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info@commonwealthcontractors.comOver the last few years the HM Revenue and Customs have really clamped down on Contractors who choose to structure their income via ‘offshore’ solution providers with the introduction of BN66.
Category Archives: Tax For Contractors & Expats
Strictly, you are UK tax resident for the whole of a tax year when you are UK resident for any part of it. But, if you leave or come to the UK partway through a tax year, HMRC operates a concession under which the year may be split (Extra-Statutory Concession A11).
While day-counting alone may not disprove UK tax residence, it is certainly important for anyone who wants to be considered non-resident for tax purposes.
While you will always be classed as UK resident if you are in the country for 183 days or more during a tax year, avoiding the 183 day threshold, and even avoiding the 90 days / year averaged over 4 years threshold, is not enough to prove non-residence.
If you are a foreign national and you are coming to the UK to work on Contracts it is important to understand how the UK Taxation System will affect you if you.
If you are a UK National (and are UK Domiciled) it is important to understand how the UK Taxation System will affect you if you are considering leaving the UK / working abroad.
If you are thinking about (1) Coming to the UK to work as professional Contractor, OR (2) Planning to work as a professional Contractor abroad, you need to know how UK Tax Residence and Domicile will affect what you pay.
An IR35 Investigation is a Contractor’s worst nightmare. The HM Revenue and Customs may take months going over company records, assessing service contracts, speaking to client representatives and going in detail through financial transactions.
If a contract you’re working on is considered to be Inside IR35 you must pay full Income Tax and Class 1 National Insurance deductions (Employers and Employees) on salary payments made throughout the year.
If your Contract is Outside IR35 you have freedom to claim many more business related expenses than if your contract were Inside IR35. Claiming expenses is a great way to reduce your Income Tax & National Insurance liability.