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bigduckontax
bigduckontax, Accountant
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I am a uk national and MD of a uk subsidiary of a US owned

Resolved Question:

I am a uk national and MD of a uk subsidiary of a US owned corporation. From September 1st I will be made group MD of 3 regions , UK, Scandinavia and Benelux. I will need to spend equal time between the 3 regions and can live in either 3 regions.
From a tax optimisation perspective what is the best path of action ?
Thank you
Neil Murphy
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 11 months ago.

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

You may be interested to hear that the UK i now considered by many to be a tax haven in its own right. Both Scandinavia and the Benelux states impose notoriously high levels of individual taxation so you would be well advised, particularly as you are an UK citizen, to opt to be taxed in your home country.

I do hope that I have been able to show you a way forward in this matter.

Customer: replied 11 months ago.
Thank youWhat about living in Ireland and spending up to 120 days in the UK?
Expert:  bigduckontax replied 11 months ago.

If you decide to become resident in Ireland then you would have to advise HMRC of your move by means of a Form P85. Once classified as non resident you can spend up to 91 days in the UK in any one tax year without breaching your non resident status.

Irish taxation is levied at the following rates [source: Revenue, Irish Tax and Customs]:

'Single, Widowed or a Surviving Civil Partner without qualifying children€33,800 @ 20%, Balance @ 40%€33,800 @ 20%, Balance @ 40%

Single, Widowed or a Surviving Civil Partner qualifying for Single Person Child Carer Credit€37,800 @ 20%, Balance @ 40%€37,800 @ 20%, Balance @ 40%

Married or in a Civil Partnership - (one Spouse or Civil Partner with income)€42,800 @ 20%, Balance @ 40%€42,800 @ 20%, Balance @ 40%

Married or in a Civil Partnership - (both Spouses or Civil Partners with income)€42,800 @ 20% (with an increase of €24,800 max), Balance @ 40%€42,800 @ 20% (with an increase of €24,800 max), Balance @ 40%'

A quick check indicates that Ireland's tax rates exceed the UKs. It looks as though choosing the UK is the better option Neil.

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Expert:  bigduckontax replied 11 months ago.

Thank you for your excellent support.

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