Uk Income Tax - Whats It Like ?

[samatm]

So I am contemplating working for a UK company. I am a US citizen living in the Philippines. Does anyone have any knowledge about what I should expect from the UK as far as paying Income Tax. Are there income abroad exclusions as with the US tax code? Just curios?

[sonjack2847]

If you pay tax in the philippines the UK should not tax you. But as you are a US citizen I suggest you go to hmrc.gov.uk and check so as there are no mistakes.

[samatm]

If you pay tax in the philippines the UK should not tax you. But as you are a US citizen I suggest you go to hmrc.gov.uk and check so as there are no mistakes.

OH the tax part in the philippines looks like it could quite a bit more than UK taxes. How does the PI collect taxes from resident expats?

[Jack Peterson]

If you pay tax in the philippines the UK should not tax you. But as you are a US citizen I suggest you go to hmrc.gov.uk and check so as there are no mistakes.

OH the tax part in the philippines looks like it could quite a bit more than UK taxes. How does the PI collect taxes from resident expats?

if you go to http://www.bir.gov.ph you will find most of what you need. Hope this helps.

JackP :tiphat:

[Ashanti]

I don’t follow your question. If you mean as a non-resident non uk taxpayer do you get taxed if you’re working for a UK company???? ??? then the answer is YES. UK operates what they call a PAYE (pay as you earn) scheme. That’s mean everyone is tax automatically at source. In your case, your prospective UK employer will automatically deduct the taxes/NI from your gross pay and you will receive the net pay only. The employers will remit their tax deductions monthly to HMRC by the 19^th of the month. A day late in remittance incurs a penalty.

But as you are a non-resident, non UK taxpayer, you can file a tax relief form to avoid double taxation which I understand the US has a reciprocal agreement with UK.

Although the above is a general guide, your questions is actually not easy to answer as it depends on the type of work you would be working on, ie entertainer, construction, etc or are you working wholly in a UK company or as a secondment from a US company, etc. Then there is your tax status as in are you a pensioner, etc.

Below, you can find the form for tax relief for a US taxpayer but I strongly suggest you trawl the HMRC site as only you knows your real situation.

http://search2.hmrc....ormId=985#forms

Edited June 4, 2012 by Ashanti