UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
UK company, headquartered in the US. I have been in the job since May 2012. No work in Switzerland, this is purely for tax efficiency. I presume that I would have to change my UK contract in some way? Or can I just decide to base myself in Switzerland & declare myself non-resident for tax in the UK? FYI, I was in Paris for 4 years (2008-2012) & Singapore (2000-2008)
I asked about your residency status in the tax years to 2012 as this can affect the number of days you can spend in the UK (the first and second automatic overseas tests) but I've gone ahead and answered your question in any event.
The government introduced a statutory residence test with effect from 6 April 2013 and you should refer to the guidance note here as part of my answer. To establish your residence, you follow the process outlined in paragraph 1.2 of the guidance note.If you spend 183 days or more in the UK in a tax year, you will be resident in the UK for tax purposes. If you don't, you then have to establish whether you are automatically non-UK resident for a tax year by following the tests in paragraphs 1.4 to 1.7. If you meet one of those tests, you will be treated as automatically non-UK resident and don't need to go any further. The bare minimum that you need to achieve in order to avoid UK tax on your salary is that you need to be non-UK resident for a full tax year (6 April to 5 April). If you don't meet any of the three automatic overseas tests then you need to consider the automatic UK tests in paragraphs 1.22 to 1.36 to see if you are automatically UK resident for tax purposes. If you don't meet any of the automatic overseas or automatic UK tests then you need to consider the sufficient ties tests from paragraph 1.42. See the table at paragraph 1.45. The number of UK ties you have dictates the number of days you can spend in the UK.I hope this helps but let me know if you have any further questions.