Nice to know...

[Asterix]

http://www.telegraph.co.uk/news/worldnews/middleea...

[mybrainhurts]

Hope we have something in place in case Alex Salmond kicks off...

[Chilli]

Brilliant, just let me sell the motor first.

[85Carrera]

I saw that. I think if I decided I needed to get out, I'd organise it myself rather than rely on the British government to do it.

Suspect this is being leaked as a pretext to taxing worldwide income (expected in the next budget, according to some people I have spoken to), so that they can say that we do get some benefits out of paying said tax.

[Asterix]

If they decided to tax worldwide then I'll leave for somewhere that has a reciprocal agreement.

Which means the hard work and grief I've been through to have set my own company up will have been for nothing

[yorky500]

85Carrera said:

I saw that. I think if I decided I needed to get out, I'd organise it myself rather than rely on the British government to do it.

Suspect this is being leaked as a pretext to taxing worldwide income (expected in the next budget, according to some people I have spoken to), so that they can say that we do get some benefits out of paying said tax.

If that is announced, I will go and claim my SA Passport and revoke British nationality (don't think you can, but worth a try) - feckers. Not getting my cash.

[mybrainhurts]

85Carrera said:

Suspect this is being leaked as a pretext to taxing worldwide income (expected in the next budget, according to some people I have spoken to), so that they can say that we do get some benefits out of paying said tax.

Unless things have changed since I was in the saddle, you are taxed on worldwide income, but you don't pay anything to HMG under double tax agreements with other countries.

[Mattt]

mybrainhurts said:

85Carrera said:

Suspect this is being leaked as a pretext to taxing worldwide income (expected in the next budget, according to some people I have spoken to), so that they can say that we do get some benefits out of paying said tax.

Unless things have changed since I was in the saddle, you are taxed on worldwide income, but you don't pay anything to HMG under double tax agreements with other countries.

Nope - only UK income, as long as you aren't resident.

[Targarama]

Why would a minority in the UAE/Middle East need to worry? I'm sure most wouldn't want to 'go home' anyway. That is unless the UK was planning on dropping some extra large nasty bombs on Iran, with resulting fallout affecting neighbouring countries. In which case the Gulf nations should be worried.

[mybrainhurts]

Mattt said:

mybrainhurts said:

85Carrera said:

Suspect this is being leaked as a pretext to taxing worldwide income (expected in the next budget, according to some people I have spoken to), so that they can say that we do get some benefits out of paying said tax.

Unless things have changed since I was in the saddle, you are taxed on worldwide income, but you don't pay anything to HMG under double tax agreements with other countries.

Nope - only UK income, as long as you aren't resident.

That's what I said.

[Mattt]

Targarama said:

Why would a minority in the UAE/Middle East need to worry? I'm sure most wouldn't want to 'go home' anyway. That is unless the UK was planning on dropping some extra large nasty bombs on Iran, with resulting fallout affecting neighbouring countries. In which case the Gulf nations should be worried.

I'm sure more UAE residents are more concerned about the impending tax situation than any war.

[Mattt]

mybrainhurts said:

Mattt said:

mybrainhurts said:

85Carrera said:

Suspect this is being leaked as a pretext to taxing worldwide income (expected in the next budget, according to some people I have spoken to), so that they can say that we do get some benefits out of paying said tax.

Unless things have changed since I was in the saddle, you are taxed on worldwide income, but you don't pay anything to HMG under double tax agreements with other countries.

Nope - only UK income, as long as you aren't resident.

That's what I said.

Is it?

Same ultimate result, but a different understanding from what I can see.

[mybrainhurts]

Mattt said:

mybrainhurts said:

Mattt said:

mybrainhurts said:

85Carrera said:

Suspect this is being leaked as a pretext to taxing worldwide income (expected in the next budget, according to some people I have spoken to), so that they can say that we do get some benefits out of paying said tax.

