How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3118
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am a UK tax paying citizen. I currently am tax registered

Resolved Question:

Hi,
I am a UK tax paying citizen. I currently am tax registered in the UK as I have a buy to let property there. I am however currently residing in Quintana Roo,Mexico. I specialise in digital art. I want to start providing online consulting sessions for artists.
My question is, because the work is online can I claim this work as a sole trader alongside my buy to let tax return?
Submitted: 7 months ago.
Category: Tax
Expert:  bigduckontax replied 7 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

You could, but it would be of little use to you as any losses made on a buy to let can only be carried forward against buy to let profits and no losses on your consulting business can be offset against buy to let profits. There are a couple of ways you could reduce your buy to let exposure:

  1. You could place your property portfolio in a limited company structure. You would then pay corporation tax (which is lower) rather than income tax on your profits. A drawback is that your mortgage options will narrow as fewer providers will lend to a company.
  2. If your spouse pays a lower rate of tax, you could transfer ownership of one or more properties to them (taking care this does not lift them into a higher tax band).

Otherwise you re in a cleft stick.

I am so sorry to have to rail on your parade.

Customer: replied 7 months ago.
Hi,
Ok that's useful. The main thing is that I wanted to pay tax in the uk and not have to get involved in the Mex tax system if poss. I have been residing in Mex for the last year and a half.
I know that there would be a problem if I was selling and shipping paintings or physical objects from Mexico. But as it's online consultation I want to keep it uk based. I believe I can then just register as a sole trader when the time comes to declare any profits?
I have a correspondence address in the uk that I use.
Expert:  bigduckontax replied 7 months ago.

International Living have the following pertinent advice on Mexican taxation for expats:

'As an expat in Mexico, the taxes you’ll pay depend in part on your situation. If you own property in Mexico you’ll have real estate taxes. If you rent out that property or own a business, have a job, or have interest-bear­ing bank accounts, you’ll owe income tax. Even if you have none of these, you’ll still pay sales tax at shops and value-added tax when you eat out at restaurants.

It’s a good idea to meet with an international tax specialist before you move to Mexico; he or she can advise you on how to best minimize your tax obligations, especially if you have significant assets in both Mexico and your home country. If you do business in Mexico, you’ll also want a good tax advi­sor there.

Income tax in Mexico:

You will owe income tax in Mexico if you hold a job, run a business, rent out a property you own, or hold an interest-bearing bank account or security in Mexico. In most cases you will need to file a Mexican tax return.'

You could register as self employed for your on line business in the UK using your accommodation address. HMRC will then send you a self assessment tax return to complete annually at the conclusion of each tax year. This return can alternatively be filed on line.

In any event there is a Double Taxation Treaty between the UK and Mexico which precludes the same income stream being taxed in both jurisdictions. This is achieved by means of tax credits, the tax paid in one country being allowed as a credit against any liablity in the other on the same income. The Treaty does not, however, protect you from differences in rates of taxation.

I do hope that you find my reply of assistance.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3118
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 7 months ago.

Thank you for your support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions