no excuse, im sure the rules state fill it in or be fined. The HMRC do not have crystal balls.

I have not been back to the uk for years, however refusing to pay uk tax on this basis would be extremely stupid as then you would have to pay the tax and health insurance costs of the country that u r in (eg Germany). The fact is that in europe at your earnings have to be taxed somewhere.

P.s whilst posted overseas you and your family come under UK law (as described in the relevant SOFAs).

p.p.s I pay my taxes, my taxes then pay me!!!!

 

[Enigma266]

The problem you have is that the HMRC are not exactly flush. They dont like to part with any money at the moment and will try and obtain it from any means it can. I know that if you speak to your local tax office (if you have one, or whoever is issuing the tax returns) and mention "the Tax Commissioner" and ask for his address and phone number the whole world kicks off and all of a sudden blocks are no longer in your way. If it ends up going all the way to him then there is a 9 out of 10 chance he will rule in your favour. And all penalites are actually dismissed.

I know of two people who are currently fighting with the HMRC. One they are claiming is a higher rate tax payer - impressive as he is part time and the other has been PAYE for 4 years!! Good luck and if you have any more questions feel free to PM me and I will try to help in anyway I can but I am not a tax specialist.

However the IR can send tax returns for several years after this time and would expect you to still complete them though.

 

[Steven]

Why are you even bothering to answer the letters?

If you have left the UK and are no longer resident there, have no income from there and are not in any way lible to pay tax there then just file the thing in file 13 and forget about it.
To be polite you could send them a letter stating your non resident-non tax lible status but you don't have to.

I take it you pay tax health insurance etc etc in where ever you are now? If so then the IR have no claim on you whatsoever.

You do end up paying tax on your mil pension because it comes from a UK source but if that is your total uk income then it should be about £60 a year.

Please note this advice is only my non expert opinon and if you find yourself doing a 10 stretch for tax evaison then it ain't my fault.

 

[pensionprisoner]

Why are you even bothering to answer the letters?

If you have left the UK and are no longer resident there, have no income from there and are not in any way lible to pay tax there then just file the thing in file 13 and forget about it.
To be polite you could send them a letter stating your non resident-non tax lible status but you don't have to.

I take it you pay tax health insurance etc etc in where ever you are now? If so then the IR have no claim on you whatsoever.

You do end up paying tax on your mil pension because it comes from a UK source but if that is your total uk income then it should be about £60 a year.

Im guessing strangely enough, that she is a pad wife living with her husband, therefore the advice given above may be slightly misguided.
Please note this advice is only my non expert opinon and if you find yourself doing a 10 stretch for tax evaison then it ain't my fault.

 

[Steven]

[
Im guessing strangely enough, that she is a pad wife living with her husband, therefore the advice given above may be slightly misguided.

If she is a pads wife then I don't think she can be classed as a non resident.

Different rules for that and if she is a "wife of "then feel free to ignore everything I wrote.

 

[Swamp_Rat]

My apologies Gents, should have mentioned I was demobbed end of '92 prior to relocating permanently to Belize.

Missus was working for several years in UK whilst receiving longterm medical treatment.

What I'll do is appeal the application of a fine and also ask for details of "the Tax Commissioner" as you suggested E.

Hopefully that will draw a line under it.

Many thanks for your enlightening suggestions, once again I am very grateful that.

 

[Swamp_Rat]

Just to add that when I get a result I'll post it here so anyone can search and learn later on.