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  1. #1
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    Tax issues between UK and LoS

    Hi All,

    Does anyone know where I might find info regarding tax liabilities when working in England but employed by a Thai company?

    Would I have to pay personal income tax to the IR? Who could I ask?

  2. #2
    Member drskosha's Avatar
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    You always pay tax when working in the U.K for any company. Maybe wrong but I think you could start by asking them direct?

    HM Revenue & Customs: Home Page

    I worked in Thailand for an American Company and many more and paid Thailand tax so it will not be any different.

    Goodluck...

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    If you are resident in Thailand you can pay tax in Thailand rather then the UK. You need to get a Thai tax ID.

    Then again, I could be talking bollocks. William will be back in the office next week, so he'll be able to give you some proper advice.
    You cannae live wiv 'em and ye cannae fucking shoot 'em

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    I work for a UK company but I live in Thailand, I asked HMRC about tax and they said you have to pay tax in the country where the work has taken place.

    As DRs said, give them a call.

  5. #5
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    I would advise that you should talk to HMRC through their website. I have found them very helpful in the past, saved money on useless accountants and been advised that I was owed a large refund by the office I had dealings with.
    Normally, you pay tax in the country where you obtain the bulk of your income.

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    Fabian's Avatar
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    ^ Accountants are never useless.

  7. #7
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    ^what do you do Fabian?

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    Smile

    Quote Originally Posted by zedhex View Post
    Hi All,

    Does anyone know where I might find info regarding tax liabilities when working in England but employed by a Thai company?

    Would I have to pay personal income tax to the IR? Who could I ask?
    i work for a offshore drilling company in the north sea(uk),however i live in thailand am non resident in the uk and the company i work for does not have a place of buisness in the uk so i dont pay any tax or ni contributios at all and havent for the last 12 years.i dont have any property in the uk,spend less than 20 days a year in the uk which are mainly days spent at airports.
    things might be different for you if you are actually on land but i went direct to the tax office when i first stated with my employer and they told me i shouldnt have to pay any taxes,if you are honest with them they are great to deal with.best bet is to as them.

  9. #9
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    Quote Originally Posted by jizzybloke View Post
    ^what do you do Fabian?
    Take a guess.

  10. #10
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    ^ Hairdresser?

  11. #11
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    Quote Originally Posted by 3737ipod View Post
    Quote Originally Posted by zedhex View Post
    Hi All,

    Does anyone know where I might find info regarding tax liabilities when working in England but employed by a Thai company?

    Would I have to pay personal income tax to the IR? Who could I ask?
    i work for a offshore drilling company in the north sea(uk),however i live in thailand am non resident in the uk and the company i work for does not have a place of buisness in the uk so i dont pay any tax or ni contributios at all and havent for the last 12 years.i dont have any property in the uk,spend less than 20 days a year in the uk which are mainly days spent at airports.
    things might be different for you if you are actually on land but i went direct to the tax office when i first stated with my employer and they told me i shouldnt have to pay any taxes,if you are honest with them they are great to deal with.best bet is to as them.
    Now that sounds promising - thanks for the info. I just sent an email to the IR giving them all the details. As far as I can see, I will be in the same situ as you.

  12. #12
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    Quote Originally Posted by zedhex View Post

    Who could I ask?
    Contacting the Inland Revenue is a gamble. If the officer advises you incorrectly you have no recourse and still have to pay the correct taxes, regardless of what you were told.

    One of my clients was scared out of her mind recently by the account she was given of her tax status by her local tax office. Civil Servants are not obliged to advise on how to structure your arrangements in order to maximise allowances and reliefs available to you, they just listen to your current situation and advise on how you should be taxed on that basis. In this particular instance the Inland Revenue officer had not asked all the relevant questions, but then it is not as though anybody is bothered whether her advice is correct or not.

    The answer to the OP's initial question depends upon the following:

    A) Where he was born.
    B) How many days will be spent working in the UK in a complete year.
    C) The nature of the work.
    D) Where the money will be paid.
    E) To what extent B and D can be altered.


