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  • flasyb
  • Hero of Waygookistan

    • 1901

    • November 30, 2010, 12:10:03 pm
    • South Korea
Re: UK/English Tax Q&A
« Reply #100 on: June 30, 2012, 02:25:09 pm »
What about if you've been in the UK during a tax year but only on holiday and didn't work, claim any benefits or get a bus pass etc? Does that count or are you still overseas for tax purposes? How about if you return in the summer for a holiday before;

a) returning to Korea
b) going off to another country
c) going 'traveling'

If in that summer you don't sign on or work are you still classified as overseas for tax purposes?

http://www.hmrc.gov.uk/cnr/faqs_general.htm#2nr

Quote
Q2. When I go to live or work abroad, will I continue to pay UK tax?
A2. If you remain treated as resident in the UK for UK tax purposes, normally you will be taxable on your income arising in the UK and overseas. If you are treated as resident and pay tax outside the UK HMRC can give appropriate credit for any tax paid abroad.

If you become treated as non-resident, you will normally only be taxable on your income arising in the UK.

Q3. In what circumstances would I become non-resident?
A3. Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if:

your absence and employment from the UK covers a complete tax year (that is 6 April to 5 April)
you spend less than 183 days in the UK during the tax year
your visits to the UK do not average 91 days or more a tax year over a maximum of four years
From 6 April 2008, days when you are in the UK at the end of the day, that is midnight, are normally counted as days spent in the UK.
In a time of universal deceit, telling the truth is a revolutionary act.

We are not "guests" in Korea. Korea didn't invite us over for Pimms in the garden. We are paid employees.


  • robvandan
  • Veteran

    • 173

    • June 17, 2011, 05:54:23 am
    • Seoul, Korea.
Re: UK/English Tax Q&A
« Reply #101 on: August 01, 2012, 05:53:18 pm »
I initially wrote a letter to HMRC about 4 weeks before I left for Korea. Got a call from them and the letter arrived a few days before I left.

I asked about the whole situation regarding tax, and the letter means exemption from Korean Tax for the first two years.

Also the website states this;

Q3. In what circumstances would I become non-resident?
A3. Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if:

your absence and employment from the UK covers a complete tax year (that is 6 April to 5 April)
you spend less than 183 days in the UK during the tax year
your visits to the UK do not average 91 days or more a tax year over a maximum of four years
From 6 April 2008, days when you are in the UK at the end of the day, that is midnight, are normally counted as days spent in the UK.

>> Seeing as the tax year starts in April, and I left in August, that means (non-resident), which means no UK TAX either.

I also had this confirmed by an accountant.

Even if your leaving in March, your earnings would only be taxed for around 1 month, and with our actual salary not being at all that high, may even drop into the lowest tax band.

But either way, don't worry you should be fine!!! Hope this is of help to you!
"Difference is, I walked out a winner. That's my key to success."


  • col89
  • Adventurer

    • 45

    • September 30, 2011, 02:24:31 pm
Re: UK/English Tax Q&A
« Reply #102 on: August 10, 2012, 07:00:43 pm »
All this talk about UK taxes and I can't find a thing (on the entire internet) about Irish citizens and taxation!

Has anyone got some concrete information about Irish teachers?


Re: UK/English Tax Q&A
« Reply #103 on: February 05, 2013, 10:56:22 am »
I read this entire thread.

Twice.

I still don't understand though.

I've been in Korea since mid-August 2012 and haven't paid any tax out of my wages.  I figure the end of the tax year has come and gone in Korea and I'm still not paying anything.  I don't intend to go back to the UK until August-October 2014 after which I will have been out of the country for around 27 months.

What should I do?  I'm going back into education after this point.

I've literally done no paperwork for anything primarily because I don't have to deal with student loan paperwork until April of this year.

Advice?  Should I get the residency form and hand it in or not?  So confused. >_<  I had expected to be hit by Korean tax this month but my pay cheque was higher than ever with a lack of deductions for school meals etc.


  • Topcat
  • Waygookin

    • 12

    • March 22, 2012, 08:54:17 pm
    • Jinhae South Korea
Re: UK/English Tax Q&A
« Reply #104 on: February 08, 2013, 12:28:45 pm »
Hey! I've read the thread and there is some great advice here! Can anyone confirm if what i've written below is correct and i've understood the tax situation?

I came to Korea 15th November 2011 and i am now 3 months into my new second year contract. I never applied for a certificate of residency thinking that i would just pay here becuase its cheeper not realising the 'tax free two years bonus'. Doh!

Now my school say i owe 300,000 in taxes and need a certifcate of residency to avoid paying it. However i'm not sure if i will extend for another year which means i MIGHT leave this November 2013 which means i will of not have been away for a full tax year when i applied for the certificate and thus still a UK resident.

