If you are coming to live or work in the UK, we can help you organise your affairs to minimise the tax you pay. The UK tax system for expats is complex and how you are taxed in the UK depends on your domicile status, how long you intend to stay in the UK, where you are paid (UK or offshore) and where your income and investments are located.
Here are some important points about coming to the UK and some tips which can help you to reduce your tax bill:
UK tax status – Form P86 which was previously used to inform HMRC that you have come to the UK has now been withdrawn from use. It is therefore up to an individual coming to the UK to consider whether it is more beneficial for them to be taxed on the remittance basis or the arising basis of taxation and request a self assessment tax return from HM Revenue & Customs if required.
We can help you work out which basis of taxation is better for your individual circumstances and complete your self assessment tax return to correctly report your basis of taxation.
Avoiding tax on non-UK workdays – If you come to the UK after 6 April 2013 and are not domiciled in the UK and you work outside the UK even for one day, we can help you avoid UK tax on the income relating to any days you spend working outside the UK for up to 3 years from your arrival in the UK. To take advantage of this tax relief, the income that relates to your non-UK workdays must be paid offshore (outside the UK) and you must retain this income outside of the UK. It is also important to consider whether you need to open a new bank account on arrival in the UK (and nominate it) to enable you to claim the relief.
The rules regarding overseas workday relief changed along with the introduction of the Statutory Residence Test but if you came to the UK before 6 April 2013 with the intention of staying in the UK for less than 3 years you can also benefit from overseas workday relief under the old rules.
Tax Free Benefits – If your employer provides you with benefits such as accommodation, a subsistence allowance, and reimburses your travel costs, it is possible to be provided with these benefits tax free if you come to the UK for less than two years. Without this tax relief, you would be liable to tax on the cost of these items to your employer.
Tax 4 Expats will claim these tax reliefs on your behalf where applicable – if you think that you were entitled to any of these relief’s in previous years but have not claimed them we can make a claim to HM Revenue & Customs to get this tax back for you.
Avoiding tax on offshore investments – If you are non UK domiciled (i.e. do not intend to remain permanently in the UK), you can avoid UK tax on income and capital gains from offshore assets (assets situated outside the UK). To take advantage of this tax relief, you must avoid bringing income from your offshore investments into the UK. You also need to ensure that you do not settle credit card purchases made in the UK with funds from your offshore investments. These rules are complex and advice should always be obtained in this area to avoid triggering tax charges in the UK. Ideally this planning should be performed before you arrive in the UK, so contact us now to find out how we can assist you.
Remitting money to the UK – If you need to bring offshore funds into the UK for example for living expenses or maybe to buy a property in the UK this needs planning to ensure that you don’t trigger an avoidable UK tax liability.
We can help you organise your foreign investments so that you can bring money into the UK without creating a UK tax charge.
Buying UK property – Buying a property in the UK to live in or buying to let has important tax consequences. There is a valuable relief from capital gains tax for properties classed as your principal private residence. With planning it may be possible to utilise this relief to avoid capital gains tax on the future sale of your property.
Tax Return preparation and submission – Tax 4 Expats aims to offer a friendly and efficient tax return service. We prepare your tax return (claiming all available tax relief’s to minimise your tax liability) and provide a calculation of your tax liability. We send you your tax return in pdf format and file it electronically with HM Revenue & Customs on your behalf. If you prefer paper copies these can also be provided.
HM Revenue & Customs Enquiries – Each year HM Revenue & Customs selects some tax returns to enquire into. If you are selected for this, we will liase with HM Revenue & Customs on your behalf, attend any meetings with them and deal with any correspondence from them. We aim to make it as stress free for you as possible.