Do I have to be resident somewhere?

johnhomie

Hi there, thanks in advance for any responses.

So my question is mostly about uk residency and double taxation.
I'm a British and Australian citizen, though I've grown up in the Uk.
My income comes from american companies I freelance for over the internet, paid into my uk bank account.
I've been in a number of countries so far this tax year, none for more than a month (including the uk).
My question is, to be non-resident for tax purposes in the uk, do I have to be resident somewhere else?
I'm aware that different countries have different requirements for residency, but I'm pretty sure I won't be in a country for more than a month or so, or be working with any companies outside of the US.

I will get round to talking to (and paying for ) professional advice, but any input would be appreciated.

yelf

interesting., if you're not resident anywhere you will probably be treated as being resident in the country which you are normally resident.

rockitup

I went Non-Resident a couple of years ago and had to firstly fill in a P85 Form (if I remember correctly) and to help prove my claim that I was leaving for good, I sold my house, brought another house in the country I was moving to and obtained a Permanent Residence Visa for that country too.

You can also be known as a Tax Nomad or Perpetual Tourist (same thing) but google these terms and most importantly spend a few hundred quid and get some advice from a tax adviser that specialises in working with Non-Residents. Tax Nomads are people who never stay in one country long enough to pay taxes.

It is well worth spending the money at the start if it saves you paying too much in the way of income tax.

How about the US Internal Revenue Service though? They don't let much out of their grip so you may need to either get advice on their tax system or buy a book first on US taxes, a good one to start with is one of those Dummies guides (like they sell for computer learners etc)

I suppose if you spend less than a month in the US their maybe won't be a tax bill but I wouldn't count on it. A lot of our American friends would love to escape the clutches of the IRS because they are still taxed on Worldwide Income even if they move to another country permanently.

johnhomie

Thanks rockitup, I had never heard about Tax nomads but it does look very interesting. As you suggest I will get professional advice, this looks like rather tricky stuff.
Yes I hear the IRS have rather long arms, I hear American citizens (unlike those of almost all other countries) can be taxable regardless of residence. So I won't plan on marrying an American girl any time soon, and will talk to an accountant before any holidays there

Thanks to both of you for your posts.

Cook_County

You are still UK resident and taxable on worldwide income and may need to be VAT registered. You are not having a clean break so remain UK resident.

Tugela

Hi, sorry for putting my two pennies in but I posted a question on here similar to yours John but have had no reply. My husband is employed by a UK Company, he is an Austrian Citizen, but he works in Europe 11months out of each year. He pays tax every month on his earnings to the UK!! He has filled in a P85 , contacted the Revenue numerous times to be fobbed off! Should he be paying tax or not? This has been on going for 2 years plus now!
Any advice please and thank you

Cook_County

Tugela wrote: »

Hi, sorry for putting my two pennies in but I posted a question on here similar to yours John but have had no reply. My husband is employed by a UK Company, he is an Austrian Citizen, but he works in Europe 11months out of each year. He pays tax every month on his earnings to the UK!! He has filled in a P85 , contacted the Revenue numerous times to be fobbed off! Should he be paying tax or not? This has been on going for 2 years plus now!
Any advice please and thank you

Yes he owes tax in either the UK or/and the countries that he work in. You do not provide enough detail to know which.

Tugela

Sorry ... h ere are some more details - not sure what you need.

He is employed by a UK company but at the moment is in Romania and has been there for 2 years
He is paid in the UK (i.e. his money is paid into his UK bank account)
His family live in the UK and he owns a house which they live in
His National Insurance contributions were stopped after 12 months of being away and he went on to voluntary contributions.
His company did tell him that he should be on a NT tax code after 12 months away.
But this has not been ongoing for 2 years and he is still having tax deducted every month.
I do understand that he should pay tax to the one country - but surely to the one he is living in (which would be cheaper than the UK)
Thanks ......... please feel free to ask anything because I would love to get direction in this

KathysBoy

You really need professional help, but for guidance you should read HMRC6 which sets out the rules about residency. You can download it from here. Also have a look at the double taxation agreement with Roumania, which is here. HMRC will only allow you to be paid gross (or pay you back what you've have paid) if you are a tax resident somewhere else, which usually means you have to have the application form stamped by the tax office of another country

I have to say that if you call them (the number is in the HMRC6) they are very helpful these days

KathysBoy

johnhomie wrote: »

Hi there, thanks in advance for any responses.

So my question is mostly about uk residency and double taxation.
I'm a British and Australian citizen, though I've grown up in the Uk.
My income comes from american companies I freelance for over the internet, paid into my uk bank account.
I've been in a number of countries so far this tax year, none for more than a month (including the uk).
My question is, to be non-resident for tax purposes in the uk, do I have to be resident somewhere else?
I'm aware that different countries have different requirements for residency, but I'm pretty sure I won't be in a country for more than a month or so, or be working with any companies outside of the US.

I will get round to talking to (and paying for ) professional advice, but any input would be appreciated.

You definitely need professional advice, but have a read through the HMRC6 (download from here. Although its about 80 pages, its quite easy to read, and contains a lot of information. As I said in an earlier post you could speak to them, as they're very helpful

Tugela

Thanks Kathy. For 2 years we have been in touch with the Revenue Office and for 2 years ha ve been pushed from here to there and back again. As they wont speak to me (the wife) and only my husband - it is costing him a lot of money to phone the tax office with his mobile from Romania - the other day he sat for over half an hour listening to music lol
ANyway...... whats another few years lol....... will keep at it and see what the outcome is
Once more.... thanks