    As for 3737ipod, the UK continental shelf is designated as being within the UK and days spent on the shelf are regarded towards UK residency, but if the employer has no place of business on the mainland and you have no property there it can be a tad difficult for the Inland Revenue to collect anythng even if there is a liability. It can be a tad embarrassing, however, if you plan on returning to the UK.

    Centre 1 tax office in Glasgow are the only Inland Revenue office who really understand this and they struggle at times, especially since the continental shelf for income tax purposes is not the same as the physical continental shelf and the interpretation keeps changing. It requires an analysis of sectors and quadrants in order to determine residency.
    I see fish. They are everywhere. They don't know they are fish.

  13. #13
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    Quote Originally Posted by Thormaturge View Post
    Quote Originally Posted by zedhex View Post

    Who could I ask?
    The answer to the OP's initial question depends upon the following:

    A) Where he was born.
    B) How many days will be spent working in the UK in a complete year.
    C) The nature of the work.
    D) Where the money will be paid.
    E) To what extent B and D can be altered.

    .
    Answers:

    A: Born in England.
    B: Not more than 6 working months p.a.
    C: Software Development.
    D: Money paid to my Thai company in BKK.
    E: B and D??? whats's that?

    No residence in the UK, no offices in UK.

  14. #14
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    sunsetter's Avatar
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    once hmrc are on your back about anything they will hunt you down and chase you for the rest of your life, better off with an accountant without a doubt, well if your self employed anyway for sure

  15. #15
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    Zedhex.

    A. Shame really, but all is not lost.
    B) You need to get this under 3 months per annum.
    C) OK pity you aren't a teacher.
    D) Good, this can be really useful.
    E) You need to work on B. D is fine.

    As things stand HMRC will simply tell you that you are taxable in the UK, even if the Thai authorities deduct tax under Thai PAYE. This is true although the Thai tax can be deducted from the UK tax when you submit your Return form in the UK.

    Really you need to try to reduce your time in the UK to under three months per annum and hire a tax advisor (no, not an accountant, they fill out books and add up numbers) who knows what he is doing.

  16. #16
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    Quote Originally Posted by rubik101 View Post
    I would advise that you should talk to HMRC through their website. I have found them very helpful in the past, saved money on useless accountants and been advised that I was owed a large refund by the office I had dealings with.
    Normally, you pay tax in the country where you obtain the bulk of your income.

    It all depends on your residency status

    If you work in the UK you will have to pay tax for that money you earn, but not the money you earn out of the country IF you are non-resident in the UK. The company you work for will be responsible for deducting the tax from your wages, normally

    If you are resident in the UK, you will have to pay tax on all your income
    I have reported your post

  17. #17
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    ^
    nice try but no cigar.

  18. #18
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    ^ would you like to say why!

  19. #19
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    For a fee yes.

    Unless someone wants to pop around my pad and save me a few thousand pounds in their spare time.

    You can start by painting the lounge.

  20. #20
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    sunsetter's Avatar
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    ^yep ok what are you offering? im back in november, will paint as im always looking for something to do

  21. #21
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    Quote Originally Posted by Thormaturge View Post
    For a fee yes.

    Unless someone wants to pop around my pad and save me a few thousand pounds in their spare time.

    You can start by painting the lounge.

    nice helpful member

  22. #22
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    Fabian's Avatar
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    ^ I would not give out free advice either if it is not general but for a specific case.

    Taht's our job. I would not expect DD to build a house for free just because I am a forum member.

  23. #23
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    Quote Originally Posted by DrAndy View Post

    nice helpful member
    Yes I am -correcting incorrect tax advice given out by uninformed and unqualified forum members such as you, free of charge. People,like you, Andy, who have no clue what you are talking about, can cost people thousands of pounds and walk away scot free. If I dispense incorrect advice I can get sued into the ground.

    So, yes, I am a helpful member. Thanks for the compliment.

  24. #24
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    HMRC are funny buggers.

    They have all the rules there on their website - not too clear, but they seem understandable.

    From what I understood it was

    If you are outside of the UK for more than 187 days per year and you have not worked in the UK for that tax year then you don't pay tax.

    If you have worked one day in the UK during that tax year you are liable for the tax for that year even if you are outside of the UK for the remaining 364 days. If you haven't then you don't have to pay.

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