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Re: UK/English Tax Q&A
« Reply #120 on: September 08, 2013, 07:55:59 pm »
I should stress the 'may' for CGT.  It may also be excempt under the Double taxation agreement, but I have been able to make sense of the agreement, and have not yet asked HMRC about it directly.

Anyway, the address I use is

Customer Operations
International Caseworker
BP1301, Benton Park View
Newcastle Upon Tyne
NE98 1ZZ


Re: UK/English Tax Q&A
« Reply #121 on: September 09, 2013, 07:54:56 am »
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.

This will help you understand what capitals gain tax is. You're barking up the wrong tree.

http://www.hmrc.gov.uk/cgt/possessions/basics.htm


  • joeyg
  • Veteran

    • 114

    • November 10, 2012, 11:54:24 pm
    • London - England
Re: UK/English Tax Q&A
« Reply #122 on: October 30, 2013, 12:39:36 pm »
First. I'll make this crystal clear. You HAVE to pay tax. In one country or the other. Otherwise... well... that's exactly what tax evasion is.
Although, I don't think the UK tax office can be aware of whatever income you've earned abroad, unless you tell them. And while, usually, if you're outside of the UK for a full tax year April - April... they don't care about your income. IF however you get a Certificate of residency, you are technically stating that while not physically present in the UK, for tax purposes, that's where you are. So, while the money going into your bank account is here in Korea... in the eyes of the HMRC, you're living in the UK receiving money from abroad.

Ultimately, after working it all out... It seems a bit pointless to get the residency certificate and avoid Korean taxes, as you are then liable to pay the higher rate UK tax, plus all the hassle that comes with paying taxes to your homeland from abroad. But read on for all the info if you like. I've sourced where I could.



So...I recently talked to the tax office, and read through this thread and the UK taxation agreement, and a lot of the bloody HRMC webpage etc.
I now have a better understanding of this whole mess.

I'll start with the most important parts in the form of quotes


http://www.hmrc.gov.uk/taxtreaties/in-force/korea-dtc.pdf
"Article 20 (taken from the double taxation agreement)

Teachers

(1) Subject to paragraph (2) of this Article, an individual who visits one of the Contracting States for a period not exceeding two years for the purpose of teaching or engaging in research at a university, college, school or other similar educational institution which is recognised as non-profit seeking by the Government of that Contracting State, and who immediately before that visit was a resident of the other Contracting State, shall be taxable only in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date he first visits that State for such purpose.

(2) Where, under the provisions of this
Convention taken together with the law in
force in the other State, a teacher or researcher referred to in paragraph (1) of this Article is exempt from tax in that other State on his remuneration, or is entitled to a deduction equal to that remuneration in computing his liability to tax in that other State, such remuneration shall be taxable only in the first-mentioned State."


The wording they give to Koreans is much simpler, and is the same as above but reversed:


http://www.hmrc.gov.uk/manuals/dtmanual/DT11360.htm
"DT11357 - Korea: Teachers and research workers (doube taxation agreement)

Under Article 20 of the agreement, a teacher or researcher from Korea will be exempt from United Kingdom tax on his remuneration for teaching or research for a period not exceeding two years from the date of his first arrival in the UK to teach or undertake research. But the exemption is available only if: (a) his visit to the UK does not exceed two years and (b) he remains taxable in Korea on the remuneration he earns in the United Kingdom."


The double taxation agreement is not an incentive put in place so people will come and work in Korea... It's not a bonus I know they have something like this out in the middle east, but it's just not the case here.

So, why do some many people think it's a tax free incentive??? Well, if you get the residency certificate and then don't tell them (UK tax office) about your earnings (here in Korea)... you will on paper owe them (UK tax office) nothing. But only in the same way that if you are self employed and fudge the numbers, you'd owe them less too. Obviously they have less control of affairs outside of their jurisdiction, so for the time being you might (highly likely) get away with it. But it could bite you in the ass later. In the states, they call it being Audited... I've never had the pleasure in the UK. But I imagine it involves having a nice chat with a tax agent and then they work out what you'd owe plus a fine, and one massive headache.
Like I said, you probably won't get caught... It's up to you.

What is the residency certificate?
Originally, I thought it this just proved that you had lived in a country. I thought my school needed this, much like a birth certificate to prove where I was living before. But, they wanted a certificate for the length of my contract that I hadn't yet worked.
This piece of paper basically says to the Korea government that you are technically resident in the UK for purposes of tax.

