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bigduckontax, Accountant
Category: UK Tax
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I am currently looking into working overseas. I would

Customer Question

Hello. I am currently looking into working overseas. I would continue living in the UK, employed by a Swiss company, and probably commuting to/from there 3 weeks in every 4, making the commute each week. I'd probably stay just over the border in Northern Italy. How would I deal with income taxation? Is there a better way for me to do this to minimise cost to me? My name is ***** ***** btw.
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Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able o help you with your question.

Your income would be subject to UK Income Tax in the usual way and would have to be declared annually on your self assessment tax return.

Under the Double Taxation Treaty between the UK and Switzerland any tax deducted by the Swiss authorities would be allowed as a tax credit against this liability. The treaty precludes the same income stream being taxed in both jurisdictions, but does not protect you from differences in rates of taxation.

I do hope that you find my reply of assistance.

Customer: replied 1 year ago.
Hello Keith, Thank you for your swift response. I have the following questions:1) Would that effectively mean I have to plan for paying both taxes simultaneously which would leave me out of pocket for a period of time? And if so, how often would I need to process request for credit?2) Are you able to explain to me how how I could structure my employment conditions so that I'm UK tax exempt? And any implications of doing so?Thank you in advance.Regards,
Expert:  bigduckontax replied 1 year ago.

Well Warren, to avoid UK taxation you would have to leave the UK and work elsewhere. Your current modus operandi makes you liable to UK taxation on your world wide income. You would exercise your foreign tax credits every year when you submit your annual self assessment tax return. These credits would reduce the amount of UK tax payable and, indeed, might eliminate it altogether.

If you decide to leave the UK do not forget to complete a Form P85 and send it to HMRC. On receipt that Department will classify you as non resident for the tax year after your leaving date and furthermore split the year of departure into two portions, one resident and the other non resident.

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