Shall i just bite the bullet and pay the taxes? Seems like for me its too little too late :cry:


  • lotte world
  • The Legend

    • 2272

    • August 22, 2011, 09:00:38 pm
    more
Re: UK/English Tax Q&A
« Reply #105 on: February 08, 2013, 12:44:58 pm »
Does anyone actually read their contract these days?

Pay or don't pay.  I couldn't care less.


Re: UK/English Tax Q&A
« Reply #106 on: February 08, 2013, 01:29:31 pm »
Hey! I've read the thread and there is some great advice here! Can anyone confirm if what i've written below is correct and i've understood the tax situation?

I came to Korea 15th November 2011 and i am now 3 months into my new second year contract. I never applied for a certificate of residency thinking that i would just pay here becuase its cheeper not realising the 'tax free two years bonus'. Doh!

Now my school say i owe 300,000 in taxes and need a certifcate of residency to avoid paying it. However i'm not sure if i will extend for another year which means i MIGHT leave this November 2013 which means i will of not have been away for a full tax year when i applied for the certificate and thus still a UK resident.

Shall i just bite the bullet and pay the taxes? Seems like for me its too little too late :cry:

I'm still not 100% sure if claiming the "2 year bonus" will make you fully liable for UK taxes at UK rate.  The wording I've read implies that possibility so I've been happy to pay Korean taxes to avoid that risk. 

I think I've heard that US citizens have a loophole that means they don't pay taxes in either country for the two years, but couldn't link to the information as it was irrelevant to me.  But in most situations it makes sense that one country or the other will expect you to pay tax. 

Note to self, this year make more debit card purchases than cash ones to try and get a discount...


  • flasyb
  • Hero of Waygookistan

    • 1901

    • November 30, 2010, 12:10:03 pm
    • South Korea
Re: UK/English Tax Q&A
« Reply #107 on: February 08, 2013, 03:06:59 pm »
@ Topcat

It doesn't matter what you do, you won't be paying taxes in the UK on foreign income unless you have a house/kids etc in the UK.

The certificate of residence is more of a bureaucratic thing to satisfy the Korean system.

The UK has a double taxation treaty with Korea. You won't pay two sets of taxes on the same income unless you have other interests as mentioned above (kids and suchlike require state money - schools, doctors etc - so by rights you should pay tax for them). If you don't have these other interests, then you won't be liable for tax on your Korean earnings.

If you return to the UK and get a job in the UK, you will have to pay taxes - BUT ONLY ON THE MONEY YOU EARN WHILST IN THE UK. The UK taxman won't be hitting you up for your Korean income. So if you start work in November, you will be straight onto PAYE (Pay As You Earn - the UK system of tax for most employees) from November onwards.

You can always call the UK tax office and find out yourself. Internet forum people aren't always the most reliable.  :evil:

Personally, I just paid the tax in Korea because I agree with taxation and because it was a relatively small amount. I live in Australia now and I pay tax here. I wouldn't expect the UK taxman to be chasing me for my Australian or Korean earnings any time soon.
In a time of universal deceit, telling the truth is a revolutionary act.

We are not "guests" in Korea. Korea didn't invite us over for Pimms in the garden. We are paid employees.


  • lectrotek
  • Adventurer

    • 50

    • June 14, 2011, 07:25:51 pm
    • Bupyeong
Re: UK/English Tax Q&A
« Reply #108 on: February 14, 2013, 08:47:01 am »
Just a word of warning - SELF ASSESSMENT

a couple of months ago, my folks at home forwarded me a bit of post that had been lying around unopened for a few weeks.

It was HMRC notifying me that I was being charged a daily penalty for late filing of a 2010-2011 tax return. This hit me like a sock full of wet sand, having never filled in a tax return before and having no idea how to complete the thing referring to 2 whole years ago.

Anyway, in my haste to placate them and stop the penalty, I managed to fill in the return incorrectly. The upshot was that I was lumped with a bill of about 1000quid. On the plus side, when I pointed out my circumstances (living abroad, it's impossible to submit a return online and the subsequent postal delays as a result - once it gets to HMRC there is a 5week backlog!) they wiped the late penalty.

Just to confuse things further, they then sent me out a copy of my 2012 return to fill in, also at that time 'late'. This has all entailed me frantically tearing my apartment apart for old payslips from my hagwon last year, hassling the HMRC over the phone and generally fretting massively.

and the saga isn't over. I think everything is in order, but I won't be surprised if there is another twist in the tail once HMRC get round to checking my re-submitted return   

I have that balance of 1000quid still hanging over my head even though I know that was due to my error, filling out the wrong part of the return. I just hope that I have now done enough to prove that I do not in fact owe this.


