Purely out of interest does anyone know

If you have a Uk based pension and then live in LOS are
you still liable for Income Tax and Nat Insurance ?

Austen

if u're not working, then u're not liable for national insurance. so far is income tax is concerned, it is taxed according to the rules for earned income, i.e. basic rate is 22% and not the 20% that applies to bank deposits (allowance is made for the time that u are living in thailand if it is over a certain amount, but the uk authorities might deduct a withholding tax if thailand doesn't have a double-taxation agreement with the uk).

if u choose to live permanently in some countries, such as australia, then ur uk state pension will be paid at the rate that applies when u last leave the uk and will never be increased. unsure about thailand.

ian.

Thanks Ian

I thought as much

from

http://www.direct.gov.uk/MoneyTaxAndBenefits/PensionsAn...=10026714&chk=ldcw7e

If you are a non-resident your tax position depends on whether you live in a country with a ‘double taxation agreement’ with the UK. This means you won’t have to pay UK tax on your State Pension, but it will be taxable in the country where you live.

But this dosen't seem to apply to Thailand

Austen

Just to ask a hypothetical question...What's the tax position if you live 6 months out of the country and worked here the other 6?

Could you say you were domiciled abroad? Or how do you gain "foreign" status for tax reasons?


Nick

As far as I understand it , if you are in the UK for a maximum of 90 days in a given tax year, you can earn what you want during that period and pay no tax.

u're closer to the mark, bryn. 90 days is the critical period, although work done in the uk is still subject to paye.

http://www.direct.gov.uk/MoneyTaxAndBenefits/Taxes/Leav...=10026136&chk=TVlSLi

if u live for 91 days or more in the uk every year, then u'll always be considered resident and therefore must pay uk tax on ur uk earnings, with overseas earnings also taken into account (subject to double-taxation reliefs). if ur tax residence never changes from the uk, then neither will ur uk tax domicile, so u'll also have to pay inheritance tax when u die.

effectively, u would have to be out of the uk for at least nine months in at least one tax year to start making any difference at all to ur uk tax residency.

ian.

quote:

if u live for 91 days or more in the uk every year, then u'll always be considered resident and therefore must pay uk tax on ur uk earnings, w

IAN
Thats not the case its 183 days in any given tax year. The 91 days is the average over a 4 year period from your source.

Once the revenue accept that your none resident you no longer have to fill in UK tax returns etc.

ash

I was under the impression that you are liable to UK tax on UK private pensions wherever you live because the money you put into these pension is untaxed - i.e. the tax is deferred until you draw a pension.

quote:

Originally posted by ash:

quote:

if u live for 91 days or more in the uk every year, then u'll always be considered resident and therefore must pay uk tax on ur uk earnings, w

IAN
Thats not the case its 183 days in any given tax year. The 91 days is the average over a 4 year period from your source.

Once the revenue accept that your none resident you no longer have to fill in UK tax returns etc.

ash

ash

i agree with u on the 183-day rule if u are not ordinarily resident in the uk (i'm guessing that this is ur position).

if u start from being ordinarily uk resident, then i think it's impossible to attain non-resident status unless u have at least one tax year where u spend less than 91 days in the uk (see paragraph 2.10 for an example of the average calculation).

http://www.hmrc.gov.uk/pdfs/ir20.htm#part1

ian.