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Earning money through a partnership while travelling abroad - what to do about HMRC?

Hi all,

I’ve been part of a software development partnership since 2022, and have filed self assessment for the 22-23 tax year, on behalf of the partnership and myself. We’ve already been paid for 1 invoice in the 23-24 tax year, so I’ll also be submitting a self assessment next year. 

Up until last week I was also in full time employment, however I’ll be leaving the country next week and travelling south east Asia & Australia for between 9-12 months (shouldn’t be over a year). I’ve received my p45 from my old job, and plan to tell HMRC that I’ll be leaving the country. However, I plan on continuing working for the partnership whilst I’m away, as we have more work incoming and I can do it from anywhere in the world. 

That being said, I’m unsure of any implications with HMRC while working abroad and being paid for work. Do I just go about things as normal, paying tax after submitting my self assessment next year? Or will HMRC penalise me/need to be told I’ll be working for a UK based company whilst abroad?

Also, is there anything else Im missing regarding HMRC and travelling for up to the year?

Apologies for asking multiple questions, I just want to make sure I don’t miss anything!

Comments

  • Grumpy_chap
    Grumpy_chap Posts: 18,437 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Hi all,

    I’ve been part of a software development partnership since 2022, and have filed self assessment for the 22-23 tax year, on behalf of the partnership and myself. We’ve already been paid for 1 invoice in the 23-24 tax year, so I’ll also be submitting a self assessment next year. 

    Up until last week I was also in full time employment, however I’ll be leaving the country next week and travelling south east Asia & Australia for between 9-12 months (shouldn’t be over a year). I’ve received my p45 from my old job, and plan to tell HMRC that I’ll be leaving the country. However, I plan on continuing working for the partnership whilst I’m away, as we have more work incoming and I can do it from anywhere in the world. 

    That being said, I’m unsure of any implications with HMRC while working abroad and being paid for work. Do I just go about things as normal, paying tax after submitting my self assessment next year? Or will HMRC penalise me/need to be told I’ll be working for a UK based company whilst abroad?

    Also, is there anything else Im missing regarding HMRC and travelling for up to the year?

    Apologies for asking multiple questions, I just want to make sure I don’t miss anything!
    I can't answer the tax questions - sorry.  You may get more focused comments in that regard from the "cutting tax" board of this forum.

    You have not said what type of work the software partnership undertakes, but you may need to have consideration for processing of data outside the UK / EU and any data security / GDPR matters that may arise in data being outside of the home / originating state.
  • Thanks for the reply - I’ll cross post to that forum.

    All of the data will remain stored in the cloud, so we shouldn’t have any GDPR issues!
  • Grumpy_chap
    Grumpy_chap Posts: 18,437 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 9 October 2023 at 8:27PM
    With regard to the data, simply being stored "in the cloud" may not be sufficient.
    It is not uncommon for Client's to expressly prohibit the processing of data outside certain jurisdictions. 


    Here is the OP's other thread.
    https://forums.moneysavingexpert.com/discussion/6477897/earning-money-through-a-partnership-while-travelling-abroad-what-to-do-about-hmrc#latest
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