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Tax muddle!!?

5 replies

NameChangedForThisQ · 15/05/2018 23:22

I'm hoping someone wise will come along to advise.

I moved from the UK to another country a couple of years ago. I transferred my address on my UK current account to the new country. I still had a UK remote job I paid tax in UK and new country for. I also began to freelance and I paid tax in new country for this, the money going in my UK account. A little after I changed my address I got a letter from UK bank asking if I will be a tax payer in new country instead. I did not reply.

Now I am becoming a 'digital nomad' I.e. I will be traveling and not staying in any country for longer than 3-6 months. By the rules I can work out I will have no residence for tax purposes. I am by the way a citizen of both the UK and second country, in which non-residents do not pay tax.

In second country tax year runs Jan to Dec. I will leave in July.

What do I have to do? Who do I have to pay tax to and when? Is there anyone I need to notify? I feel in a complete muddle to be honest!

OP posts:
NameChangedForThisQ · 15/05/2018 23:23

I forgot to mention I no longer have the UK job.

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BettyBaggins · 15/05/2018 23:27

I dont have answers but have been a digital nomad and sorting tax was a pickle! Returning to UK much harder than expected. Lack of previous residential addresses for that period has been annoying. But, I will be doing it again and hope theres some advice shared here! Good luck op.

NameChangedForThisQ · 15/05/2018 23:42

Thanks Betty. Derailing my own thread Grin what countries did you enjoy?

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pacer142 · 16/05/2018 11:56

Are you sure you're not "tax resident" in a country despite physically moving around? I.e. you can still be resident for tax in the UK even if you're not physically in the UK if you havn't satisfied the formal tests for becoming non resident. If you are UK domiciled and previously UK resident, you have to "permanently" leave the UK to become non UK resident for tax, eg one of the "tests" is that you must sell your UK home (to prove you're not intending to return). Other countries may have similar rules. It all depends on your history of domicile and tax residence, not just being "out of the country" for a certain number of months. I'd suggest you get proper professional advice from a specialist tax expert.

NameChangedForThisQ · 16/05/2018 13:50

I will pacer. After posting this I had a good long look at tax rules in both countries. It seems I will have no tax obligations but I will double check with a professional here. By the way you don't have to sell your UK home, it's about the number days you live in it. I found this out yesterday Grin

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