I know this has probably been done to death in the past, but does anyone know for sure what is happening concerning the tax status of expats.
Is it definately staying at zero?
Thanks for posting the link britexpat. The FT won't let you on their site to read the 1st April story without registering.
It's all bad news and it will only get worse. Tax issues are why so few Americans work independently in the region, as opposed to with an American corporation that provides lucrative tax offsets.
The rules are very fuzzy, and I think you have to actually work on those days, as opposed to simply being there on holiday or visiting family friends.
But they've also talked about clamping down on people who send their dependents back for long stints, own residential property that they then claim as a child's residence for the purpose of university fees or other benefits.
Like I said, it is all fuzzy, and I personally think purposefully so while the powers that be battle it out. I'm sure the tories don't want to change the code, but the lib dems do. Labour is probably equally conflicted.
timebandit--the laws haven't changed but some of the interpretations have changed, particularly with regard to how many days you can be in the UK without losing your expat status (The Financial Times ran an article on this on 1st April). It's now ten working days.
My guess, and this is just a theory, is that the government is purposely making the system look muddled and thus in need of reform. Expats are easy targets because they are perceived to have lots of cash, benefit from being British without paying into the system, and have the option of return to reap the benefits of others' taxes. The current financial troubles only worsen matters. I would expect to see within the next few years at least the attempt to tax expats' income in a way akin to was US citizens face--a modest exemption followed by normal income taxes.
Britexpat--Only a minority of household pay income tax in the US after exemptions and such. And with changes in the tax code, this will be the case in the UK too.
Regardless, I would think they would institute a sales tax or VAT before messing with the cumbersome, expensive, and complicated system of income tax. But I don't think they'll do that.
britexpat--what do you mean by "Also remember that most of the expatriates are on a lower earning bracket, so it would not really make financial sense"?
No chance of it here, but the UK is starting to squeeze expats, and I suspect it will get much worse over the next few years. My guess is that it will soon be similar to what Americans face.
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Thanks for posting the link britexpat. The FT won't let you on their site to read the 1st April story without registering.
It's all bad news and it will only get worse. Tax issues are why so few Americans work independently in the region, as opposed to with an American corporation that provides lucrative tax offsets.
http://www.international-adviser.com/article/expats-who-work-more-than-10-days-in-uk-may-be-liable-for-tax-hmrc
Thanks for the heads up Uranus1
The rules are very fuzzy, and I think you have to actually work on those days, as opposed to simply being there on holiday or visiting family friends.
But they've also talked about clamping down on people who send their dependents back for long stints, own residential property that they then claim as a child's residence for the purpose of university fees or other benefits.
Like I said, it is all fuzzy, and I personally think purposefully so while the powers that be battle it out. I'm sure the tories don't want to change the code, but the lib dems do. Labour is probably equally conflicted.
Blimey... 10 working days per year? So if I return home for more than 10 working days per year I am no longer an expat?
That is shocking!
timebandit--the laws haven't changed but some of the interpretations have changed, particularly with regard to how many days you can be in the UK without losing your expat status (The Financial Times ran an article on this on 1st April). It's now ten working days.
My guess, and this is just a theory, is that the government is purposely making the system look muddled and thus in need of reform. Expats are easy targets because they are perceived to have lots of cash, benefit from being British without paying into the system, and have the option of return to reap the benefits of others' taxes. The current financial troubles only worsen matters. I would expect to see within the next few years at least the attempt to tax expats' income in a way akin to was US citizens face--a modest exemption followed by normal income taxes.
Britexpat--Only a minority of household pay income tax in the US after exemptions and such. And with changes in the tax code, this will be the case in the UK too.
Regardless, I would think they would institute a sales tax or VAT before messing with the cumbersome, expensive, and complicated system of income tax. But I don't think they'll do that.
yes...
Uranus1 now you have me worried. Has something changed in the UK taxation law for expats?
britexpat--what do you mean by "Also remember that most of the expatriates are on a lower earning bracket, so it would not really make financial sense"?
Do you mean the expat labourer population?
With the current state of Qatar economy, it would be pointless to bring in taxation.
Also remember that most of the expats are on a lower earning bracket, so it would not really make financial sense..
No chance of it here, but the UK is starting to squeeze expats, and I suspect it will get much worse over the next few years. My guess is that it will soon be similar to what Americans face.
They introduced income tax in Saudi some years ago on Christmas Eve.
There were so many resignations the plan was axed on Boxing Day
Nobody can say for sure.
Fact is though, if they implement tax, there goes the reason for most people staying here. They would leave in droves .