I repeat! A residency certificate basically says, for the purpose of taxes, you reside in the UK.
If you've already paid some Korean tax, you can get a copy of this information and they will take that in account in the UK as tax credits and reduce what you owe to them.

If you've already been in Korea for more than 2 years, or plan to stay here for more than two years, then the double taxation agreement is of no use to you. I think you could technically use it for the first 2 years if you wanted... But... from what I can tell, the agreement is only really beneficial to the Koreans, since UK tax is much higher.

If you're staying less than 2 years, you can use the double taxation agreement. But, well... Why would you. It's cheaper to pay the Koreans, and after all, it's their public services that you're using.

If you're outside of the UK for the whole tax year, April - April... you also, count as a non-resident for the purposes of tax. Unless you have the residency certificate. So, stay out of the country for that amount of time and don't pay the UK taxes. HMRC doesn't care. It's nothing to do with them. Remember though if you return to the UK before the end of the TAX year (they don't care if you were out of the country for 365 days, or Jan 1st - Jan 1st...l they care about April 5th - April 5th), then you have to pay taxes back on what you've earned so far for that tax year. If you started in March, it's best just to take an extended holiday at the end of your contract and return in April.

Quotage:
http://www.hmrc.gov.uk/international/return-uk.htm
"Returning to the UK less than a full tax year since your departure

If you were out of the country for less than a full tax year (6 April to 5 April) you will have remained UK resident while you were abroad. This means you will have to pay tax on your UK income and gains, and you may also have to pay UK tax on your foreign income and gains for the whole tax year. Follow the link below to find out how residence affects your tax."

Bloody cheeky of them, but there you go!


Also, please note, that if you want your UK pension, you should still top up your contributions. People usually mix this up with taxes, but it's a separate kettle of fish. As is the annoyance that UK peeps have to pay contributions to the Korean pension plan, but don't get anything back, while other countries get a nice lump refund at the end of their contract. I'll work that one out later.
Here's a link to work out paying contributions to your state pension from abroad http://www.hmrc.gov.uk/international/ni-abroad.htm

Hope this clears things up. Here are some links so you can read for yourself.

Also, if anyone has time. Give the HMRC a call and clear up the extent in which they record residency certificate requests at present. If they don't track that. Then yeah. You really could just hand one in and illegally avoid paying taxes in both countries without worry.

Sources: Korea - UK Double taxation convention
Specifically Article 20
http://www.hmrc.gov.uk/taxtreaties/in-force/korea-dtc.pdf

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/NEWS/cert-of-residence.htm

http://www.hmrc.gov.uk/manuals/dtmanual/DT11357.htm
« Last Edit: October 30, 2013, 12:47:22 pm by joeyg »


  • Suz-goose
  • Super Waygook

    • 303

    • March 05, 2012, 07:33:45 am
    • Korea
Re: UK/English Tax Q&A
« Reply #123 on: October 30, 2013, 01:56:34 pm »
I watched this and found it pretty mind melding.

http://www.youtube.com/watch?v=yQW2K25Lyyk

I wish I hadn't given the residency cert, since I have been living here and not getting any of the UK services I will be expensively paying for, and had to buy myself here. I will be screwed over on a contributions based pension at home too, super  :rolleyes:.


Re: UK/English Tax Q&A
« Reply #124 on: December 02, 2013, 08:12:32 am »
I never got the residency cert. never declared myself an overseas citizen to the Korean government.  I've been here almost 16 months and haven't been called up for tax.  I'm leaving the country in 7 and a half months and am expecting to be hit with some huge tax bill.  Bring it on Korea.


Re: UK/English Tax Q&A
« Reply #125 on: December 02, 2013, 08:38:03 am »
I never got the residency cert. never declared myself an overseas citizen to the Korean government.  I've been here almost 16 months and haven't been called up for tax.  I'm leaving the country in 7 and a half months and am expecting to be hit with some huge tax bill.  Bring it on Korea.

Sounds exciting. 2 years worth of tax (pension) sounds delightful.


Re: UK/English Tax Q&A
« Reply #126 on: December 02, 2013, 10:59:27 am »
So if theoretically your contract ends end of February beginning of March could you not just return to the U.K and stay off the radar (don't sign on or work) until after April 6th?

