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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Hi, Im writing on behalf of my brother who has provided the

Customer Question

Hi, I'm writing on behalf of my brother who has provided the following description:
To know: I am 39.
I am an Italian citizen with italian passport
i lived in Italy till the end of 2010.
In 2011 i lived in Indonesia, with a resident Visa, but as I declared to my company i was living in Italy my salary was taxed in Italy.
In 2012 i lived in Dubai with a resident Visa, but for the same reasons my salary was declared in Italy.
My contract in Dubai expired on February 23rd 2013 and then I came back to Italy.

Then, from April 08th May 27th i have been in Singapore again for work.

By beginning of June 2013 i have decided to move my residence in London and live with my brother. All my personal belongings are now in London.
I've nothing in Italy. No phone contract, no car or motorbike, etc.
I have only got two bank accounts.

On July 13rd i brought all things in London and elected that city as my residence.
I have declared to Italy through the AIRE (italian association for foreign residents) that all my belongings are in London.

Since June 14th, my company (which is an Italian company) has offered me a contract based in Singapore.

Then technically i put in stand-by my italian contract (as per Italian law) and i signed the new contract with an entity in Singapore (which is an operative company PTE in registered in Singapore) from June 16th till June 16th 2014.

With this contract i have got a Singaporean employment pass (EP1).

My salary is paid totally from this Singaporean Company which transfer my monthly salary to my UK bank account.

As far as i know I can be considered as NOT DOM in the UK and I should not be elected to pay any taxation in the UK (if not for some income got over there).

Am i correct ? Is the any issue if my company is transferring my monthly salary in the UK bank account?

Kind Regards
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.

Hi

 

Thanks for your question


Where is work (employment duties) for the oversees employer performed, in London or elsewhere?

 

Thanks


Sam

 

 

Customer: replied 3 years ago.
Hi Sam, thanks for your quick reply. The work is performed in Singapore.
Expert:  Sam replied 3 years ago.

Hi

 

If the work is performed in Singapore, then how can be living as a resident in the UK, what time will he spend in the UK between now and 16 June 2014, so how often will he visit the UK, and how long overall does he plan to spend in the UK (as things currently are)

 

Thanks

 

Sam

Customer: replied 3 years ago.

Hi,


as far as I've understood there are different ways of being resident in the UK, which doesn't mean you have to live in the country. He doesn't know how long overall he'll spend in the UK.


So, let's say he does not meet the requirements to be resident in the UK, where does he have to pay taxes? What about the non-dom status I mentioned in my previous message? I've read something about it and it seems to me it could apply to him.


 


Thanks

Expert:  Sam replied 3 years ago.

Hi

 

Yes you do have to live in a country to be deemed ordinarily resident. And That's what I need to establish. That's before I can even look at the Non Dom aspects

So please advise

1) After his arrival in the UK in June 2013, how long did he stay until he left for Singapore

2) What visits does he envisage making back to the UK between now and 05/04/2014.

 

 

Thanks


Sam

 

 

Customer: replied 3 years ago.

Thanks, now I've understood.


Answers to your questions:


1)He stayed 2 weeks;


2)Not more than 3-4 times, for few days each time.


 


Thanks

Expert:  Sam replied 3 years ago.

Hi

 

Thanks for your response

 

Then he is at this time not treated as resident in the UK at all, but will be treated as resident in Singapore, where he actually lives and works.

So there will be no tax liability in the UK, unless, this position changes, and it would be prudent to review the situation as to his plans after June 2014, which may also affect the position right back to June 2013.

So without knowing what his plans are after June 2014 (or at least his intentions) then I cannot clarify whether he can be treated as not resident and therefore not liable to UK tax.

But I will also advise that IF the position (after June 2014) sees your brother having been treated as resident from the time he arrived in the UK then he cannot claim Non Dom. He can only claim Non Dom is NONE of the income comes into the UK.

 

So to recap

 

1) His arrival in the UK 2 weeks prior to this oversees employment saw him as being resident from the day he arrived

2) His taking up this employment abroad would initially see him treated as not resident, but to treated as not resident (so that he is not liable to UK tax) his employment contract abroad has to last more than a full tax year (so beyond 05/04/2015) However, this is on the assumption that he will return to live in the UK, after this employment ends. At this time his contract only lasts until June 2014, so were he to return to the UK at that time, he would be treated as UK resident throughout the period from June 2013 to June 2014, and liable to tax on this income from abroad (if any has been remitted to the UK

3) But for the time being, he will be liable to any form of taxation that exists in Singapore, as he is within their tax jurisdiction. And you will have to seek advise in Singapore or tax advise (as we do not offer other countries tax advise for Singapore on any of the Just Answer forums)

Thanks

 

Sam

 

 

 

Thanks


Sam

 

 

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