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Hi, I have a potential employment offer in SGP with remuneration

Customer Question

Hi,

I have a potential employment offer in SGP with remuneration of SGD 120k pa. This could be either a permanent employment or 6 month contract.

What would be the tax implication as a UK citizen/resident? I don't want to pay any taxes here.

I have another complication - I am the director of a uk limited company that owes around £30k in taxes due to lack of contracts in london for almost 18 months in the last 30 month period.

When leaving for singapore how will this affect me in any possible way please?

Thanx
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.

Make sure that when you leave the UK that you submit a form P85 to your tax office. This can be done on line. Your tax office will treat you as non resident for the next tax year after you leave and also split the year of leaving into two parts, one resident and one non resident. This assumes that you will be undertaking permanent employment in Singapore. If you only stay six months that is an entirely a different kettle of fish and you will be liable to UK Income Tax on the salary. However, under the Double Taxation Treaty between the UK and Singapore any Singapore tax deducted or paid is allowable as a tax credit against your UK tax liability.

If your company cannot meet its tax liabilities HMRC may put it into administration. If moneys have been withdrawn to settle other creditors at the expense of the tax man then a fraudulent preference may have occurred as creditors should have been settled parri passu ie in appropriate proportions. As a director, needless to say, you should not have allowed a fraudulent preference to occur.

That is a very general run down of your personal and your company's position. A more detailed view is outside the scope of this question and should form the subject of a separate enquiry.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3614
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.
Customer: replied 2 years ago.

Thank you for your answer Keith. A better picture is to explain that I have suffered immense losses on a property sale and have supported my spouses education as a foreign student, so I also have a ridiculous amount of personal debt that's accumulated over the last 8 years. my credits so bad I'm getting turned down for jobs in London hence the idea of starting somewhere I can find a job so I can continue to pay to be able to live and repay what I owe.


 


What exactly is an administration please?


 


Having said this, if I am living in Singapore for the entire tax year, I pay Singapore taxes, lets say around 10%, do I still have to pay any to UK (let's say for example UK taxes are 30%, so the diff of 20% do I have to pay these here) due to the UK-Singapore tax treaty??

Expert:  bigduckontax replied 2 years ago.
When a company is put into administration if it is the subject of a court order for the company to be wound up (a winding up order). Its are assets distributed amongst its creditors. Any residue would then be returned to the proprietors, ie the shareholders. This last stage very rarely happens. as winding up orders nearly always occur when a company is insolvent. The company then ceases to exist.

If you go through the P85 procedure which I told you about you will effectively be classed as non resident and not liable to UK taxation from the date you leave the UK until you return, if you ever do. The Double Taxation Treaty would only affect you were you liable to UK taxation, which in your case is unlikely following the P85 procedure.

Does that clear the air?
Customer: replied 2 years ago.

Yes it does, thank you.

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance.

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