My school mithered me to submit a certificate of residency I finally managed to get one after months of toing and throwing with HMRC but I'm beginning to think it wasn't worth it after reading this thread.


  • robvandan
  • Veteran

    • 173

    • June 17, 2011, 05:54:23 am
    • Seoul, Korea.
Re: UK/English Tax Q&A
« Reply #127 on: December 02, 2013, 01:05:24 pm »
I think in truth it makes little difference financially as to which way you go. Of course tax in the UK is much higher, basic rate being 20p in the pound. However the tax free allowance is around 7,000 pounds ish, so the actual amount of income you will be taxed on is a lot less than many think. Last time I did the calculation between the two, it wasn't much difference (less than 100) iirc. Plus some people want to maintain their Tax Contributions and NI contributions for State Pension purposes.

Anyways, whatever boat people are in, I wouldn't worry too much, and I doubt HMRC are gonna be chasing too many of us over a few hundred quid, although I wouldn't hold my breath either.
"Difference is, I walked out a winner. That's my key to success."


Re: UK/English Tax Q&A
« Reply #128 on: January 17, 2014, 06:32:59 am »
Hi,

I don't know if any of you can help. I have been back in the UK for about 7 months now and HMRC are saying that because I wasn't out of the country for a full tax year (I was only in Korea for 7 months), I was classed as a UK citizen and therefore need to pay tax on what I earned in Korea. They say that I can just make up the percentage to 20%. So if was being taxed 7%, I would now need to pay the 13% to make up for it. Does anyone know what we are actually taxed in Korea and also if I should be including the pension percentage we paid etc?


Re: UK/English Tax Q&A
« Reply #129 on: January 17, 2014, 07:39:42 am »
I don't know what the exact tax rate is but I know that being out of the country less than a single april-april does indeed mean your earnings are taxable. T_T

One of the reasons I've stayed for 2 years.


Re: UK/English Tax Q&A
« Reply #130 on: March 14, 2014, 03:20:15 pm »
QUESTION. Please help me :)

My situation.

Korea year 1 (2012-2013): I didn't receive the residency certificate in time, so I paid tax in Korea.
Korea year 2 (2013-2014): I paid 0% tax in Korea due to the residency certificate (which eventually arrived).

Now, year 3 (2014-2015)
Does the certificate provide me with any two years paying 0% tax in Korea
OR
Does the certificate only work for the first two years in Korea?

Any help would be amazing. I've emailed the HMRC, but last time they took around 2 months to reply (which is why I had to pay tax in year one!)

Thanks!!!


Re: UK/English Tax Q&A
« Reply #131 on: April 09, 2014, 11:11:24 am »
First 2 years. Just pay Korean tax.


  • Choirs
  • Veteran

    • 76

    • December 08, 2012, 05:53:08 pm
    • UK
Re: UK/English Tax Q&A
« Reply #132 on: September 05, 2014, 12:02:17 pm »
joeyg's post above is absolutely fantastic and cleared up any misinformation I had about the 2 years 'tax free' exemption.

I highly suggest you give it a full read if you are in that situation.


  • RDW27
  • Veteran

    • 100

    • March 04, 2014, 10:56:05 am
    • Daegu
Re: UK/English Tax Q&A
« Reply #133 on: December 04, 2014, 09:23:12 am »
Hello,

Been trying to get my tax affairs in order - stress. My advice would be don't get a certificate, creates more hassle than it's worth in the long run. Pay the Korean Tax.

HMRC now seem to have fairly clear guidance on residency status - https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/366839/rdr3_1_.pdf

If you are only staying in Korea one year, the significant point is the second oversees test. This is that you spent one of the last three tax years in the UK, then moved abroad, then you were in the UK for less than 15 days. This makes you a non-resident and therefore, as I understand it, not subject to Uk income tax.

Therefore if your contract finishes in February or March, it could well be worthwhile doing some travelling and lasting it out until after April 6th!


Re: UK/English Tax Q&A
« Reply #134 on: January 14, 2015, 09:43:53 pm »
First. I'll make this crystal clear. You HAVE to pay tax. In one country or the other. Otherwise... well... that's exactly what tax evasion is.
Although, I don't think the UK tax office can be aware of whatever income you've earned abroad, unless you tell them. And while, usually, if you're outside of the UK for a full tax year April - April... they don't care about your income. IF however you get a Certificate of residency, you are technically stating that while not physically present in the UK, for tax purposes, that's where you are. So, while the money going into your bank account is here in Korea... in the eyes of the HMRC, you're living in the UK receiving money from abroad.

