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    • adrian1979
    • By adrian1979 7th Jul 18, 8:46 PM
    • 18Posts
    • 1Thanks
    adrian1979
    2 country issue
    • #1
    • 7th Jul 18, 8:46 PM
    2 country issue 7th Jul 18 at 8:46 PM
    Hi,

    Iím from England and has been working abroad for 7 years in Cape Town as a marketing and revenue manager for a hotel. I gained permanent residency there . I moved back to England 6 months ago as we had a child and wanted to raise her here.

    While living in South Africa we bought a property. At the moment Iím still being paid into my South African bank and paying tax there even though Iíve moved back to England. They retained my services as I can still do my job remotely. Itís easier this way as we need the money in the account there to pay for the house as we didnít sell it. I then draw money our for general living assoctaied costs over here.



    Is it okay to do this? Is it legal?
Page 1
    • Spidernick
    • By Spidernick 7th Jul 18, 11:43 PM
    • 2,788 Posts
    • 5,375 Thanks
    Spidernick
    • #2
    • 7th Jul 18, 11:43 PM
    • #2
    • 7th Jul 18, 11:43 PM
    This is too complicated a matter for an in-depth analysis on this board, but your employer needs to check if UK PAYE withholding should be made (they could be penalised for not doing this), as a starting point. You are earning money in the UK and so should pay tax here, rather than South Africa. You need to register for Self-Assessment asap and file a 17/18 tax return (get a professional to do this, as they can look at things like when your tax residence status in the UK begins) and pay the 17/18 tax liability by the end of January.

    You should get a tax refund in South Africa to help pay the UK liability (as the UK earnings shouldn't ordinarily be taxable there, but I am not an expect in South African tax). Your employer should also see if the South African withholding can stop (in a worse-case scenario withholding may be due in both countries, with you then having to reclaim the tax that ultimately isn't due in South Africa - a cash-flow nightmare that I have seen before).

    This can be something of a can of worms, but don't just ignore this, as it will come back to bite you if you do. Talk to your employer in the first instance, as they may have other employees in similar circumstances and so may know how to take this forward.

    I hope this helps.
    'I want to die peacefully in my sleep, like my father. Not screaming and terrified like his passengers.' (Bob Monkhouse).

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    • 00ec25
    • By 00ec25 8th Jul 18, 8:09 AM
    • 6,636 Posts
    • 6,212 Thanks
    00ec25
    • #3
    • 8th Jul 18, 8:09 AM
    • #3
    • 8th Jul 18, 8:09 AM
    Is it okay to do this? Is it legal?
    Originally posted by adrian1979
    you are now a tax resident of the UK, so no, you cannot ignore that fact
    • Cook_County
    • By Cook_County 12th Jul 18, 8:53 AM
    • 2,926 Posts
    • 2,075 Thanks
    Cook_County
    • #4
    • 12th Jul 18, 8:53 AM
    • #4
    • 12th Jul 18, 8:53 AM
    Your employer has numerous legal obligations in England & Wales. Do you have a contract under English law? Are you getting your legal entitlements under English law? The primary liability is right here in the UK. Presumably you'll reclaim all the tax wrongly withheld in SA from UK source income.
    • antrobus
    • By antrobus 12th Jul 18, 10:47 AM
    • 15,765 Posts
    • 22,424 Thanks
    antrobus
    • #5
    • 12th Jul 18, 10:47 AM
    • #5
    • 12th Jul 18, 10:47 AM
    Your employer has numerous legal obligations in England & Wales. Do you have a contract under English law? Are you getting your legal entitlements under English law? The primary liability is right here in the UK. Presumably you'll reclaim all the tax wrongly withheld in SA from UK source income.
    Originally posted by Cook_County
    Or possibly none at all?

    The OP is working for a hotel based in South Africa. The employer may therefore have no 'UK presence'. OP would therefore be responsible for paying their own PAYE through SA.

    https://www.taxation.co.uk/Articles/2013/07/17/310691/personal-paye

    The double tax treaty might have something to say.

    https://www.gov.uk/government/publications/south-africa-tax-treaties
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