Working abroad, but living in UK - tax help please!

airhostess

Hi there,

Wondering if anyone can help. I currently live and work abroad outside of the EU and became non resident for tax purposes in May this year.

However, I have now been offered a job working abroad (on board an aircraft) for a company based in Luxembourg. The company want me to live in the UK though close to a London airport. My salary will be paid in Euro.
I have yet to see the formal job contract.

Can anyone let me know, do I have to pay UK or Luxembourg tax? How does this work on my euro salary, and do I need to contact the UK tax office about this? How would this affect any benefits or entitlements for the future (am specifically thinking of maternity benefits for the future.)

If anyone can help I'd be very grateful.

Thank you.

AH

Quillan

Hi friend, it becomes very much difficult for a non- resident if it comes to tax problems. Well the above given information was nice.

airhostess

Hi Jimmo,

Thank you, that is very helpful. Yes I ceased to live and work in the UK in May. I did not say that I aill be living outside the UK until 2010, but I did say the move was intended to be permanent, which it was.

Now I have been offered this great job and I am wondering whether to move back for it. If I return, will I have to now pay UK tax on what I have earned whilst abroad?

The new company now say I will only pay UK tax. I will ask about maternity benefits on the benefits forum.

Thanks for your reply.

Cook_County

According to your previous posts you are living in Morocco.

Assuming you have your habitual residence in Morocco (which would seem likely given that you have argued you are not resident in the UK, and you were married there), you are subject to personal income tax (impôt general sur le revenue or IGR) on worldwide income at graduated Moroccan rates.

Morocco should give you credit for UK tax on UK source income (such as tax on UK source interest) while the UK will ultimately give credit for Moroccan tax on income earned during your time in Morocco, given that you will not break UK residence.

Moroccan rates are similar to UK rates (Luxembourg rates are higher), but you will certainly owe UK - not Luxembourg - tax from what you have said on future income.