Working part-time tax arrangements

redshoes_2

hi there,

I have been told that if you live abroad for six months of the year you will not be taxed, either on work you may do in uk for the other six months or on your pension, does anyone know if this is true?

scarlet.

Murdina

no. If you are out of UK for more than 183 days in any tax year you MAY be not tax resident for that period, which would mean that certain sources of income may not be taxed in the UK (but could well be taxed in the country you move to). However, any employment in the UK is pretty much always going to be taxed in the UK even if the duties you undertake here only mean you spend the odd day here. See http://www.hmrc.gov.uk/manuals/eimanual/eim40201.htm
Residence/non residence for tax is a complex area and not one for the novice to try and plan round without expert advice. And even with expert advice, you can come a cropper - if you want to read up on the rules have a search on the internet for some recent tax cases involving a Mr Gaines Cooper.
Pensions when non resident are also a complex area. Under the terms of some double taxation treaties, you may be exempted from UK tax on them if you are non-resident. http://www.hmrc.gov.uk/cnr/app_dtt.htm#3 is a good place to start reading. If you live somewhere which is a "tax haven" chances are no double taxation treaty.
Hope that helps - it is a very open ended question I'm afraid!

Jonbvn

Redshoes,

As a general rule, HMRC use a 90 day rule, which means that if you are in the UK for more than 90 days over an average of 4 years then you are defined as a resident for tax purposes.

If you are employed in the UK for a UK company then that company is obliged to deduct PAYE from your income. The same will also apply to your pension.

Generally speaking what is stated in your OP is not correct.

As the other poster mentioned this is a complex area and any mistakes may be costly.