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Director living abroad and travel allowances

Director living abroad and travel allowances

I have a director who is classed as a uk tax paying resident, his company's registered office is in the uk but he lives in turkey most of the time

His main business is based in various differant seas and usually for 2 weeks at a time

When he travels to a differant workplace can he claim the travel expenses (flights) as he would normally travel from turkey not the uk?

 Also on his company details it says his address is uk should that be changed to turkey?

Any help please 


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06th Dec 2012 12:24

Yes, I can understand why he avoids Turkish bureaucracy...

Turkish bureaucracy and invoicing is notoriously labyrinthine, so I can understand his rationale for doing this through a UK company. The flights could not be deemed ordinary commuting, so would be allowable.

I would also ask why he is still UK resident if he lives in Turkey most of the time.

Wouldn't it be better to go the whole hog and declare UK non-residence to HMRC (P85), apply for an "NT" tax code and leave him to deal with income tax in Turkey as a resident.

As a resident of Turkey, their fiscal authority are legally entitled to their bite of the cherry.

In fact by doing this aren't you enabling Turkish tax evasion?


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to Kaylee100
06th Dec 2012 16:16

Thanks for the information, really helpful.

Its only been this year that he has stayed mostly in the uk. 

If he did become a non uk resident would the company have to change aswell or does that work differantly? he is the only director

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06th Dec 2012 16:17

Sorry meant to say mostly in turkey

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06th Dec 2012 17:08

All about residence


abacusah wrote:
If he did become a non uk resident would the company have to change as well or does that work differently? he is the only director
 If your client has become tax resident under Turkish tax law then the company may become effectively tax resident in Turkey as well if certain conditions are met. I am not a specialist in this area, I recommend you seek professional advice from someone with the necessary expertise as he may well be in breach if he has become tax resident in Turkey and has not made full declaration there. The UK / Turkey Double Tax Treaty might mitigate some of the worst effects of double taxation:http://www.hmrc.gov.uk/taxtreaties/in-force/turkey-dtc.pdf


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