| Echidna wrote: |
| James can I ask why you say the days of hanging around in Thailand on your time off between jobs on a tourist visa are coming to an end??TAXFREE.
Whats to stop anyone from doing that tax free for the rest of their lives, as long as they are working outside the UK, ie Asia what does that have to do with the Inland Revenue, nothing from the way I see it as long as days out of the UK are satisfied, and no ties..ie house,wife, etc.. |
Most of what I said was about the relevance of the OP. Those Brits living overseas working in the UK on day rate as 'self employed' workers. It's this 'self employed' aspect that HMRC wants to eradicate offshore as they see it as a tax revenue leak IMHO.
However it's nothing to do with how you see it. It will be all to do with how the authorities in your country of citizenship see it!
The reason I suggest this is, it is my understanding that currently USA, Canadian, Australian and New Zealand Citizens/permanent residents living/working overseas already have to declare worldwide income and submit a tax return to their relevant tax authorities in their country of citizenship/residence, no matter where they work/live. (For the benefit of this thread.. someone correct me if I am wrong so that we get the story straight).
It's clear that back in the UK, HMRC are desperately trying close all the tax revenue drains/loopholes. One of those is that the UK currently does not require UK ex-pats to submit a tax return if they have no ties to the UK. IMHO that might change and it won't require too much of a shift in tax law for that to happen.
I see it potentially going like this. The law is adjusted so that all UK citizens, no matter where they reside or work, have to submit a tax return to HMRC. If they are entitled to not pay tax to HMRC (maybe because they pay tax elsewhere within a country that has a reciprocal tax agreement in place with the UK) then all well and good. They will also likely want to see proof of residency somewhere plus proof that you submit a tax return in your country of residence. If it is shown that no tax is being paid anywhere on worldwide income then HMRC will no doubt want a chunk of it!
I am a UK citizen living in Canada as a permanent resident. However as a British Citizen it would come as no surprise to me if the above took effect. If it didi I'd simply have my accountant fill out the required return, I'd sign it and they's send it off to HMRC. Because I pay taxes on all worldwide income here in Canada and this country has a reciprocal tax agreement with the UK then that should satisfy HMRC and they'll have no demands. (not guaranteed though).
No point in arguing the toss as to whether that is any of HMRC's business or not where you live and work. If it's UK law and you are a UK citizen then you will either comply or be nailed for not complying.
The tax noose is tightening. Those that haven't' noticed have been too pissed, too high for too long or don't give and shit and think it will not effect them.
Remember, this is a discussion between offshore types, so this is just my opinion and nothing else. It's not based on tax law or anything I know that others might not.
Discussing this type of thing is a good thing as it helps others understand the bigger picture. If you have a view contrary to mine feel free to post it!