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Double taxation?

If I were to work abroad on a 2 year contract and got paid in that country and paid its taxes, do I need to pay UK PAYE and NIC?
Pardeep Ghatahora

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By admin
01st Mar 2001 20:08

Breaking residency
The most simple way of avoiding UK taxation is to ensure that you break residency. Put simply, you must be in overseas employment for at least one full UK tax year and visits back to the UK not exceed 183 days in any one year or 90 days on average for the period of absence (in this instance).

Even should you remain taxed in the UK, they may be facility to relieve the income in the UK if you are not of UK domiciled.

The host country is also important - there may be double tax agreements to rely on, and totalisation agreements may allow you to remain subject to NI and not host country payments.

As correctly stated below, NI would remain payable for the first 52 weeks if it was a UK employer, notwithstanding exsistence of totalisation/ social security agreements.

As you will by now appreciate this is a complex area and professional advice is advised.

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28th Feb 2001 21:50

Just to clarify
Pop's answer may give the wrong impression unintentionally.

If your employer has a UK Base, you will be liable to NI- even if the head office is overseas.

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By admin
28th Feb 2001 19:38

Who is your employer?
and where U perform your duties can have different implications.

Generally, if U R away 4 a whole tax year then U R treated as non resident and liable to tax only on UK income.

Is your employer foreign? R U non-domiciled?

Re NI, generally, if your employer is GB based, then Class 1 NI is due 4 the first 52 weeks of overseas employment.

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