# Canadian Expat to UK posting



## Berton M (May 22, 2014)

Hello all,
I have been offered an position as an Expat employee based in the UK. The posting is expected to last minimum of one year. Remuneration will be paid to me in US funds out of a Bahamas bank account (employee contract is through Bahamian subsidiary and governed by bahamian law). My posting will start in August 2014. This will mean that I will be residing in UK for only 5 months in 2014. I am a Canadian citizen with residence ther but am considering becoming a non-resident in Canada as a result of this job offere.

Am I still required to pay UK taxes on all income brought into the country?
What is the minimum time spent in the UK that triggers tax payment requirements to the UK?
Thank you kindly for your words of wisdom and experience.


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## Bevdeforges (Nov 16, 2007)

Well, for starters, the UK tax year runs from April 6th to April 5th rather than being in synch with the calendar year - so you'll actually be in the UK 8 months of your first tax year.

Your employer should be arranging for a visa for you, with a work permit (assuming that you'll actually be doing the work in the UK). Where they pay you is pretty much irrelevant, but generally if you're living in the UK for more than 183 days of any given tax year, you'll be considered resident for tax purposes. Probably best to check with your employer on these details, however.
Cheers,
Bev


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## Berton M (May 22, 2014)

Thanks for the quick reply.
What if I leave the UK for holidays or work in another country for enough time that puts the actual days in the UK less than 183 but still am renting a flat in the UK for more than 183 days?
Is the 183 days based on actual time in the UK?


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## Bevdeforges (Nov 16, 2007)

I'm not up on UK taxation, but the 183 days is only ever a "guideline" - it's not enshrined in law most places these days. 

Best I can do is to point you to HM Revenue and Customs site, where they have a discussion of the issue: HM Revenue & Customs: Meaning of 'residence' and how it affects your tax What makes it a bit complicated is that there are two separate notions: that of "residence" and that of "domicile" for tax purposes.

And, we'll see if we can flag down someone with a better understanding of the UK taxes.
Cheers,
Bev


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## Berton M (May 22, 2014)

Thanks for your help Bev


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## snikpoh (Nov 19, 2007)

Bevdeforges said:


> Well, for starters, the UK tax year runs from April 6th to April 5th rather than being in synch with the calendar year - so you'll actually be in the UK 8 months of your first tax year.
> 
> Your employer should be arranging for a visa for you, with a work permit (assuming that you'll actually be doing the work in the UK). Where they pay you is pretty much irrelevant, but generally if you're living in the UK for more than 183 days of any given tax year, you'll be considered resident for tax purposes. Probably best to check with your employer on these details, however.
> Cheers,
> Bev


I seem to recall that it's 90 days in the UK - I may, of course, be mistaken.

EDIT: looks like I am - I've just read that it's 183 days so it's back to school for me.


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## BBCWatcher (Dec 28, 2012)

I don't think counting days will be relevant in these circumstances. This is clearly employment in the U.K.


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## DavidMcKeegan (Aug 27, 2012)

Residency in the UK is based on several factors, the following will act as a strong guide as to whether you will be considered a UK resident or not.

*If you are in the UK and do not intend to stay for more than two years, you are a resident for the tax year if 183 or more days are spent in the UK. If you spend fewer than 183 days in the UK, you will not be considered a resident for tax purposes.

*If over the last four tax years you have spent 91 days or more on average per year in the UK, you will be considered a resident for tax purposes. You would be considered a resident for tax purposes from the date of your arrival if you intended to spend more than 91 days, on average per year, in the UK.

*If you come to the UK and expect to stay for two years or more, you are considered a tax resident from the first day that you arrive.

You should also speak to HMRC to know for certain in your situation. They can also help you determine if you will have domicile or non domicile status (likely the latter, but they will confirm).

Good luck!


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## Berton M (May 22, 2014)

Thanks David. This confirms how I was reading the HMRC guidelines as well. Is there an HMRC contact/hotline/email address for questions of this nature that you know of?

Thanks again to all who responded on this thread.


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## DavidMcKeegan (Aug 27, 2012)

I don't know of a direct number unfortunately...however this guide seems to apply to your situation quite well, and I think it will answer the majority of your questions:

http://www.hmrc.gov.uk/international/rdr3.pdf

Good luck!


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## BBCWatcher (Dec 28, 2012)

Isn't this U.K. source income, folks? I don't think you even get to the question of residency in these circumstances.


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## Bevdeforges (Nov 16, 2007)

BBCWatcher said:


> Isn't this U.K. source income, folks? I don't think you even get to the question of residency in these circumstances.


Well, you do kind of run into the residency question with the issue of what sort of visa the employer is arranging for the OP. (And if the employer isn't the one arranging the visa, then there's a whole 'nuther can of worms opening up here...)
Cheers,
Bev


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## Berton M (May 22, 2014)

The Visa will be arranged by the employer and it will be classified as a Working Visa. The employer's office has many subsideraries but their head offices are based in France and in the the Bahamas. My contract is offered out of their Bahama based office and is governed by Bahamian Law. I will be paid in US funds out of the their Bahamian bank account into an account of "my choosing". My work in the UK is classified as a "temporary posting" and not a permanent resident role. Not sure if this clears things up or not but this is how the employer has explained it to me.


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## BBCWatcher (Dec 28, 2012)

If you've got permission to work in the U.K. it's very hard to imagine why you wouldn't be subject to U.K. tax at least on that income, and work permission ordinarily is inseparable from residence. If you don't have work permission, and if you work in the U.K. despite not having permission (and beyond the very limited scope allowed without a visa), then you still owe U.K. tax and you're violating immigration laws. And if you've been granted a visa to work, you stay in the U.K., then you don't work and don't have U.K. taxable employment income, you're probably also violating immigration laws. (Your permission is for a specific purpose that you're not actually satisfying.)

The location of the party paying your compensation (the Bahamas) is completely irrelevant for these purposes. I don't know why your employer seems to think otherwise, but if they do they're wrong.

You're going to be physically in the U.K. and working, beyond visa waiver/visitor visa scope, and with permission. You're going to be subject to U.K. tax on at least that income. Unless there's some weird treaty-related exception, like a diplomatic or UN posting -- that's the only exception I can think of.


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## Berton M (May 22, 2014)

I am expected to abide by all UK taxation laws as stated in my contract. The main question is if I am not actually physically in the UK for 183 days in one taxation year am I still required to pay UK taxes. I believe this has already been answered and I will of course confirm this with the HMRC including the process/paper work to file.
I thank you all for your advice in this thread it is much appreciated.


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## BBCWatcher (Dec 28, 2012)

Quoting from HMRC: "If you're not UK resident, but work partly in the UK, you will pay UK tax on the part of your earnings allocated to your UK work."

You will owe at least some U.K. income tax simply by setting foot in the U.K. and working from there (with scope beyond what a visa waiver or visitor visa allows -- and if your employer is arranging work permission then that question is obviously well answered). It doesn't matter who pays or where they pay from.

OK, moving beyond that, the only remaining question is then how your non-U.K. income (if you have any) will be taxed in the U.K. _Then_ you get to the definitions of residence, domicile, and such. Note again carefully what HMRC says. If you're 183 days or more in the U.K., you're _definitely_ a U.K. resident and subject to U.K. income tax on your worldwide income. But 183+ days is not a requirement to be considered tax resident in the U.K. There are other circumstances involving less physical presence in the U.K. that still make you a tax resident of the U.K.

Hope that helps.


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