Ultimately, after working it all out... It seems a bit pointless to get the residency certificate and avoid Korean taxes, as you are then liable to pay the higher rate UK tax, plus all the hassle that comes with paying taxes to your homeland from abroad. But read on for all the info if you like. I've sourced where I could.



So...I recently talked to the tax office, and read through this thread and the UK taxation agreement, and a lot of the bloody HRMC webpage etc.
I now have a better understanding of this whole mess.

I'll start with the most important parts in the form of quotes


http://www.hmrc.gov.uk/taxtreaties/in-force/korea-dtc.pdf
"Article 20 (taken from the double taxation agreement)

Teachers

(1) Subject to paragraph (2) of this Article, an individual who visits one of the Contracting States for a period not exceeding two years for the purpose of teaching or engaging in research at a university, college, school or other similar educational institution which is recognised as non-profit seeking by the Government of that Contracting State, and who immediately before that visit was a resident of the other Contracting State, shall be taxable only in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date he first visits that State for such purpose.

(2) Where, under the provisions of this
Convention taken together with the law in
force in the other State, a teacher or researcher referred to in paragraph (1) of this Article is exempt from tax in that other State on his remuneration, or is entitled to a deduction equal to that remuneration in computing his liability to tax in that other State, such remuneration shall be taxable only in the first-mentioned State."


The wording they give to Koreans is much simpler, and is the same as above but reversed:


http://www.hmrc.gov.uk/manuals/dtmanual/DT11360.htm
"DT11357 - Korea: Teachers and research workers (doube taxation agreement)

Under Article 20 of the agreement, a teacher or researcher from Korea will be exempt from United Kingdom tax on his remuneration for teaching or research for a period not exceeding two years from the date of his first arrival in the UK to teach or undertake research. But the exemption is available only if: (a) his visit to the UK does not exceed two years and (b) he remains taxable in Korea on the remuneration he earns in the United Kingdom."


The double taxation agreement is not an incentive put in place so people will come and work in Korea... It's not a bonus I know they have something like this out in the middle east, but it's just not the case here.

So, why do some many people think it's a tax free incentive??? Well, if you get the residency certificate and then don't tell them (UK tax office) about your earnings (here in Korea)... you will on paper owe them (UK tax office) nothing. But only in the same way that if you are self employed and fudge the numbers, you'd owe them less too. Obviously they have less control of affairs outside of their jurisdiction, so for the time being you might (highly likely) get away with it. But it could bite you in the ass later. In the states, they call it being Audited... I've never had the pleasure in the UK. But I imagine it involves having a nice chat with a tax agent and then they work out what you'd owe plus a fine, and one massive headache.
Like I said, you probably won't get caught... It's up to you.

What is the residency certificate?
Originally, I thought it this just proved that you had lived in a country. I thought my school needed this, much like a birth certificate to prove where I was living before. But, they wanted a certificate for the length of my contract that I hadn't yet worked.
This piece of paper basically says to the Korea government that you are technically resident in the UK for purposes of tax.

I repeat! A residency certificate basically says, for the purpose of taxes, you reside in the UK.
If you've already paid some Korean tax, you can get a copy of this information and they will take that in account in the UK as tax credits and reduce what you owe to them.

If you've already been in Korea for more than 2 years, or plan to stay here for more than two years, then the double taxation agreement is of no use to you. I think you could technically use it for the first 2 years if you wanted... But... from what I can tell, the agreement is only really beneficial to the Koreans, since UK tax is much higher.

If you're staying less than 2 years, you can use the double taxation agreement. But, well... Why would you. It's cheaper to pay the Koreans, and after all, it's their public services that you're using.

If you're outside of the UK for the whole tax year, April - April... you also, count as a non-resident for the purposes of tax. Unless you have the residency certificate. So, stay out of the country for that amount of time and don't pay the UK taxes. HMRC doesn't care. It's nothing to do with them. Remember though if you return to the UK before the end of the TAX year (they don't care if you were out of the country for 365 days, or Jan 1st - Jan 1st...l they care about April 5th - April 5th), then you have to pay taxes back on what you've earned so far for that tax year. If you started in March, it's best just to take an extended holiday at the end of your contract and return in April.

