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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14217
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My domicile us in EU, I'm employed in a member state and

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Hi.
My domicile us in EU, I'm employed in a member state and work for customers there (software engineer). I've lived in Uk since September 2016 and I'm registered in Westminster. I had no income in UK.
Do I have to file self-assessment until January 31st, 2018?
Many thanks!

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

Can you advsie when you arrived to live in the Uk and what days you have had in and out of the UK and where your employer is based who pays you for this work, and does any of the work take place in the UK

I ask this as it will enable me to determine your residency status and subsequently whether you have a UK tax liability to report through self assessment to HMRC

Thanks

Sam

Customer: replied 4 months ago.
Hi.
I've arrived on August 31st, 2016.
I've travelled abroad at least 7 times from then (on average for a couple of weeks).
My employer is a company in Slovenia and it pays for my work (maintenance of accounting software). This software us being used solely by customers in Slovenia.

Hi

Then you have been in the UK for more than 183 days in the tax year 2016/2017 then at face value you will have a UK tax liability on your worldwide income - but I need to know the exact time you have spent out of the Uk with dates to advsie whether this remains to be the case

Please also advise whether you pay tax in Slovenia for this income

Thanks

Sam

Customer: replied 4 months ago.
I have been more than 183 days in UK in 2017. Do you need exact dates (that will take some time)?
All of my income is taxed in Slovenia.

HI

Not as such for the exact days but you will need them to fill in the tax return, a you will have a UK tax liability due to the time spent here this tax year 2016/2017 and as I assume you bring this money into the UK to live or spend it in the UK - this furtehr raises a liability. so yes you will need to complete self assessment for the year (due by 31/01/2018) to declare this foreign income and the foreign tax suffered (as per the double taxation agreement we have with Slovenia) so contact HMRC and ask them to send you the appropriate main return SA100 2017 and a foreign income page (SA106 2017) and an employment page (SA102 2017) and residence page (SA109 2017)

Let me know if I can assist further, or if you have all that you need it would be appreciated if you could rate me for the level of service I have provided, or click accept

Thanks

Sam

Customer: replied 4 months ago.
If I understand correctly: I opened an account in UK and transferred some of my money to it to oay for the rent and daily expenses. What kind of tax and why do I have to pay?
And another question: in order to avoid UK taxation which seems unfair to me (I don't use NHS services nor am I getting any benefits from the government): would you recommend that I unregister myself frim Westminster?

HI

Income tax - with the first £11000 a year tax free (for 2106/2017) and then the remaining income (up to £43000) at 20% and anything over at 40%

You have to pay Uk tax as you live in the UK and spent more than half the tax year living here so you are treated like any other resident and will be treated as resident for UK tax purposes (as already advised)

You cannot avoid UK taxation and why is it unfair ? You will be credited with Slovenian tax suffered so may actually owe nothing

Whether you deregister yourself from Westminster makes no difference, the fact you will continue to live in the UK means you will continue to have a UK tax position to declare

Tax does not go towards any services or benefits , the National Insurance does that, which you are not be paying unless you want to pay voluntarily

Thanks

Sam

Customer: replied 4 months ago.
Thanks.
What about taxation of capital gains (dividends)? Do they add to income and therefore I would have to pay 40% rate minus what I paid back home?
And on what basis can HMRC "track" me if I simply don't file self-assessment?
I'm sorry I know it looks like tax evading but doubling my tax work really annoys me.

HI

What have capital gains to do with this ? Dividends are not liable to capital gains they are liable to tax with the first £5000 tax free and then the rest liable at 7.5% or if this pushes you into higher rates then 22.5%

You are not paying double tax you will pay UK tax less Slovenian tax which is how it should be as you are living in this country so are treated the same as anyone else - and if you do not declare yourself then this is tax evasion and carries serious charges

Its up to you what you decide to do but you could also risk refusal to come back to the UK for the future also -

I am not obliged to help you avoid tax by telling you how they can track you as I signed the official secrets act when working for HMRC and this would be in breach of that and also my job as an accountant which is helping people to get their tax right not evade it, which I hope you can appreciate or what is the point of me running my business and helping out through Just Answer if I'm going to give people the wrong advise

I have fully answered your question and advised you why this is the way it is - I hope you will take that on board when you rate the level of service I have provided, rather than rate me as you do not like the answer.

Thanks

Sam

Customer: replied 4 months ago.
Thank you for your clarification.
It's much clearer to me now.
Best regards!

HI

Just make sure you do the right thing as the consequence are not worth the riask

Let me know if I can assist further, or, if you have all that you need, it would b appreciated if you could rate me for the level of service I have provided, or click accept

Thanks

Sam

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