Living and Working Abroad
One of the perceived benefits for expatriates living and working abroad, is the expectation of a tax-free, or near tax-free lifestyle. However, you must consider your absence from the UK carefully, especially if you plan to return at some point in the future, as some income and capital gains earned outside the UK for less than 5 years could still become subject to tax on your return.
If you are living outside the UK, your liability to UK Tax will be affected by your tax residence. You should begin to plan your finances before you leave, but even if you have been away from the UK for some time, you may still need to consider changes which have taken place during your absence and whether they affect you.
These may include:
• Your local filing obligations
Through our network of contacts and range of professional working relationships, we can often help to put you in touch with local advisers to guide you.
• If you retain any UK source income
You will still need to file a UK Tax Return after you have left, and you may also remain taxable on employment income earned while you were UK resident even if it is paid to you after you have left the UK.
• Establishing the UK treatment of earnings paid under the laws of a foreign country.
• Rental income you receive from letting your home or homes when you move abroad.
The agent (or tenant if there is no agent) is supposed to deduct 20% tax from the rent for the year in which the rent is paid and pay it to the HMRC on your behalf. However if no tax is due you can reclaim it. We can help you to reduce this burden by assisting you to obtain authority from HMRC so no tax need be deducted at source, and with any tax due to be paid via the self-assessment tax return.
Our expert team can assist you with the smooth transaction to living and working abroad.