International tax advice for non-domicile tax issues

Living and working in today’s highly-connected business world, the need for international tax advice and the issue of non-domicile tax has increased significantly.

If you generate income across a number of different countries, this will present you with some issues around payment of taxes. A typical example would be where you generate income from rental properties abroad or realise income from investments internationally. Complexities arise because not only your tax liabilities will be payable in line with the rules of the country you are operating in, but also whether a ‘double taxation treaty’ exists between that country and the UK.

Understanding your tax liabilities in the UK is already challenging for some. When you throw a tax system (or even a different language) into the mix, it could be a recipe for disaster.

However, if you allow us to manage your non-domicile, international tax issues, you need not worry about any of them as we will take care of them all.

International tax advice – What can we do to help?

One of the main issues you will face is in determining where the liable tax is to be paid. If your main tax residency is in the UK, meaning you have spent 183 or more days in the UK in the last tax year, then your ‘global’ income is declared and taxed here. However, you must also understand the rules of the country where the income has originated and your obligations and liabilities to that tax authority.

The UK government has dual taxation treaties in place with more than 130 countries. This means you’ll most likely still have to file your tax return in the country where income was earned, under the dual tax treaty with that country, even though you’ll actually pay the tax through your own self assessment return in the UK.

Everybody’s situation is different, whether the income is due to rental property, pensions, or certain types of employment income. You may have to pay the tax in the foreign country and claim it back from the UK. How much you get back depends on the tax agreement the UK has with that country, as taxation rates vary. In many cases though, you won’t have to pay the other authority and will instead pay HMRC.

HMRC offers guidance on overseas income, double taxation, and how income will be treated in the UK here. However, if you aren’t sure if the respective tax treaty will cover you or if you need to apply for relief with HMRC, please give our international tax advisors a call.

Our international tax experts work to ensure that the correct amount of tax owed in the relevant country, under their rules, is calculated and confirm where that should be paid and how.

Once the right amount of tax has been calculated, you need to understand the country’s time frames and limits to ensure that you do not end up having to pay penalties as a result of late payment.

Berley Chartered Accountants is up-to-date with international tax rules wherever your business is operating and you can rely on us to give you the facts about the amount you owe but also to ensure that your business is utilising all tax allowances that are available in the relevant country. This means you can be sure that you are paying only what you owe.

As mentioned, there will be implications on the tax payable in the UK, and your payments abroad will need to be factored into your tax returns here. We can ensure a connected approach across all of your tax liabilities, whether here or abroad, so contact us now to discuss your situation with us.

We can provide specific international tax advice when needed or assist you in achieving full compliance with overseas jurisdictions. As well as guiding you through the complexities of different overseas tax systems, we’ll also ensure that you pay the minimum amount in all countries at the right time through the correct channels.

We may even have some suggestions on how to restructure your affairs to reduce your liability further.

By speaking to Berley’s overseas tax experts you can put your mind at ease. Our team has the knowledge and experience to help you manage this important aspect of your overseas operations.

Contact us today

Your non-domicile, international tax situation is an important issue to deal with as soon as possible, so if you have tax liabilities abroad and you would like to discuss your options then please do get in touch.

You can call us on 020 7636 9094, email us on info@berley.co.uk or complete our Free Online Enquiry and one of our experienced non-domicile, international tax advice experts will be in touch.