Tax Nomad

[cornishcarlos]

Anyone else in a similar situation and have any advice/warnings/experience ?

I don't pay tax, anywhere... U.K citizen.

Working 10 week rotation on a yacht. Don't spend more than 180 days in U.K or Thailand. Tried to register for tax in U.K through SeaTax, but they said I couldn't as I'm not resident for tax purposes !! So where am I resident for tax purposes ?? 

I have no problem not paying and have kept my head down for the past 24yrs but wondering what will happen in the future..

[Pilotman]

you must be resident somewhere, even as a crew member on a ship. the default should be where you are domiciled.  

 

Definition:

 

You are domiciled in the country in which you have your permanent home, or in which you consider to be your 'real' home. For UK purposes,domicile is not the same as residence or nationality, although both may be important in determining domicile. Under UK law, an individual cannot have more than one current domicile.

[Crossy]

Where are you paid from?

 

I've been non-resident for UK tax since the mid 90s. I spent many years paid out of Hong Kong where I was registered for tax. I dutifully filled out a HK tax return each year (OK my employer did) but since I wasn't resident in HK no tax was payable.

 

Now I'm registered for tax in sunny Thailand and get hammered for the local rate ????

 

[cornishcarlos]

I work on different boats for different owners/companies !! Now based in Singapore on a Cayman Islands registered yacht owned by a Hong Kong registered company ????

Think I'll try again in U.K with a different tax company and see if I can get it done. Will be registered for seafarers tax reduction, so nothing to pay anyway...

[jojothai]

From what you say, Your situation will not be easy to determine.

 

On the post you have not stated how / where you are paid.

Depending where your bank is and which country determines whether the banks already has CRS obligations.

 

If it is implementing CRS, they will have already sent you the CRS requirements.

The CRS requires that you declare your tax residence and number. 

If you dont have one, which may be your case, then you have to say why not.

 

From my previous exchanges with institutions I guess that in your case they are likely to determine that your main residence address has to be used and they will supply your account information to the tax authorities in that country.

If your payments are primarily from a Hong Kong company the bank may also consider sending your account details to the Hong Kong tax authorities as they consider it likely that you are employed through there.

 

i was previously working outside Thailand but had my residential address here. Two of my banks outside thailand have previously demanded that i give TAX ID for both the country I work and Thailand because it was my residential address. I repeatedly told them i was not tax resident in Thailand but they would not accept that until I gave them proof that i was living outside and not resident 180 days (eg apartment receipts, airline tickets, passport stamps)

If it's possible you might get into this problem then it may be wise to collate some evidence from your travels that you could use in a similar way.

[sanemax]

On 7/29/2019 at 12:12 PM, cornishcarlos said:

I work on different boats for different owners/companies !! Now based in Singapore on a Cayman Islands registered yacht owned by a Hong Kong registered company ????

Think I'll try again in U.K with a different tax company and see if I can get it done. Will be registered for seafarers tax reduction, so nothing to pay anyway...

I use a UK guy to sort my taxes out , he runs his own tax company and used to work for the IR , PM me if you want his contact details

[Pdavies99]

Have you actually spoken etc with the UK HM Revenue and Customs ?  If you have not, then they will still apply taxation as a UK resident and backdate it! 

(If you say you cannot or are unable to prove past years income, then they make an asumption of income).  It is the HM Revenue who tell you if and when they decide you are non resident for tax purposes.

 

They will eventually catch up with you, and until tax returns have been completed for missing declaration years, then quite high penalties will be applied (they may be cancelled once they are satisfied). 

 

I have in the past as a financial advisor assisted many "offshore" workers resolve this issue, it can be done. 

(A panic comes up when many are offered employment by USA companies who want to see you are tax compliant for past years)

 

Good luck and remember the HM Revenue are waiting!

[Satcommlee]

Don't hurry to pay tax in Thailand... it's no tax haven!!!

[cornishcarlos]

9 hours ago, Pdavies99 said:

It is the HM Revenue who tell you if and when they decide you are non resident for tax purposes.

 

Being out the country for more than 180 days/year for the past 23yrs makes me not resident for tax purposes. It's on their website ????

[sikishrory]

Im in same situation. Aussie but work on a yacht for majority of the year. Rest of the time live in Thailand.

I don't spend 6 months in Australia and prefer to be a non resident there anyway.

During past 3 years I have had only 1 time where I spent more than 6 months in Thailand in a year. Which is required to pay tax.

A yacht is not counted as a place to live by tax law in Australia.

I have sent a bunch of emails to supposed leading advisors in Bangkok and received no reply.

I have tried to organise joint lodgement with my thai wife and told it was unnecessary.

It's really an annoying situation.

Seatax are pretty much forefront of yacht tax issues, so if they can't help you i dont like your chances.

Boat flag makes no difference.

Nor does the account they are remitted to really.

Let me know if you find a solution.

The only other thing I would say is that it doesn't matter anyway unless you return to live in UK.

[sanemax]

Even if you dont live in the UK , you still have to file tax returns if you were self-employed , even if you dont have to pay UK tax , you still need to file your self assessment forms , if not , they fine you 10 quid a day for late/non submission  

[CGW]

My situation was similar for over 40 years, I left UK in 1978 and informed tax office I was leaving. I personally never paid taxes though the "companies" i worked for, dependant on where I was working paid local taxes.

I wouldn't be in a rush to volunteer to pay taxes, I'm sure if I had pushed hard enough Thailand would have accepted further personal taxes as I was "living" here.

[Pdavies99]

13 hours ago, cornishcarlos said:

 

Being out the country for more than 180 days/year for the past 23yrs makes me not resident for tax purposes. It's on their website ????

Yes, but you have to declare that to them!! 

 

Like everyone knows its up to you to manage your tax affairs, if not how will they know?  

Anyway you either sort it out or get a shock in the future.

[Pdavies99]

2 hours ago, sanemax said:

Even if you dont live in the UK , you still have to file tax returns if you were self-employed , even if you dont have to pay UK tax , you still need to file your self assessment forms , if not , they fine you 10 quid a day for late/non submission  

Exactly right....(even if you are working for a company and not paying UK taxes) eventually and up to them when they will contact you and state that you no longer need to effect annual tax returns unless your circumstances change.  (You can also ask this point)

 

I suggest you get registered for online services with HM Revenue.

Edited July 31, 2019 by Pdavies99