Living abroad

[Your Fight Site]

I touched on this in the Covid thread, but thought it’s probably worth creating a new thread to discuss this specifically.

Basically, I’m fed up with the UK and the government, I’m on a rolling monthly contract with my rent and was planning on buying a house back in March, so decided may as well use this flexibility and look at moving abroad. Portugal is high on the list.

My main question is around taxation. I’m currently employed full time (and working from home) for a UK company. Does any one have experience in living abroad whilst working for a UK country and what that would mean in regards to tax? Would I still get taxed through PAYE and pay tax in the UK as I do now? Or would I have to start paying tax in say, Portugal if I moved there, and therefore be a bit of a pain in the arse for my employer?

[Devon Malcolm]

@David might be able to help you.

Also, doesn't @simonworden live in Thailand or something?

[David]

30 minutes ago, Your Fight Site said:

My main question is around taxation. I’m currently employed full time (and working from home) for a UK company. Does any one have experience in living abroad whilst working for a UK country and what that would mean in regards to tax? Would I still get taxed through PAYE and pay tax in the UK as I do now? Or would I have to start paying tax in say, Portugal if I moved there, and therefore be a bit of a pain in the arse for my employer?

It depends where you wish to go and for how long.

If you want to move overseas then you'll have to stop paying tax in the UK and pay it in your new country of residence. If you were to take "a break" from the UK for a few months, and work remotely in an AirBNB in, say, Portugal, then you could continue as you are and no one would be any wiser.

[SaitoRyo]

I live in the Czech Republic and work full-time from home for a UK company and encountered this problem as well. 

I went to the Czech tax/financial offices in Prague and asked around, I asked independent accountants, read some old legislature and my employer asked their accountant, too. 

In the end it was basically 'you need to pay tax in one country at least' and left to me to choose. 

I chose the Czech Republic as I have permanent residency here (and plan to live here long-term) and it made more sense in relation to health insurance and so on. 

Like others have said, I think if you're planning on actually moving away and living somewhere for longer than a few months, you should and probably will have to pay tax in your new country of residence. 

[David]

11 minutes ago, SaitoRyo said:

I live in the Czech Republic and work full-time from home for a UK company and encountered this problem as well. 

I went to the Czech tax/financial offices in Prague and asked around, I asked independent accountants, read some old legislature and my employer asked their accountant, too. 

In the end it was basically 'you need to pay tax in one country at least' and left to me to choose. 

I chose the Czech Republic as I have permanent residency here (and plan to live here long-term) and it made more sense in relation to health insurance and so on. 

Like others have said, I think if you're planning on actually moving away and living somewhere for longer than a few months, you should and probably will have to pay tax in your new country of residence. 

Yeah, it seems very few nations have gotten a handle on remote workers as yet. Hopefully that changes with recent developments, but it is a serious ball ache.

I also think, just to add more confusion to the mix, that after you've been out of the UK for a certain period in any given 12 month rolling time frame you're barred from paying tax here? I could be wrong, but I'm sure I was told that when I was in Spain.

[Lorne Malvo]

25 minutes ago, Devon Malcolm said:

Also, doesn't @simonworden live in Thailand or something?

Nah, I think he would've mentioned it if that were the case.

[AndiRush]

I seen something the other day about Barbados offering 2 year remote worker visas for Brits wanting out due to covid. 

 

UPDATE

Scrap that, complete lies from myself, it was Bermuda offering the visas. Here's the link

https://www.gotobermuda.com/workfrombermuda?gclid=CjwKCAjwwab7BRBAEiwAapqpTDIX4cWrZBicTz4I41SkqFsdJV7YJudzrtyXzcdUlmi052VHwz6WuxoCHVEQAvD_BwE

Edited September 22, 2020 by AndiRush
wrong country

[ElCece]

I've never lived abroad but I do live with a broad. 

[Keith Houchen]

This thread might be out of date regarding info but there might be some help 

 

[Devon Malcolm]

1 hour ago, ElCece said:

I've never lived abroad but I do live with a broad. 

3 hours ago, Devon Malcolm said:

While you're around, popular opinion states that the downvotes option should be returned forthwith, sir.

[ElCece]

Deserved that one, especially as I stole it from my 89 year old Grandad. 

Edited September 22, 2020 by ElCece

[Your Fight Site]

1 hour ago, AndiRush said:

I seen something the other day about Barbados offering 2 year remote worker visas for Brits wanting out due to covid. 

 

UPDATE

Scrap that, complete lies from myself, it was Bermuda offering the visas. Here's the link

https://www.gotobermuda.com/workfrombermuda?gclid=CjwKCAjwwab7BRBAEiwAapqpTDIX4cWrZBicTz4I41SkqFsdJV7YJudzrtyXzcdUlmi052VHwz6WuxoCHVEQAvD_BwE

Yeah, pretty sure Barbados as well as Bermuda are offering “Welcome Stamps”, which seem to be year-long visas.

Edited September 22, 2020 by Your Fight Site

[Tommy!]

I quit my contract and had a new one with the German company arm and was paid into a German bank by their payroll and didn't pay any UK tax except for the outbound and inbound split years. However I couldn't spend more than 90 days in the UK each tax year or more than 30 days if I was working here during the visit (even for the German company) or I'd be liable here too and have to pay UK tax as well as German tax. In that event I would have needed to claim a capped allowance against the bill with HMRC. 

Others kept their UK contact and UK payroll and worked 4 or 5 days in Germany and, if I remember correctly, had to pay more tax and claim back a chunk of the UK tax taken at the end of the year. As far as everyone was concerned they were liable for tax, however they were also considering resident in Germany for there tax system. 

The only slight difficulty is with what HMRC consider "working in the UK" or "resident for the purpose of tax", there is plenty of guidance but it's a dry read. 

On the inbound / outbound split year I claimed a relief against the UK tax with the aforementioned capped allowance, and depending on how much you make and what the allowances are at the time it covers some of the double catch but not all. 

It does differ country to country though, for now countries in the EU should all have the same agreement with the UK regarding income tax and movement for work but that's bound to change, and outside the UK it varies by country and agreement. 

 

[King Coconut]

5 minutes ago, Tommy! said:

for now countries in the EU should all have the same agreement with the UK regarding income tax and movement for work but that's bound to change

Bound to change is quite the understatement. 

[simonworden]

15 hours ago, Lorne Malvo said:

Nah, I think he would've mentioned it if that were the case.

I've been good an haven't mentioned it for 6 months as promised, and I won't directly talk about it here either!

 

I think people have answered better than I can if you are looking at European countries but I do know that in Italy in my industry most employers pay you to a UK bank account and pay your tax national insurance there so at least, how it works elsewhere I have no idea.