Remove ads

Introducing the LemonFools Personal Finance Calculators

Career break in Europe - taxes and residency implications

Financial discussion for any financial queries for Expats
Indig0
Posts: 11
Joined: May 19th, 2018, 8:58 am
Been thanked: 1 time

Career break in Europe - taxes and residency implications

#157390

Postby Indig0 » August 5th, 2018, 8:27 pm

We are planning to take some time out next year for a break from London, and I just wanted to double check with anyone here who may have done something similar if there was anything missing from our considerations.

We will be heading over to Europe at the start of Feb, for around two months in Italy, before going to Spain for another six, returning to the UK at the end of September.

My understanding is as follows:

- for the 18/19 tax year, we would just do our normal self-assessment returns as we would have been UK tax residents due to more than 183 days here
- for the 19 / 20 tax year, we would also remain UK tax residents, as by coming back at the end of September, we would then spend more than 183 days in the UK for the period and could submit the tax returns as normal in 2020

- as we would be in Spain for less than 183 days during the calendar year (as we would come back to the UK a few times during the six month period), we would not establish any residency there, and therefore there would be no additional tax obligations
- likewise in Italy, no tax obligations, due to the short amount of time in the country

Some questions:

- Do I need to amend any of the above points?
- At the start of the 19 / 20 tax year, would I still be able to make contributions to my SIPP and ISA accounts?
- Could I still continue to receive a Ltd co. directors salary and dividends from retained profits that would be paid into my UK bank account during the period I was overseas?
- Ignoring any Brexit implications for now (i.e. assuming current regulations remain in force for next year), what would be the status of our NHS entitlement while away and when we return?

youfoolishboy
2 Lemon pips
Posts: 207
Joined: November 4th, 2016, 11:35 am
Has thanked: 17 times
Been thanked: 33 times

Re: Career break in Europe - taxes and residency implications

#157787

Postby youfoolishboy » August 7th, 2018, 9:34 pm

Tax residency in the UK is also linked to other things like home, financial commitments, family etc the days are not everything so you should be fine.
This flowchart is very good.
https://home.kpmg.com/content/dam/kpmg/ ... wchart.pdf

Regards your other questions my personal opinion is
At the start of the 19 / 20 tax year, would I still be able to make contributions to my SIPP and ISA accounts? Yes
- Could I still continue to receive a Ltd co. directors salary and dividends from retained profits that would be paid into my UK bank account during the period I was overseas? Yes
- Ignoring any Brexit implications for now (i.e. assuming current regulations remain in force for next year), what would be the status of our NHS entitlement while away and when we return? Yes
This is all based on my personal knowledge and I cannot guarantee it to be right but I spend a lot of time working away so I have some experience of residency issues etc

Indig0
Posts: 11
Joined: May 19th, 2018, 8:58 am
Been thanked: 1 time

Re: Career break in Europe - taxes and residency implications

#158574

Postby Indig0 » August 10th, 2018, 3:07 pm

Thanks for that.

I've been thinking about this a bit more and am coming around to the idea that we will also continue to rent a property in the UK during our travels - it will save us having to put everything in storage, as well as providing us with a place to stay for any short trips back without the need to always stay in hotels / with family etc.

youfoolishboy
2 Lemon pips
Posts: 207
Joined: November 4th, 2016, 11:35 am
Has thanked: 17 times
Been thanked: 33 times

Re: Career break in Europe - taxes and residency implications

#158729

Postby youfoolishboy » August 11th, 2018, 12:16 pm

Have you tried phoning HMRC helpline? Its worth a try they werent very good with Turkey but EU countries they should be a bt better at.

runnygum
Posts: 47
Joined: November 4th, 2016, 9:35 pm
Has thanked: 10 times
Been thanked: 17 times

Re: Career break in Europe - taxes and residency implications

#162480

Postby runnygum » August 27th, 2018, 9:08 pm

With your rental property in the UK etc you will very likley be resident under the SRT. So might as well just file as usual.
Zero benefits unless you sever all ties.


Return to “International & Expat Investors”

Who is online

Users browsing this forum: No registered users and 1 guest