International Tax Advice for Inbound Individuals
Travelling to the UK often comes with a host of advantages including tax reprieve. Interestingly, inbound travelers and visitors wishing to hang around for a while often enjoy some exceptional tax advantages that the residents of the UK do not access. Hammersmith Chartered Accountants was established to, among other things, attend to your tax questions and guide you through your stay in the UK as an international person.
The Treasure Secrets
It is a fact that most of the people travelling to the UK often enjoy tax benefits beyond their own expectation. However, it takes a friendly hand such as Hammersmith Chartered Accountants to lead you through the right channels just so you are among the international individuals who gain from the UK tax arrangement. You must organize your tax matters in such a way that you will not be locked out of the bracket that gains. We advise that you should make prior arrangements to consult us regarding your taxes in the UK and even at home so that we help you prepare the needed documentation for tax rebates, reductions, and exceptions in the UK. There is a raft of issues and questions that you face as and a UK inbound traveller. We seek to address such issues beforehand just so you exploit the tax havens that he UK allows international individuals. The main issues that we focus on in this regard include:
- The stipulated deadlines
- The gains and income that is likely to attract taxes in the UK
- Whether you should file your returns
- How your gains and income overseas affect your tax obligations
In addition to the above concerns, you need to take a close look at the following general checklist we have developed from our knowledge and experience with the UK local and international tax system. It is meant to keep you alert and aware of what is likely to happen once you land on UK soil.
- The date when you will arrive in the UK. You must ascertain its correctness
- You should also make sure that you have the accurate date of departure from home to the UK and that from the UK
- It is also important that you make an application to get a National Insurance Number for the UK
- If you are self-employed, you need to register for it
- If you are a business person, you need to get yourself the UK registered accountant. This is the point you may want to consider the services of Hammersmith Chartered Accountants
The UK tax system Details
The UK tax system categorises tax payment into two basic classes. There is the Domicile tax status and the residency. Make sure that you confirm your domicile status before you make any move in the UK. Primarily, it is possible to live in the UK but remains domiciled elsewhere. Indeed, there are many cases when domicile tax status helps many individuals to save on taxes.
As mentioned earlier, you will either be a resident or domicile, under the UK tax system. Domicile refers to the place you permanently reside. It is, therefore, not likely that your domicile will change or keep changing. Further, it also implies that you may live in the UK for a significant period but be domiciled elsewhere. Indeed, the domicile can be correctly interpreted as the place you come from, your origin. Feel free to seek clarification from Hammersmith Chartered Accountants whenever you want to travel to the UK, or have arrived and would like to get your tax records and structures right. Our experienced staff will respond to your queries with speed. We know that time is of essence when it comes to matters taxes.
There is a good reason why knowing the domicile and residency status is important. To begin with, the policymakers in their wisdom foresaw instances when you may live in the UK but decide to return to your place of origin. If such a person makes such a move, it means that they will not be domiciled in the UK. Thus, if you take up residency in the UK but contemplate a time when you may return to your place of birth, you will be treated differently from a permanent resident of the UK. Your tax obligations in the UK will also be influenced by other factors such as
The Charge on Remittance Basis
There is a special clause that grants individuals who live in the UK but have their domicile elsewhere. People who earn foreign income or have gains of capital do not have to be charged taxes in the year of tax if they have not remitted them but meet all the requisite tax requirements. It is also important to note that individuals who have the UK as their domicile have no legal ground to utilize the remittance basis rule. Here is the breakdown of how the remittance basis works.
If you are domiciled and resident in the UK, you will be charged taxes on, both, your UK income and foreign income. On the other hand, if you are a resident but not domiciled, you will be taxed on your UK income but you have a possibility of using the remittance basis rule. For nonresident individuals, you will be taxed on your UK income but will not be subjected to the same on your foreign income.
Income and Capital Explained
The UK tax law allows the authorities to assess you on both fronts. Therefore, you will not only be charged taxes on your income but also the assets and your capital. However, as mentioned earlier, the tax regime is tiered in an elaborate way that makes sure that you only pay what you ought to pay if you have structured your taxes properly. Count on Hammersmith Chartered Accountants to place you where you belong with the taxman, to your advantage. Note that you may end up paying taxes that you would ordinarily be exempted from if you do not get your tax documents right when reporting to the tax agencies. If you are already in the UK, and even well on your way in meeting your tax obligations, feel free to share your tax concerns with us. We could help you apply for tax refunds where we establish that you are eligible.
What are some of the frequently asked questions regarding taxes and international individuals?
If my income only comes from a salary through Pay As You Earn, should I file tax returns in the UK?
Well, you need to file tax returns in the UK because your circumstances may change. It is, thus,important because your residency and domicile status will be determined with the help of your accurate and up to date filing.
How is remittance basis claimed?
The primary condition is to file your tax returns for the UK
What’s the average duration it will take me to catch up with y tax returns for the UK now that I’ve been here for a year?
At Hammersmith Chartered Accountants, we know that this is a question that bugs many people, and probably causes them a lot of mental strain. However, from our experience, the task ahead may not be as demanding as you might think. Nevertheless, feel free to contact us for further advice. We are only a click of a mouse away from your solution. We have tried our best to make it easier for you. We shall offer you a free consultation for the basics on this issue. Remember that we do not pin you down to use our services after the contact point consultation. You are free to choose from a wide array of advisers on the UK plane. We, however, believe that we are the best since few match our exposure, hands-on experience and ability to customize. Try us and judge.