If you are leaving the UK for your ideal work or for remote working, your tax situation might not be as simple as you would have thought.
Remote working has allowed many to live the live they want where they want. Working from your ideal location is one of its perks. However, when working for other countries you may become resident or lose residency status in the UK.
For example if you were an employee working remotely in the UK you might get a thought to work from your favourite location or try other countries to live in. This changes the way you pay tax.
If you have a situation where you think that you may need to pay tax in two countries, its best to get in touch with us, accountant for expatriates in London. Advice taken before acting would save you a lot in taxes and other troubles.
The Expatriates/Expats may have multiple residences in different countries. This could happen because of ties with that country or time spent there.
for example, Wayne lives in the UK for 7 months and than moves to his home country Switzerland and lives there for 6 months before return back to the UK. Wayne has his main residence in Switzerland and his family and financial affairs are there. He may be tax resident in both countries and needs a full review of his tax situation.
Many Expats living in the UK have rental income and other income sources that are taxable in the UK depending on various rules.
Case Study
Anna lives and works in the UK for almost 2 years. She is originally from Germany and she have two rental properties in Germany and she rents a room in her UK home.
The rental income is taxable in the UK and must be reported on the UK tax return. The rental income will be taxable in Germany and reported there as well.
Don’t worry you won’t be taxed twice, we will help you sort that out.
Remote working has become very popular after Covid. Peoples choose to work from locations they love to live in weather abroad or in the UK.
Regardless of how attractive working remotely might be, it has created many tax issues which need to be considered before taking upon such an opportunity.
If you live in multiple countries, your tax situation might be a little complex and need tax advice from expat accountant.
If you are considering leaving the UK and may stay overseas for six months or more before returning to the UK; its best to contact us and get expatriate tax advice.
For example, you have a contract to work overseas for 12 months and you like to work there. It’s best to know your situation and save tax that you might be entitled to.
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