Quotage:
http://www.hmrc.gov.uk/international/return-uk.htm
"Returning to the UK less than a full tax year since your departure

If you were out of the country for less than a full tax year (6 April to 5 April) you will have remained UK resident while you were abroad. This means you will have to pay tax on your UK income and gains, and you may also have to pay UK tax on your foreign income and gains for the whole tax year. Follow the link below to find out how residence affects your tax."

Bloody cheeky of them, but there you go!


Also, please note, that if you want your UK pension, you should still top up your contributions. People usually mix this up with taxes, but it's a separate kettle of fish. As is the annoyance that UK peeps have to pay contributions to the Korean pension plan, but don't get anything back, while other countries get a nice lump refund at the end of their contract. I'll work that one out later.
Here's a link to work out paying contributions to your state pension from abroad http://www.hmrc.gov.uk/international/ni-abroad.htm

Hope this clears things up. Here are some links so you can read for yourself.

Also, if anyone has time. Give the HMRC a call and clear up the extent in which they record residency certificate requests at present. If they don't track that. Then yeah. You really could just hand one in and illegally avoid paying taxes in both countries without worry.

Sources: Korea - UK Double taxation convention
Specifically Article 20
http://www.hmrc.gov.uk/taxtreaties/in-force/korea-dtc.pdf

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/NEWS/cert-of-residence.htm

http://www.hmrc.gov.uk/manuals/dtmanual/DT11357.htm
Thanks for this very informative post! I've been in Korea since feb 2014 so when i go back in february 2015 i will still be within the tax year..are the tax office likely to know if ive been earning? And if so is it likely to be more than a few hundred pounds considering I've been paying tax here? Dunno if it would be cheaper to travel in europe for a month...


  • Morfee
  • Super Waygook

    • 477

    • August 23, 2014, 03:51:54 pm
    • Gangwon-Do
Re: UK/English Tax Q&A
« Reply #135 on: January 15, 2015, 08:51:53 am »
First. I'll make this crystal clear. You HAVE to pay tax. In one country or the other. Otherwise... well... that's exactly what tax evasion is.
Although, I don't think the UK tax office can be aware of whatever income you've earned abroad, unless you tell them. And while, usually, if you're outside of the UK for a full tax year April - April... they don't care about your income. IF however you get a Certificate of residency, you are technically stating that while not physically present in the UK, for tax purposes, that's where you are. So, while the money going into your bank account is here in Korea... in the eyes of the HMRC, you're living in the UK receiving money from abroad.

Ultimately, after working it all out... It seems a bit pointless to get the residency certificate and avoid Korean taxes, as you are then liable to pay the higher rate UK tax, plus all the hassle that comes with paying taxes to your homeland from abroad. But read on for all the info if you like. I've sourced where I could.



So...I recently talked to the tax office, and read through this thread and the UK taxation agreement, and a lot of the bloody HRMC webpage etc.
I now have a better understanding of this whole mess.

I'll start with the most important parts in the form of quotes


http://www.hmrc.gov.uk/taxtreaties/in-force/korea-dtc.pdf
"Article 20 (taken from the double taxation agreement)

Teachers

(1) Subject to paragraph (2) of this Article, an individual who visits one of the Contracting States for a period not exceeding two years for the purpose of teaching or engaging in research at a university, college, school or other similar educational institution which is recognised as non-profit seeking by the Government of that Contracting State, and who immediately before that visit was a resident of the other Contracting State, shall be taxable only in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date he first visits that State for such purpose.

(2) Where, under the provisions of this
Convention taken together with the law in
force in the other State, a teacher or researcher referred to in paragraph (1) of this Article is exempt from tax in that other State on his remuneration, or is entitled to a deduction equal to that remuneration in computing his liability to tax in that other State, such remuneration shall be taxable only in the first-mentioned State."


The wording they give to Koreans is much simpler, and is the same as above but reversed:


http://www.hmrc.gov.uk/manuals/dtmanual/DT11360.htm
"DT11357 - Korea: Teachers and research workers (doube taxation agreement)

Under Article 20 of the agreement, a teacher or researcher from Korea will be exempt from United Kingdom tax on his remuneration for teaching or research for a period not exceeding two years from the date of his first arrival in the UK to teach or undertake research. But the exemption is available only if: (a) his visit to the UK does not exceed two years and (b) he remains taxable in Korea on the remuneration he earns in the United Kingdom."


