UK Tax liabilities

Discussion in 'Full Timers' started by FuglybusII, Dec 5, 2013.

  1. FuglybusII

    FuglybusII Read Only Funster

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    Hello Fulltimers!

    I'm very soon to be joining you and jacking in the rat race to take life at a much slower pace...

    Clare and I have been MEGA busy with FUGLYBUS II and it's almost ready to take away....

    I have a few questions relating to UK Tax liabilties which I hope some of you can help me with..

    1) I intend to from time to time take on freelance work and be paid via paypal.
    2) If i declaire to HMRC that I will no longer be resident in the UK while I'm full timing will I not be liable for UK Tax?
    3) Has anyone informed HMRC of thier NON DOM status?
    4) Is it likely they will try to pursue my for unpaid Tax if I don't tell them I'll be leaving the country for a while?

    Any help or advise you can offer is most welcome...

    Cheers,

    Chirstian & Clare
     
  2. Taran_Las

    Taran_Las Funster

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    Sorry I can't help but what a good question.:thumb:
     
  3. matamoros

    matamoros Funster

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    There are a lot of unknowns in your post ie
    Will you still be using a UK address?
    Are you currently self employed/self assessment?
    Will the work be for UK companies/residents who need invoices?
    Are you intending to pay any NI contributions?

    Not sure anyone could give a definitive answer but I would tend to assume that HMRC will try and get their hands on some money if they find out.

    I use my sons address and am still in a business partnership with him but now only do the books but am still obviously in the HMRC system.
     
  4. tonka

    tonka Funster Life Member

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    My thoughts are that if you give up UK residency...
    Where would you stand if you had serious health issues or had to return to UK for any reason, what if you had a serious accident / fire and your vehicle was written off etc. ?

    It all sounds nice when things are going ok but take into account the worst case scenario and cover your back.. Dont just look at the tax side of things..
     
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  5. John Laidler

    John Laidler Funster

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    Might also be worth trying to look on some ex-pat websites. This one is a company and no doubt touting for business : http://www.ukexpat.net/tax-information-topics.php

    HMRC are very good at closing "loopholes" these days so you will probably find the "obvious" no longer applies.

    If the sums involved are going to be significant I would strongly suggest getting professional advice from an accountant with experience in this area.
     
  6. Wildman

    Wildman Read Only Funster

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    Once non UK domiciled for more than 6 months you will lose all rights to Healthcare in the UK etc. You will also find it impossible to insure your vehicle and without UK Dom status you will have to export your van, but where to?Tax and MOT also raises questions, Income tax will become the least of your worries. The whole system is crosslinked and computerised these days. Will it affect your pension/winter fuel allowance as well, who knows. you are entering the twilight world..............................................:Rofl1:
    Besides who will be keeping my pension pot topped up
     
    Last edited: Dec 5, 2013
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  7. FuglybusII

    FuglybusII Read Only Funster

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    Well what a response already...THANK YOU GUYS!

    It looks like I will need to seek professional advise on this. I do plan to be doing the odd freelance project while away but for much smaller amount than I currently do...and only when the money runs out or I feel like it...

    So a little about me, I run a visualisation business that I will be stepping away from for at least a year to persue more relaxing activities...link to my buisienss below:

    www.vyonyx.com

    However if it all proves to much hastle then I will hand in my resigation and live a full time lifestyle...I'll worry about money, health, insurance and security issues when I cross that bridge.. I still have a house that I will be getting all coresppondence to and collecting rent from...

    I'm sure as I make my way around the beautiful places in Europe things will present themselves to me good or bad...I'm ready to take it easy for a while..

    Thanks again all!!

    Christian & Clare..
    FUGLYBUS II
     
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  8. TheBig1

    TheBig1 Funster Life Member

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    if you're keeping the house as a base, you will continue to exist and be liable for uk tax, also MOT and insurance will be tied to the uk as the fuglybus is on the dvla database. exporting it will open a huge can of worms as you wont get insurance etc and re-entry to the uk will cost import tax and vat

    the idilic free spirit lifestyle drifting from country to country with no tax or insurance to pay is a pipedream. although once technically possible its now a thing of the past. At least you're doing some research first before getting into the mire that would make carrying on working seem the easy option
     
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  9. billkce

    billkce Funster

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    The above is absolutely correct.

    If you have a UK address, & even better, renting it, you are basically just on extended holiday with regard to the HMRC, DVLA, DSS et al. Just tell all agencies the TRUTH about your travels & they will be fine & generally helpful.:thumb:

    If you work a bit, just pay it via self assessment.

    You are not really leaving the UK at all.

    Cheers

    Billkce
     
  10. Spottycatz

    Spottycatz Read Only Funster

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    There are two variations.
    Non domiciled and Non resident.
    Non dom means you have an address outside of the UK and do not count the UK as your home.
    Non res means you still have a home in the UK, BUT, providing you adhere to the current UK tax regulations about how much time you have spent out of the country, you 'may not' be liable for UK tax.

    I know this as I have been both. :thumb:
     
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  11. superk

    superk Read Only Funster

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  12. Parcverger

    Parcverger Funster - Campsite Owner

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    Whatever you do you are going to be taxable somewhere - that is what all tax authorities are working towards! Basically you will be taxable in the UK as they already know about you unless you settle in another country, and tax rules generally state that if you are resident in any country for 183 days (one day over six months) you are taxable in that country. There are advantages and disadvantages in all situations - for example, if you settled iin France you could register your Hymer and the Controle Technique (MOT equivalent) is required every two years and there is no road tax, but you would need a top-up medical insurance (though the treatment here is amongst the best in the world).
    Absolutely do not try to dodge paying tax - if you are ever suspected of doing so the problems you would find in having a tax inspection will convince you that it was never worth while! I'm speaking from experience - when setting up a small business I lived on capital for a while and did not draw income, and one day a tax demand for thousands of pounds dropped through the letterbox. It was totally speculative! Fortunately I had a colleague who was an accountant and worked through the time with me, but it took over two years although at the end it was worth it - they repaid over £1,000 that I was due in tax rebate! Keep every bit of income and tax information and remember they can go back six years before the current year and potentially longer if tax fraud is in the frame.
    The rent for your property in the UK is taxable in the UK anyway, and just look at the Chancellor's Autumn Statement on the subject of capital gains tax should you sell that property whilst resident abroad.
    Wherever you go have a great time!
    Bob
    www.parcverger.com
     
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  13. jimiol

    jimiol Funster

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    Good luck with you adventure Christian and Clare.
    I am in the process of buying a small campsite in Ireland. I currently live in the UK and I will keep my job in the UK for the next few months. I was not sure about taxation as I will be living in Ireland but getting an income from the UK so I spoke to my accountant who advised me that I will be taxed in the UK for my UK income and taxed in Ireland for any income we get from the campsite.
    What I was pleased to find is that both my wife and I keep our personal allowances the amount you can earn before paying tax in the UK. This will help me when I quit the day job and just get a income from a couple of holiday cottages we have in Port Isaac. One cottage in my wife's name and one in mine so in reality we will not have any tax to pay on either because the profit is likely to be less than our individual personal allowances.
    Therefore and I could be wrong but if you end up doing a bit of work and you are still a UK resident you'll be liable to UK tax but it depends how much you earn as to whether you'll have to pay any tax.
    Jim
     

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