Taxation

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  1. #1

    Join Date
    Aug 2003
    Posts
    101

    Question Taxation

    can anyone recommend a good tax adviser? I obviously want to pay no tax at all but I know this can't be avoided - however I would like to minimise my tax payments both here and abroad.

    I am employed by a UK firm as a UK employee - so my salary is paid in GBP. A part of my salary is paid locally......

    How to minimise ????


  2. #2

    Join Date
    Jan 2003
    Location
    Shatin
    Posts
    122

    Just about to reply when I saw Paul beat me to it. The simple answer is that you would pay tax on earnings where they arise. If you are paid in UK you would pay UK tax, like wise with Hong Kong derived earnings.

    Of course it does get more complicated depending how long you have been out of the country, how long you spend when you return and what your company has set up back in UK.

    If you want to talk to a good tax lawyer, we are having Robin Crimble from Hakim Fry over from UK to give a talk about UK tax and UK property. Date is 13 November at 6:30 in our office in Central. If you are interested let me know and I will book a place for you.


  3. #3

    Join Date
    Apr 2003
    Posts
    12,384

    Would recommend you have someone in your HR department (or yourself) read this.

    Tax efficient housing - avoiding the common pitfalls (FinanceAsia.Com)

    PWC Tax Update This has a good case study of how rental payments can be used (and cannot be used) for tax purposes.


  4. #4

    Join Date
    Jan 2003
    Location
    Shatin
    Posts
    122

    Paul, agree that you are taxed where you are earning and therefore with your case you would not be liable for UK tax. Just wanted to make the point that it can be a grey area unless your company has set things up correctly and it does depend upon how long you will be out of the country and how often you will return. As long as you are out of UK for more than 183 days in one year and an average of 91 days over a 4 year period you will not be liable for UK tax (except on income derived in UK such as from property)

    If you are still doing work in UK and deriving income from that work then you may be liable for UK tax. If you are over in Hong Kong full time then you would only pay tax here at a much lower rate than UK.

    Basically if you work and derive an income from a country, that is where you will be liable to pay tax but individual cases may differ, especially if your salary is split with some paid in UK and some in Hong Kong which will start to make things complicated.

    The tax man will make sure he gets his cut one way on the other As we both agree, best to talk to a tax expert and make sure that everything has been set up with you company back in UK, you have declared your self as a non-resident for tax purposes and you are not breaking any laws.

    See http://www.inlandrevenue.gov.uk/menus/non-residents.htm and http://www.inlandrevenue.gov.uk/pdfs/ir20.htm for loads more information


  5. #5

    Join Date
    Jul 2005
    Posts
    10

    Hi, I am looking for someone to help me with the submission of Profit Tax soon and pse advise who I can contact. Is it better to use an auditing company but my company is new and not so much details required for the tax submission but wish to do it right without any mistakes.