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Living in the UK, potential tax problem?

(12 Posts)
SilverHawk Wed 29-Jun-16 18:56:36

Living in the UK but all salary (taxed) is earned abroad. It's a new situation.
I have read the government 'help' but it's not very clear.
Has anybody been in this situation?

tribpot Wed 29-Jun-16 18:58:19

Is there tax equalisation between where the money is earned and the UK?

StopShoutingAtYourBrother Wed 29-Jun-16 19:00:21

Is this a private arrangement or something your company is supporting?

SilverHawk Wed 29-Jun-16 19:14:49

The money is earned in Euros. Remaining on a foreign payroll. The move is for personal reasons and as it is an international company there will be a chance to move to the UK office.

SilverHawk Wed 29-Jun-16 19:16:36

I should clarify, the move to the UK as a resident is preceding the move by the company. It could even be as long as a year sad

IceMaiden73 Thu 30-Jun-16 05:46:40

If you are here more than 6 months the company would need to set up a uk payroll i believe

This is a specialist area so you need to find someone to help you

StopShoutingAtYourBrother Sat 02-Jul-16 15:44:58

It doesn't really matter about the currency. Your personal residency status, the location of where your duties are performed earning these monies and your personal banking arrangements will all drive your uk personal tax and social security arrangements and your employers withholding and other obligations. The position also needs to be considered together with your position back in your home country.

As the other poster says this is a complex area and you and your employer would be well advised to get specialist advice up front.

StopShoutingAtYourBrother Sat 02-Jul-16 15:51:17

Op - to be a bit more specific as I realise my advice was a bit corporate. I think you are taxable here in uk in full. This should be paid via uk payroll by your employer. You may or may not still be taxable in your home country - assuming your working in the uk then your home country should give a credit for the uk taxes. Depending on your particular circumstances this is likely to mean you end up only paying tax in uk but there will be various steps to work through to reach this point.

StopShoutingAtYourBrother Sat 02-Jul-16 15:53:24

If you still work overseas and you've set up your bank accounts in a very specific way your uk tax bill may be lower. Are you going to be here permanently or temporary? This will drive your social security and pension arrangements,

SilverHawk Sat 02-Jul-16 21:30:11

Thanks for all of the help. It's all very vague wrt the switching of the European (area of) payroll to the United Kingdom payroll. Certain areas are known for dragging their feet. However, as it will be half way through the tax year when the residence changes, will that help? It will surely be sorted by April 2017.

Gotheftosleep Sun 03-Jul-16 08:55:30

this really isn't an easy question to answer as there are so many individual factors to be taken into account but basically:

1 - if you are uk resident and domicile you are taxable on your worldwide income.
2- you can take a foreign tax credit for overseas taxes paid
3 - if you are working in the UK then your employer needs to operate PAYE from day 1, along with NIC, unless you've remained in the overseas social security scheme and have an exemption from NIC. Doesn't matter if the company is based overseas.

As I said, it is complex so you should consider taking professional advice geared to your personal situation.

StopShoutingAtYourBrother Sun 03-Jul-16 16:59:54

Op - what gotheftosleep is absolutely right.

I strongly suggest you and your employer get yourself some professional advice otherwise you're going to find yourself getting in an expensive and complicated mess with the tax and social security offices in both countries

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