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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13773
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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. I plan on moving to Uk/Europe from Singapore this summer.

Resolved Question:

Hi.
I plan on moving to Uk/Europe from Singapore this summer. I will likely be working 4 days a week in Finland and 1 day per week in the UK. We plan to live in the uk, renting a property and kids going to school there. My wife and I are both EU member state citizens (Holland, Finland). Would I be tax liable in UK and if my gross base income would be 200k pounds per year, what would my income tax rate be ? Any smart ways of reducing tax burden that you would advise on ?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.

Hi

Thanks for youre question, I am Sam and I am one of the UK tax experts

Each country has its own tax rgime, and on the UK tax forum, we are only able to offer advise on the UK tax regime along with tax efficenecy advise.

Would you like to proceed on that basis?

Thanks

Sam

Customer: replied 2 years ago.
Hi Sam. Yes that is fine.
How many days do I need to be living or working UK to be taxed there ?
What would income tax level be ? Any major ways to get tax educable a, eg through travel,days or,other ?
Besides income tax, are there any other taxes I should be aware of and what level?
My estimated gross salary will be 225k gap, with annual bonus of maybe around 50k. My salary will be paid to local branch office of eu based company.
Thanks,
Alex
Expert:  Sam replied 2 years ago.

Hi Alex

Thanks for your response

If you come to live in the UK, then under the arrangement that you advsie on, you will be treated intially as a UK resident by your presence here, and with family and work.

However if this work (or downtime) sees you spending less than 91 days a year (tax year which runs from 6th April to the following 5th April) in the UK then you are able to be treated as not resident for UK tax putposes, which means that the UK will not be resposnible for your tax position (and in fact the country where you spend most of your time will be)

But as a guide for the UK tax regime, as your income will be in excess of £120,000 there will be the loss of UK tax free personal allwoances, (as for every £2 over £100,000 earned - sees a loss of £1 of personal tax allowances. As this currently see the first £10,000 of income permited to be tax free - your loss the entitlement at earnings of £120.000)

So no personal allowances

The first £31865 at 20%

Then from £31866 to £149,000 40%

Anything over £150,000 at 45%

So on £225,000 plus £50,000 bonus - your annual income will be £275,000

First £31865 x 20% = £6373

Next £118,135 x 40% = £47254

Final £125,000 at 45% = £56250

So total tax due £109877

Net Income 165123 per year

(as you will be paid from outside of the Uk there will be no UK National Insurance, but you may like to set up a voluntary arrangement - I have added a link here for you regarding this)

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

It does not list living in the UK but working abroad - but you would be considered eligable to make this contributions if you wish.

No other taxes you need to be aware of if you merely have a salary coming into the UK (if you choose to set up and live here)

The main way to reduce tax exposure to the 40% and 45% rate bands is to consider making arrangements to contribute to a pension scheme - if thee payments are made with your salary after taxation, then you can contribute up to an annual amount of £40,000 a year (or 100% of your salary whichever is the lesser) and, as you only get basic rate tax releif added into the pension plan, you then create a position of tax refund - due to your entitlment to tax releif at your highest rate.

So a pension contribution of £40,000 sees actually £48000 going into the pension pot (with the 20% tax releif) but also a tax refund due to you of £10,000 (£40,000 x 25% - which is 45% your highest rate of tax less the 20% tax releif given at source by the pension plan)

This then puts this additional £10,000 into your pocket thereby redusing the tax burden.

Your travel amy be tax deductible as wholly and exclusively in the performance of your duties, bt normally you would find that an employer covers these costs directly - or pays you compensation through an expenses claim - which would render the costs tax free again under the wholly and exclusive rule.

Let me know if you have any follow up questions, but this is the main overview to the UK tax regime andhow it would affect your cicustances

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 13773
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Hi Sam.

I have another question.

How to stock options get taxed in the uk ?

Thanks,

Alex

Expert:  Sam replied 2 years ago.

Hi Alex

Thanks for your further question - this really should be posted as a new question as per Just Answer policy, but as this is your first time on Just Answer, I shall answer on this occasion

Are these from employment through an employee share scheme OR through dividends owned personally nfrom busineses on the stock market?

Thanks

Sam

Customer: replied 2 years ago.

Hi Sam.

These are though my employer.

They would vest in 3 years time with a

Certain strike price.

Alex

Expert:  Sam replied 2 years ago.

Hi Alex

Then these will be subject to tax under he Income tax regime - so in the UK would be subject to 45% taxation. (If the employer was situated in the Uk, then the payment was just be paid through your salary and subjected to tax under the PAYE system as you are paid from a foreign employer, then you would declare this along with your normal slary, bonuses etc and it would be subject to the regime of taxses I have already advsied the rates on)

Thanks

Sam

Customer: replied 2 years ago.

Thanks Sam.

And if I were to invest my own money into stocks in the Uk, would there be a capital gains tax ?

Thanks,

Alex

Expert:  Sam replied 2 years ago.

Hi

Thanks for your further question

I have sent an additional services request for you, as this is now a furtehr new question.

Thanks

Sam

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