Working abroad / UK Tax

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Natalie_blossom
Natalie_blossom Posts: 2 Newbie
in Cutting tax
I am a British citizen working abroad as a contractor. I own a Partnership/Business with my spouse & we are both Self Employed. We complete 3 Tax returns every year with HMRC. Aside from working in Europe for 2 months this summer, our business is mainly in Japan. We pay Japanese Taxes out of our monthly pay check when we are out there working, companies make payments to our UK Business Bank account. My question is, if the Tax is being deducted in Japan are we required to pay UK Tax when we are not earning & working in the UK? Any advice would be greatly appreciated.

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  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    edited 21 August 2019 at 11:14PM
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    Natalie_blossom wrote: »
    I am a British citizen working abroad as a contractor. I own a Partnership/Business with my spouse & we are both Self Employed. We complete 3 Tax returns every year with HMRC. Aside from working in Europe for 2 months this summer, our business is mainly in Japan. We pay Japanese Taxes out of our monthly pay check when we are out there working, companies make payments to our UK Business Bank account. My question is, if the Tax is being deducted in Japan are we required to pay UK Tax when we are not earning & working in the UK? Any advice would be greatly appreciated.
    good grief how long has this been going on?

    have you not investigated the rules around tax residency (which is not the same as citizenship) and how the UK and Japan tax treaty deals with income "earned" in each location? It is those rules which will clarify what should go on your UK tax returns both as UK and "foreign" income, with or without offsetting tax credits to reduce/eliminate a tax liability of that income to the "other" country

    I assume you don't have an accountant?

    https://www.gov.uk/government/publications/japan-tax-treaties
  • Natalie_blossom
    Natalie_blossom Posts: 2 Newbie
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    We work & live in Japan on a working Visa. We have been working in Japan since Jan 2018 & when we enter the country we are given our resident cards for the time we are booked to work out there. When a foreign national staying in Japan has departed from Japan without obtaining a re-entry permit they terminate our residence cards. We do not have citizenship out there, we are residents. How does this differ? I believe we pay 20% tax in Japan
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    Resident cards have nothing to do with tax residency.

    As asked in post #1, do you have an accountant?
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    Natalie_blossom wrote: »
    We work & live in Japan on a working Visa. We have been working in Japan since Jan 2018 & when we enter the country we are given our resident cards for the time we are booked to work out there. When a foreign national staying in Japan has departed from Japan without obtaining a re-entry permit they terminate our residence cards. We do not have citizenship out there, we are residents. How does this differ? I believe we pay 20% tax in Japan
    as i said, good grief did you take no advice whatsoever before embarking on this venture, knowing that you are already required to do tax returns?

    you have been given a link, please read it instead of expecting us to waste time telling you facts you can read for yourself.

    make sure you learn what a tax resident is, how the time is measured and how that impacts where you pay tax.

    https://www.litrg.org.uk/tax-guides/migrants/employment-and-self-employment/what-happens-when-i-leave-uk

    https://www.gov.uk/tax-uk-income-live-abroad/uk-resident
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    Natalie_blossom wrote: »
    We work & live in Japan on a working Visa. We have been working in Japan since Jan 2018 & when we enter the country we are given our resident cards for the time we are booked to work out there. When a foreign national staying in Japan has departed from Japan without obtaining a re-entry permit they terminate our residence cards. We do not have citizenship out there, we are residents. How does this differ? I believe we pay 20% tax in Japan



    Rather than 'believing' get professional help if your not sure or unable to believe a bunch of strangers on the internet.


    As above read the above links on clarifying your position
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Cook_County
    Cook_County Posts: 3,085 Forumite
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    How is your foreign partnership taxed in Japan?
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