Anyway...lessons learnt:

1) Make sure all post is forwarded asap
2) READ the instructions that come with the return thoroughly
3) Keep all payslips
4) Get it sorted ASAP. 



  • JeremyC
  • Featured Contributor

    • 2322

    • July 15, 2012, 03:48:16 pm
    • Korea
Re: UK/English Tax Q&A
« Reply #109 on: February 14, 2013, 02:05:14 pm »
If you return to the UK and get a job in the UK, you will have to pay taxes - BUT ONLY ON THE MONEY YOU EARN WHILST IN THE UK. The UK taxman won't be hitting you up for your Korean income. So if you start work in November, you will be straight onto PAYE (Pay As You Earn - the UK system of tax for most employees) from November onwards.

You can always call the UK tax office and find out yourself. Internet forum people aren't always the most reliable.  :evil:

Personally, I just paid the tax in Korea because I agree with taxation and because it was a relatively small amount. I live in Australia now and I pay tax here. I wouldn't expect the UK taxman to be chasing me for my Australian or Korean earnings any time soon.

Not sure that's 100% correct. I was told you are liable for tax on earnings you take/send in to the UK if you're resident there for tax purposes. Of course you'd have to take/send in a fair amount as the threshold has risen so much, but just a heads up.
It's nice to be important but more important to be nice.


  • flasyb
  • Hero of Waygookistan

    • 1901

    • November 30, 2010, 12:10:03 pm
    • South Korea
Re: UK/English Tax Q&A
« Reply #110 on: February 14, 2013, 03:25:43 pm »
If you return to the UK and get a job in the UK, you will have to pay taxes - BUT ONLY ON THE MONEY YOU EARN WHILST IN THE UK. The UK taxman won't be hitting you up for your Korean income. So if you start work in November, you will be straight onto PAYE (Pay As You Earn - the UK system of tax for most employees) from November onwards.

You can always call the UK tax office and find out yourself. Internet forum people aren't always the most reliable.  :evil:

Personally, I just paid the tax in Korea because I agree with taxation and because it was a relatively small amount. I live in Australia now and I pay tax here. I wouldn't expect the UK taxman to be chasing me for my Australian or Korean earnings any time soon.

Not sure that's 100% correct. I was told you are liable for tax on earnings you take/send in to the UK if you're resident there for tax purposes. Of course you'd have to take/send in a fair amount as the threshold has risen so much, but just a heads up.

Yup.

Just like I posted above with the Q&A from the tax website.

Quote
Q2. When I go to live or work abroad, will I continue to pay UK tax?
A2. If you remain treated as resident in the UK for UK tax purposes, normally you will be taxable on your income arising in the UK and overseas. If you are treated as resident and pay tax outside the UK HMRC can give appropriate credit for any tax paid abroad.

If you're not normally resident in the UK (and most of us won't be if we leave to take a job abroad for longer than one tax year) then you won't be paying UK tax on your Korean earnings.

All of this information is somewhere in this thread.
In a time of universal deceit, telling the truth is a revolutionary act.

We are not "guests" in Korea. Korea didn't invite us over for Pimms in the garden. We are paid employees.


  • JeremyC
  • Featured Contributor

    • 2322

    • July 15, 2012, 03:48:16 pm
    • Korea
Re: UK/English Tax Q&A
« Reply #111 on: February 14, 2013, 05:39:37 pm »
Ah, thanks flasyb.
It's nice to be important but more important to be nice.


Re: UK/English Tax Q&A
« Reply #112 on: February 27, 2013, 02:12:52 pm »
So.  I've been here over 6 months and haven't been taxed.

I'm going to fill in a p85 now because I intend to be out of the country for more than April to April and then I will apply for a certificate of residency.

Is this the right course of action even though I've been here 6 months already?


  • Morticae
  • Hero of Waygookistan

    • 1400

    • August 31, 2010, 12:45:33 pm
Re: UK/English Tax Q&A
« Reply #113 on: February 27, 2013, 02:15:04 pm »
So.  I've been here over 6 months and haven't been taxed.

I'm going to fill in a p85 now because I intend to be out of the country for more than April to April and then I will apply for a certificate of residency.

Is this the right course of action even though I've been here 6 months already?

If you haven't been taxed yet, they could be waiting to hit you with it at any point, in one lump sum. Probably your next paycheck.


  • Darkeru
  • Expert Waygook

    • 703

    • September 08, 2010, 01:03:17 pm
    • Seoul, South Korea
Re: UK/English Tax Q&A
« Reply #114 on: September 02, 2013, 12:31:24 pm »
A question about tax when non-resident in the UK.

