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: 4344
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I m a UK Resident came under Tier 2 ICT VISA 6 years ago

Resolved Question:

Hi, I m a UK Resident came under Tier 2 ICT VISA 6 years ago employed by a UK based company. I m paying my income tax as PAYE method as a UK resident all this years. In 2018 due to expansion of the business i may be travelling to overseas and in particular to Hong Kong and may be out of the UK for more than 6 months, my question is what options do i have in tax duties to UK HMRC if i am out of the country more than 6 months. Can i pay a reduced tax to UK, and pay tax in Hong Kong instead? My wife and children would be in UK when i travel for work. Thank You
Submitted: 3 months ago.
Category: Tax
Expert:  bigduckontax replied 3 months ago.

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

I am sorry to say very few. If you reside in the UK for more than 183 days in the tax year you are liable for UK taxation on your world wide income. You will be perilously close to this and will inevitably be taxed as before. Hong Kong does have an income tax regime, but in comparison with the UK rates are low. There is also a double Taxation Treaty in force which precludes the same income stream being taxed in both jurisdictions. Any tax deducted in HK will be allowed as a tax credit against your UK liability on the same income stream.

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

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 3 months ago.
Thank you Keith. Pls allow to rephrase your point so i could clearly capture your tax advice as follows, correct me if i m wrong in my interpretation.
1. If i work more than 183 in HK, and opt to pay HK tax which is lower that UK tax rate, I would still need to pay the remaining untaxed in HK in UK am i right? I m on 40% tax bracket at the moment in UK payroll, so if I pay 15% tax in HK, i would still need to still pay 25% tax of my income in UK. is this statement correct? Thank You
Expert:  bigduckontax replied 3 months ago.

Correct, you would use the tax credit from the Treaty provisions to reduce your UK liability.

Thank you for your support.