The double taxation agreement is not an incentive put in place so people will come and work in Korea... It's not a bonus I know they have something like this out in the middle east, but it's just not the case here.

So, why do some many people think it's a tax free incentive??? Well, if you get the residency certificate and then don't tell them (UK tax office) about your earnings (here in Korea)... you will on paper owe them (UK tax office) nothing. But only in the same way that if you are self employed and fudge the numbers, you'd owe them less too. Obviously they have less control of affairs outside of their jurisdiction, so for the time being you might (highly likely) get away with it. But it could bite you in the ass later. In the states, they call it being Audited... I've never had the pleasure in the UK. But I imagine it involves having a nice chat with a tax agent and then they work out what you'd owe plus a fine, and one massive headache.
Like I said, you probably won't get caught... It's up to you.

What is the residency certificate?
Originally, I thought it this just proved that you had lived in a country. I thought my school needed this, much like a birth certificate to prove where I was living before. But, they wanted a certificate for the length of my contract that I hadn't yet worked.
This piece of paper basically says to the Korea government that you are technically resident in the UK for purposes of tax.

I repeat! A residency certificate basically says, for the purpose of taxes, you reside in the UK.
If you've already paid some Korean tax, you can get a copy of this information and they will take that in account in the UK as tax credits and reduce what you owe to them.

If you've already been in Korea for more than 2 years, or plan to stay here for more than two years, then the double taxation agreement is of no use to you. I think you could technically use it for the first 2 years if you wanted... But... from what I can tell, the agreement is only really beneficial to the Koreans, since UK tax is much higher.

If you're staying less than 2 years, you can use the double taxation agreement. But, well... Why would you. It's cheaper to pay the Koreans, and after all, it's their public services that you're using.

If you're outside of the UK for the whole tax year, April - April... you also, count as a non-resident for the purposes of tax. Unless you have the residency certificate. So, stay out of the country for that amount of time and don't pay the UK taxes. HMRC doesn't care. It's nothing to do with them. Remember though if you return to the UK before the end of the TAX year (they don't care if you were out of the country for 365 days, or Jan 1st - Jan 1st...l they care about April 5th - April 5th), then you have to pay taxes back on what you've earned so far for that tax year. If you started in March, it's best just to take an extended holiday at the end of your contract and return in April.

Quotage:
http://www.hmrc.gov.uk/international/return-uk.htm
"Returning to the UK less than a full tax year since your departure

If you were out of the country for less than a full tax year (6 April to 5 April) you will have remained UK resident while you were abroad. This means you will have to pay tax on your UK income and gains, and you may also have to pay UK tax on your foreign income and gains for the whole tax year. Follow the link below to find out how residence affects your tax."

Bloody cheeky of them, but there you go!


Also, please note, that if you want your UK pension, you should still top up your contributions. People usually mix this up with taxes, but it's a separate kettle of fish. As is the annoyance that UK peeps have to pay contributions to the Korean pension plan, but don't get anything back, while other countries get a nice lump refund at the end of their contract. I'll work that one out later.
Here's a link to work out paying contributions to your state pension from abroad http://www.hmrc.gov.uk/international/ni-abroad.htm

Hope this clears things up. Here are some links so you can read for yourself.

Also, if anyone has time. Give the HMRC a call and clear up the extent in which they record residency certificate requests at present. If they don't track that. Then yeah. You really could just hand one in and illegally avoid paying taxes in both countries without worry.

Sources: Korea - UK Double taxation convention
Specifically Article 20
http://www.hmrc.gov.uk/taxtreaties/in-force/korea-dtc.pdf

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/NEWS/cert-of-residence.htm

http://www.hmrc.gov.uk/manuals/dtmanual/DT11357.htm
Thanks for this very informative post! I've been in Korea since feb 2014 so when i go back in february 2015 i will still be within the tax year..are the tax office likely to know if ive been earning? And if so is it likely to be more than a few hundred pounds considering I've been paying tax here? Dunno if it would be cheaper to travel in europe for a month...

They won't have a clue and won't care. Say you've been travelling if asked. If pushed, get someone (parents?) to write a letter saying they organised some money to send you travelling for a year or two. Who can disprove that without checking every single country in the world over 200 quids worth of tax?

Like I said, they seriously won't care.


