Migrating to Italy

tecmessa22

I hope I have this in the right forum. Basically I hope to live in Italy for five months working as a tour guide. I am a UK resident for the rest of the year. I would like to remian in the UK tax system; it has a double taxation agreement with Italy. I also have to fill out a 'Leaving the UK' form and a 'self-employed form.' Am I missing anything and will I be liable for tax in Italy?

jennifernil

The Italians are always keen to get their hands on your taxes! We found this when OH worked there for a bit. You may well have to pay Italian tax, but either will not also pay UK tax, or get the Italian tax you paid taken into account, hence no "double taxation"
If you wish to continue your NI contributions here you can probably get an E101 which will confirm to the Italians that you are paying here so do not need to pay NI there. You should enquire about getting it before you go.

tecmessa22

Thanks for the advice, jennifernil, I'll do just that! I'm hoping I can put money into my Nationwide account abroad to save on bank charges (I have a cirrus card).

jennifernil

You can certainly withdraw from Nationwide abroad, but I don't know about paying in, if that is what you mean. OH got his wages paid through a friend's account, he was not allowed to open an account himself! But that was in 1982. I expect things have moved on now. Certainly banks in Italy were very "quaint" then.

I think you will probably need to open an account there, or have your wages sent back to your UK account if you are working for a UK firm.

Holidaying there recently we had no problem withdrawing money from our Nationwide account at an ATM.

tecmessa22

Thanks for the advice! My Cirrus/Nationwide card has not let me down yet on my travels so I think I will arrange for cheques to be sent to my parents` credit card account and then transferred there. I will bite the bullet and pay Italian tax and arrange it with my nearest UK tax office before I go. At least I have the Nationwide - I think I will be with them for life, especially as the banks seem to delight in inflicting extra charges on people!

fengirl_2

As you will remain resident in the UK, you will be liable to UK tax come what may. You will get credit for Italian tax paid - but Uk tax is not an option.

asea

Would your employers not sort it out for you? I am also moving to Italy & our company is sorting it out so that we do not end up out of pocket tax-wise.

tecmessa22

Basically they told me to sort it out myself (only more politely). They said I would have to pay less tax if I remained in the UK system (which is true) but I don't think I can do that. Basically I think I have to pay Italian taxes and then let the Inland Revenue know. I have the other forms (technically as a tour guide I'm self-employed under Italian tax laws so 'Self-Employment' and 'Leaving the UK') but I'm going to the local enquiry office tomorrow to make sure I have covered everything.

Thanks for everyone's help!

Below is posted on the Inland Revenue's site:
[FONT=Arial, Helvetica, sans-serif]Paying your taxes
[/FONT][FONT=Arial, Helvetica, sans-serif]Normally, if you work abroad you are still treated as a tax resident of the UK. This basically means you will pay UK tax on anything you earn overseas. However, it also means you get the same tax allowances that you would receive in this country.[/FONT]
[FONT=Arial, Helvetica, sans-serif]If your overseas employer taxes you as well (and you aren't able to claim it back directly from the foreign authorities), you will be credited for this in the UK.[/FONT]