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Sam
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I'm a dual citizen (New Zealand + UK) and have been travelling

Resolved Question:

Hi, I'm a dual citizen (New Zealand + UK) and have been travelling abroad for the last couple of years. I've just started taking on some contract work (yacht delivery, internationally) and want to know how to minimize my tax. Income would be about £25k before tax from contracts lasting between a week and 6 months.
I have bank accounts in NZ, Singapore and the UK which I could get paid into and I don't spend much time in any of these countries.
Any advice appreciated.
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi
Thanks for your question
Your tax position will initially arise in the country from which you are paid, and then ultimately fall into the country you reside in most.
Can you advise further on both these factors and whether you have owned property, if so in which country is this situated.
Thanks
Sam
Customer: replied 1 year ago.

Thanks for getting back to me.

The company I contract is based in the UK. I don't really reside anywhere at the moment. I have been backpacking for the last 2 years. I don't have any property. My mailing addresses are for a friends flat in London and my parents house in NZ.

I believe I'm not a tax resident of anywhere. Is that possible? If so how do I make the most of it?

Expert:  Sam replied 1 year ago.
Hi
Thanks for your response
You cannot make the most of not having one place that you could call your home - we all have to pay tax somewhere (sadly)
Then you will an employee of this UK company and they will charge you UK tax and National insurance, unless you can prove that you are indeed not resident in the UK
You do this by ensuring that you spend no more than 90 days a year in the UK none of which are for work purposes (which may be an issue if you take charge of a yacht in UK shores)
So you would need to complete form P85 regarding your comings and goings in the UK so HMRC can establish what they feel is a residency position for you, and this WILL take into account the fact you do not seem to stay anywhere for long.
So the bot***** *****ne is HMRC will probably remain your tax overseer as
1) You advise you do hold dual residency once of which is the UK
2) The employer is based in the UK (and they should be employing you as an employee as they do not fit the remit to allow you to be freelance/self employed)
3) no other country can be called your residence, unless you happen to spend more than 90 days elsewhere each tax year.
I wish I could advise what you hoped to hear(no tax as no set residence) but then I am sure you can appreciate I would not be doing my job properly if I advised that!
Thanks and let me know if you have any follow up questions on this matter, however, it would be appreciated if you could rate the level of service I gave provided, (or click accept) as this ensures Just Answer credit me for my time
Sam
Customer: replied 1 year ago.

Thanks Sam,

I'm not sure what you mean by the following part.

2) The employer is based in the UK (and they should be employing you as an employee as they do not fit the remit to allow you to be freelance/self employed)

I can't find a way to attach one of my contracts to this chat but it says:

THIS AGREEMENT is for crewing as Relief Skipper, on a self-employed basis, on board the Client’s vessel,

and on behalf of <omitted> under the terms and conditions below: (Job No: <omitted> )

The way the company works is that they find the customers who need the boats moved. They find volunteer crew and then contract a skipper to move the boat. Does your comment still hold?

Expert:  Sam replied 1 year ago.
Hi Paul
Thanks for your response and the additional information
The contract means nothing - its how you are engaged that determines your employment status - you are taking a boat that belongs to the company and taking this to the client - you make no profit or loss, do not provide this service to other companies, and do not use your own tools to undertake this - this makes you an employee not self employed
See link here re UK employment status legislation (this is just the basic overview but I would be happy to provide a more in depth link if needed)
https://www.gov.uk/employment-status/worker
You will be a worker - so employed.(so yes my advise still stands)
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13777
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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