Q: I am setting up a business from abroad. Will I be subject to UK income tax on these earnings?
Jan 22 2010
Answered by: Clive Lewis Ask a question
There are a number of criteria which will determine whether you are resident, ordinarily resident and/or domiciled in the UK and therefore subject to UK taxation. It will largely depend upon how many days and/or part of a day you spend in the UK. If you own or rent a property in the UK as well as run a business with UK customers, this may be sufficient to make to resident here. So you need to keep a detailed record of the days and part days you are in the UK each week/month and be prepared to justify to HMRC that you are not resident in the UK. Other factors such as having a UK bank account might also contribute to being taxed in the UK.
This area of taxation can become very complicated and a full appreciation of all the facts of your situation is required. Once you have a track record of the number of days each week/month you spend in the UK I suggest you seek the advice of a chartered accountant as to whether you fall within the rules for UK taxation.
Comments