Offshore for tax purposes?

[Tim Good]

I've queried this before but didn't really get to the bottom of it. On March 27th I left the UK for Norway. The boat will remain out of the UK for the current tax year and I'll travel back to the UK, not exceeding 3 months, for various commitments.

Can anyone give me a relatively simply idea whether or not, for this tax year, I'll likely be applicable for being "offshore" for tax purposes?

 

[macd]

To be considered non-resident in the UK HMRC will require you to indicate your new country of tax residence*. You seriously will not want it to be Norway (or almost anywhere else in western Europe).

* They'll require a little more proof of this than a harbour receipt.

 

[RichardS]

If you're talking about your personal tax residency/non-residency/domiciliary status, rather than that of the boat which is not my field, you would need to provide a lot more information about your sources of income and places of residency. It's a complicated issue but, in the absence of anything else, you certainly need to be resident outside the UK for the full tax year as a minimum.

Richard

 

[SteveSarabande]

Going non resident has some drawbacks,

You can't use the NHS
most UK travel insurance only work if you are UK resident

 

[Deleted member 36384]

Simply put if you have zero income from any source in the UK and you are in the UK for no more than 90 days then any income that is 100% generated outside the the UK is not subject to UK tax of that tax year i.e. it must be one full tax year, not parts of 2 tax years. However, going on holiday for a tax year is no a valid reason if you maintain a residence or any other centre of interest in the UK. It could be a valid reason if you have no centre of interests in the UK.

 

[GHA]

I've queried this before but didn't really get to the bottom of it. On March 27th I left the UK for Norway. The boat will remain out of the UK for the current tax year and I'll travel back to the UK, not exceeding 3 months, for various commitments.

Can anyone give me a relatively simply idea whether or not, for this tax year, I'll likely be applicable for being "offshore" for tax purposes?

Probably not.
https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt

And if you're not earning anything from activities abroad then not much point. As pointed out above you'll not be eligible for NHS or SSR.

To be considered non-resident in the UK HMRC will require you to indicate your new country of tax residence*.

New one on me, last time I went to talk to the revenue and as long as the non res criteria and had no earning arising in the UK they didn't care where I was, went non res again April last year and same again though I let the accountant tell them. No foreign address and non resident anywhere, last time for 5 years. No problem. No tax (Or little as it goes though a UK company PAYE)

 

[macd]

To be considered non-resident in the UK HMRC will require you to indicate your new country of tax residence*

New one on me

Personal experience. They also wanted official confirmation from the new country of tax residence. Perhaps things have changed in recent years - much else has in the world of money.

 

[GHA]

Personal experience. They also wanted official confirmation from the new country of tax residence. Perhaps things have changed in recent years - much else has in the world of money.

Might be an old one, never asked me for anything apart from tax for anything money arising in the UK. No mention in here either..

https://www.gov.uk/government/uploa...8/160803_RDR3_August2016_v2_0final_078500.pdf

Meeting the criteria is more involved than before though, if you have ties in the UK anyway. Spend less than 16 days in the UK and all is well.

"Automatic overseas tests1.4 If you meet any of the automatic overseas tests for a tax year, you areautomatically non-resident for that year. You should therefore consider thesetests first, as if you meet any one of them, you will not need to consider any ofthe other parts of the test.
First automatic overseas test1.5 You were resident in the UK for 1 or more of the 3 tax years preceding thetax year, and you spend fewer than 16 days in the UK in the tax year. If anindividual dies in the tax year this test does not apply."

 

[KellysEye]

If you live in a country then you are liable for tax in that country or if spending time in the UK UK taxes. There are only two ways to avoid income tax one is be resident in a country that has no income tax such as Bermuda, Monaco, the Bahamas, Andorra and the United Arab Emirates (UAE). The other is if you have a yacht and keep moving about then after four years you can claim not resident and not ordinarily resident, we did that and only paid tax on two rental properties. To avoid tax on savings move your account offshore, but not any bank in Europe, there is now a 30% witholding tax so look elsewhere. So the answer to your question is no.

 

[pyrojames]

You will have to be resident somewhere else, with no ties to the UK, e.g. House, family etc. Even then, the TO, will consider you liable for tax if you have spent 17 of the last 20 years in the U.K. The this gets less if you have not been resident in the UK for any significant period up to now.

 

[Little Dorrit]

Ask Sir Philip Greens wife.

 

[GHA]

The other is if you have a yacht and keep moving about then after four years you can claim not resident and not ordinarily resident,.

Which, as you were told the last time you posted this, is not the case.
.
Not even any research need to see that, just look at the inland revenue quote a few inches above your post..

"First automatic overseas test1.5 You were resident in the UK for 1 or more of the 3 tax years preceding the tax year, and you spend fewer than 16 days in the UK in the tax year."

https://www.gov.uk/government/upload...nal_078500.pdf

 

[GHA]

You will have to be resident somewhere else, ....

That's not actually the case, though no doubt frowned upon. I did it for years a while ago and again now, not resident in any country. The inland revenue aren't bothered, though they might get more interested if they think you're just having a big long holiday to avoid some capitol gains or something.

I suspect they are somewhat similar to Mediterranean port officials - generally quite nice people and helpful but will come after you with little mercy if they think you're taking the mickey.

 

[Deleted member 36384]

I have colleagues who live in the UK, married, home, single address, bank accounts etc; they work abroad month on / off. All their income is from abroad and they have a work address abroad. They are only in the UK for less than 90 days, the balance of time off is spent abroad, on holiday, mostly France, Holland and usually in a caravan. By all definitions they are on holiday and technically not allowed to claim these as days not resident. They declare the days as not in the UK, they do not mention why they are out of the UK. They do not pay income tax in the UK and accountants complete their tax returns.

Some of you know that I also work month on / off, income earned abroad, live in the UK. I don't do this, I pay income tax on all money earned abroad because I transfer all my salary, every month, back to the UK, that's my choice.

It is obvious to me that being resident in the UK does not mean that you have to pay UK income tax, unless my colleagues are fibbing, but I doubt it.

 

[jordanbasset]

When working in the UAE I was non-tax resident in the UK but I still had to pay tax on my UK earned income(not on my UAE Income), which at the time I thought was right and still do.