Unless things have changed since I was in the saddle, you are taxed on worldwide income, but you don't pay anything to HMG under double tax agreements with other countries.

Nope - only UK income, as long as you aren't resident.

That's what I said.

Is it?

Same ultimate result, but a different understanding from what I can see.

See my bold....

[Mattt]

Yes, but the issue around paying or not paying is to do with residency, not double taxation agreements.

Double taxation just reduces the tax you have to pay, if you have to pay it.

[Hitch78]

I don't think a US style world-wide tax will happen.

There are circa 5m brits living overseas and only 3m of them work - 2m of those are in managerial/professional roles i.e. roles that would command packages that would result in significant taxable income for HMRC. So the pot of taxable income exists and holds value but it isn't huge and we then need to consider that the vast majority of expats live in western economies in which they are subject to local taxation anyway. So there may be what - half a million of us lucky 'tax free' beggers at most?

The practicalities are also considerable; HMRC struggle as things are and they hold all of the information. How would they cope with the delays and inaccuracies of data produced in the Middle East?! Surely anyone not working for a UK firm could dodge them easily and, working on this premise; the cost of investigation would be huge.

The final nail is that the impact upon British overseas trade, and therefore the UK economy would be huge. Working for a FTSE 100 company I can tell you that it is remarkably difficult to get high quality candidates to consider moving out from the UK already - if you lose the tax free benefit it would be impossible and growth would be stunted as a result.

Linked to this is the potential for all of us sun-bleached expats turning up at interviews in the UK in the next few years as we inevitaly head home having lost the benefit of being overseas and seeking to gain something for this tax we are paying. This would slow recovery in the UK job market which would be political suicide for any party.

Good fodder for your average Daily Mail reader but unlikely to happen. I'm more worried about all this talk of VAT...

Edited by Hitch78 on Sunday 2nd January 07:54

[85Carrera]

Hitch78 said:

I don't think a US style world-wide tax will happen.

There are circa 5m brits living overseas and only 3m of them work - 2m of those are in managerial/professional roles i.e. roles that would command packages that would result in significant taxable income for HMRC. So the pot of taxable income exists and holds value but it isn't huge and we then need to consider that the vast majority of expats live in western economies in which they are subject to local taxation anyway. So there may be what - half a million of us lucky 'tax free' beggers at most?

The practicalities are also considerable; HMRC struggle as things are and they hold all of the information. How would they cope with the delays and inaccuracies of data produced in the Middle East?! Surely anyone not working for a UK firm could dodge them easily and, working on this premise; the cost of investigation would be huge.

The final nail is that the impact upon British overseas trade, and therefore the UK economy would be huge. Working for a FTSE 100 company I can tell you that it is remarkably difficult to get high quality candidates to consider moving out from the UK already - if you lose the tax free benefit it would be impossible and growth would be stunted as a result.

Linked to this is the potential for all of us sun-bleached expats turning up at interviews in the UK in the next few years as we inevitaly head home having lost the benefit of being overseas and seeking to gain something for this tax we are paying. This would slow recovery in the UK job market which would be political suicide for any party.

Good fodder for your average Daily Mail reader but unlikely to happen. I'm more worried about all this talk of VAT...

Edited by Hitch78 on Sunday 2nd January 07:54

Agree with all of that but apparently it is fairly likely in the next budget.

The fact that it is not a sensible move and will likely cost more to administer than will be collected is neither here nor there. It's not going to lose votes in the UK, most expats don't bother voting and it will look like the government is doing something.

Plus the Libdems, of course, will love it.

[Asterix]

I'll simply put the company into the wife's name (she's Indian) and then pay myself a measly salary and her bonuses as and when we need the cash.

[Hitch78]

Office boy Asterix!

[Asterix]

Had a chat with a financial bloke with businesses both here and in the UK and he said that other than sabre rattling it is highly unlikely to be enforced as it would be an absolute nightmare to implement and wouldn't be worth it.