If I pay my tax now, will it be refunded? I've not yet submitted my form to be declared as non-resident, because I didn't expect that I'd be out of the U.K. for a full tax year.
[In Korea once more - Working in Pyeongtaek]


Re: UK/English Tax Q&A
« Reply #115 on: September 02, 2013, 12:52:24 pm »
Tax on UK earnings may be qualify for a refund depending on how much of your personal allowances you have used up.  When you send in the form to say you're gong abroad, they will calculate it automatically and refund any over payments.

You won't get it all back unless your earnings for the tax year were below the tax threshold.

Also, what do you mean pay your tax now? When else would you pay it?


  • Darkeru
  • Expert Waygook

    • 703

    • September 08, 2010, 01:03:17 pm
    • Seoul, South Korea
Re: UK/English Tax Q&A
« Reply #116 on: September 04, 2013, 07:19:21 am »
Quote from: sootyandco link=topic=3810.msg390060#msg390060 date=137
Also, what do you mean pay your tax [b
now[/b]? When else would you pay it?

After returning?

I heard that if non-resident, you're not liable for UK taxes at all - only Korean ones, but to be non-resident you're out of the country the whole tax year, which they don't know until you actually are (as plans change and so on).
[In Korea once more - Working in Pyeongtaek]


  • adfletch83
  • Super Waygook

    • 297

    • June 02, 2012, 11:01:40 pm
    • Daegu, ROK
    more
Re: UK/English Tax Q&A
« Reply #117 on: September 04, 2013, 07:42:27 am »
I feel like the answer to these questions depend on which advisor you speak to at HMRC. I called them twice before I left the UK and each time they had to 'speak to a supervisor and call me back'.
I actually had a good experience with them as they sent me the residency cert. after first time of asking.  I hear some people had problems with this.

As I understood it, as I have no dependents or property/investments in the UK, I am not liable for UK tax. I came here in Aug 2012 and paid tax April-Aug 2012 in the UK through PAYE.

Useful information on this thread, but the fact that it's SOOOO long shows just how annoyingly inconsistent and frustrating the UK tax system is. Things I've learned from being from the UK... If they can get your money, they will! :(
Have a nice Daegu!!


Re: UK/English Tax Q&A
« Reply #118 on: September 04, 2013, 09:18:34 am »

I heard that if non-resident, you're not liable for UK taxes at all - only Korean ones
[/quote]

That's not entirely true.  As a non UK resident, you are exempted from UK Income Tax on your pay in South Korea.  The dual tax treaty means between UK and South Korea means that you will only pay Income Tax in  one country.   If you had any other income sources in the UK, that would be taxed in the UK.  Liklihood of that is low, but it's important to be clear, especially when it comes to dealing with the HMRC. The more knowledge you have, the more likely that you'll ask the right questions when you contact HMRC.

[/quote]
After returning?
[/quote]

Since you would have paid income tax in South Korea, you won't have to pay it in the UK.  This even applies if you had the 2 years tax exemption. 

However, what you need to look out for is Capital Gains Tax.  If you bring in huge sums of money from abroad in a tax year, that may become taxable. Bring in over 11,000GBP makes you eligble to pay CGT.


If you need to contact HMRC, it's best to do so in writing, they have a special team that deals only with expats, and I've found them to be consistent with their information.  The guys on the phone unfortunately know nothing.  They deal with calls mainly about tax credits and benefits, so are at a complete loss when it comes to the minority expat community.


  • Darkeru
  • Expert Waygook

    • 703

    • September 08, 2010, 01:03:17 pm
    • Seoul, South Korea
Re: UK/English Tax Q&A
« Reply #119 on: September 04, 2013, 02:39:58 pm »
However, what you need to look out for is Capital Gains Tax.  If you bring in huge sums of money from abroad in a tax year, that may become taxable. Bring in over 11,000GBP makes you eligble to pay CGT.


If you need to contact HMRC, it's best to do so in writing, they have a special team that deals only with expats, and I've found them to be consistent with their information.  The guys on the phone unfortunately know nothing.  They deal with calls mainly about tax credits and benefits, so are at a complete loss when it comes to the minority expat community.

That's unfortunate about the CGT. If I understand correctly, anyone who spends a full tax year working here would need to pay it, as even a 2.0 million won salary each month would surpass it.

Do you happen to know the department who deals with expats?  I actually wrote them before and they sent back a letter which basically restated the information I said I knew, then ignored the question I asked, which was how they applied in a certain situation.
[In Korea once more - Working in Pyeongtaek]