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bigduckontax
bigduckontax, Accountant
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I'm moving to Denmark, and I'm going to be working remotely

Resolved Question:

I'm moving to Denmark, and I'm going to be working remotely for a company in England. I'm also earning money from the sale of a company that's being paid in instalments, and I'm going to be renting out a flat that I own in England. Will I have to pay Danish taxes on any of the money earned?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

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

Firstly, when you quit these shores be sure to complete a Form P85 and send it to HMRC. On receipt that Department will classify you as non resident for the tax year following your date of departure and furthermore split the leaving year into two portions, one resident and one non resident. Once non resident you can spend up to 91 days in the UK in any one tax year without breaching your non resident status.

Your net flat rental will be taxed in the UK, but remember as an EEA citizen you are entitled to your Personal Allowance to offset this. You will have to make annual self assessment income tax returns to HMRC.

The Danish Tax and SocialSecurity system is extremely complex and if you spend more than six months in Denmark in any one tax year you are liable to Danish taxation on your world wide income. There is a Double Taxation Convention between the UK and Denmark 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 tax credit against any liability in the other. The Convention does not, however, protect you from differences in rates of taxation and as Denmark has notoriously high personal taxation you may well find yourself being taxed there on the difference.

I do hope that you have found my reply of assistance.

Expert:  bigduckontax replied 1 year ago.

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

Firstly, when you quit these shores be sure to complete a Form P85 and send it to HMRC. On receipt that Department will classify you as non resident for the tax year following your date of departure and furthermore split the leaving year into two portions, one resident and one non resident. Once non resident you can spend up to 91 days in the UK in any one tax year without breaching your non resident status. The P85 is available on the web and can be filed on line.

Your net flat rental will be taxed in the UK, but remember as an EEA citizen you are entitled to your Personal Allowance to offset this. You will have to make annual self assessment income tax returns to HMRC.

The Danish Tax and SocialSecurity system is extremely complex and if you spend more than six months in Denmark in any one tax year you are liable to Danish taxation on your world wide income. There is a Double Taxation Convention between the UK and Denmark 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 tax credit against any liability in the other. The Convention does not, however, protect you from differences in rates of taxation and as Denmark has notoriously high personal taxation you may well find yourself being taxed there on the difference.

I do hope that you have found my reply of assistance.

bigduckontax and 2 other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.

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