Employment Income - based abroad?

MonicaGMonicaG Just JoinedPosts: 2Registered
in Tax
Would someone living and working abroad (only visiting UK occassionally to see family) be classed as a non-domicile? And if so, do they need to register as such with HMRC? His wages are paid from Caymen Inlands (if that makes any difference). Not aware currently if HIS bank account is based in UK or France, where his employer is moored

Comments

  • badhombrebadhombre Milton Keynes Posts: 11AAT Student, AATQB, AAT Licensed Bookkeeper
    This is a highly complex area of personal tax. Suggest you review this:

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/547118/160803_RDR3_August2016_v2_0final_078500.pdf

    and ask your client(?) to maintain a detailed diary for their movement in and out of the UK between 6 April and following year 5 April to enable you/ then to determine their residency status each tax year. Its possible to be considered UK domicile (say if born in the UK or the UK is the destination the taxpayer ultimately expects to return to in the future) but non-tax resident. Generally - following the flow chart - if one is gainfully employed outside of the UK and only visits for pleasure and keeps that to below 91 days presence per annum (based on your stating the taxpayer is employed abroad) they would be treated as a visitor as opposed to a worker, thus not be liable to UK taxes on their worldwide income.

    Before you make a final decision it is definitely worthwhile contacting HMRC to seek their interpretation based on the facts you are aware of, currently and going forward.
  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderPosts: 1,296Moderator, MAAT, AAT Licensed Accountant
    @MonicaG

    You may be getting confused between residency and domicile.
    As @badhombre has pointed out the residency status is now determined by the statutory residence test. So first find our if your client (?) is UK resident. Domicile is determined by the place where your client's father was born and will only be in point if your client is UK resident.
    badhombre
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