  • RDW27
  • Veteran

    • 100

    • March 04, 2014, 10:56:05 am
    • Daegu
Re: UK/English Tax Q&A
« Reply #136 on: January 15, 2015, 10:58:59 am »
Robyn 2014: I doubt HMRC would check, know or chase you if you've earnt money abroad, certainly not for the relatively small amounts we're talking about, however if they ask you to submit a tax return I wouldn't lie about it, as that could be deemed as tax fraud etc. I don't think they would check and I'm sure you could get away with saying you've been travelling, but you wouldn't want it coming back to get you further down the line (for example do they have access to bank accounts etc?). Instead just hope that you don't get asked to send a tax return in. I know loads of people who have taught abroad and they haven't had to submit a tax return - by being away you basically just drop off their radar completely.

However I got a residency certifcate which basically told HMRC I was moving abroad and as such they asked me to fill in a tax return for 2013/14 to take into account the one month's pay in March I received (I avoided paying the tax though on a thing called split year treatment). If you didn't get a residency certificate I would guess you've just dropped off their radar completely - the residency certificate seems to cause most of the problems.

I'm actually doing a months travelling after the contract finishes, partly to do with tax, as it will mean I am out of the country the whole tax year and automatically non-resident. This means that I shouldn't have to submit any sort of return for 2014/15. To be automatically non resident I think you have to spend less than 16 days in the UK in a tax year.

If you've been paying Korean tax I wouldn't worry about it too much because if HMRC do ever chase you and you do need to pay, they will take off any korean tax you have already paid, from what you owe them, so I would make a copy of your payslips just in case. Given the higher allowances back in the UK I doubt there would be too much in it. 11 months pay at 2.1million w would probably only amount to about 700-800pound in tax, and they would take the korean tax off that.

I suspect one trigger might be if you go home and get a job straight away and get paid through PAYE before the end of the tax year, because you'll pop back up on their radar and they may want to know what you've been doing the rest of the year.

I wouldn't worry too much about it, you probably won't get asked to submit a tax return unless you got the residency certificate, and if you've been paying korean tax, then you'll probably only owe them a few hundred quid at most.
« Last Edit: January 15, 2015, 11:20:04 am by RDW27 »


Re: UK/English Tax Q&A
« Reply #137 on: January 15, 2015, 11:48:36 am »
Slightly off topic but having evaded Student loans repayments for 3 years I got a phone call asking to update my details. Turns out the only reason they bothered to contact me was because I hadn't turned up on the HMRC PAYE system in a long time.

Also very generous of the student loans company to lower the repayment threshold from 16,900 to 13,500 for Korea. 

If you are interested I haven't been fined or anything like that either for not paying a single penny for the 3 years since graduation.  :P

On topic: Pay tax in Korea.


  • RDW27
  • Veteran

    • 100

    • March 04, 2014, 10:56:05 am
    • Daegu
Re: UK/English Tax Q&A
« Reply #138 on: January 15, 2015, 12:26:10 pm »
Slightly off topic but having evaded Student loans repayments for 3 years I got a phone call asking to update my details. Turns out the only reason they bothered to contact me was because I hadn't turned up on the HMRC PAYE system in a long time.

Also very generous of the student loans company to lower the repayment threshold from 16,900 to 13,500 for Korea. 

If you are interested I haven't been fined or anything like that either for not paying a single penny for the 3 years since graduation.  :P

On topic: Pay tax in Korea.

They got in contact with me pretty quickly once I left for korea. I was also doing some unpaid work a few years ago and within about two months of not paying PAYE they sent me a letter asking what I was doing. I only paid student loans because they were threatening some pretty hefty fines each month, as it happens the repayment for me is about 10pound a month! Feel pretty sorry for a lot of the Americans here having to send home $$$'s of dollars each month to pay their student loans, 10 pound a month  :P


Re: UK/English Tax Q&A
« Reply #139 on: January 16, 2015, 04:43:49 pm »

Thanks for this very informative post! I've been in Korea since feb 2014 so when i go back in february 2015 i will still be within the tax year..are the tax office likely to know if ive been earning? And if so is it likely to be more than a few hundred pounds considering I've been paying tax here? Dunno if it would be cheaper to travel in europe for a month...
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They won't have a clue and won't care. Say you've been travelling if asked. If pushed, get someone (parents?) to write a letter saying they organised some money to send you travelling for a year or two. Who can disprove that without checking every single country in the world over 200 quids worth of tax?

Like I said, they seriously won't care.
[/quote]
Okay great thanks, yea I doubt they will ask where I've been!