UK contractors should avoid income tax by working overseas, advises Von Essen
11 March 2014
UK contractors should sign a contract to work overseas before 6 April 2014 and continue to work overseas until 5 April 2015 to ensure their income is exempt from UK income tax, says Von Essen, providers of tax advisory services to international contractors.
Tue, 11 Mar 2014
UK contractors should sign a contract to work overseas before 6 April 2014 and continue to work overseas until 5 April 2015 to ensure their income is exempt from UK income tax, says Von Essen, providers of tax advisory services to international contractors.
By following this advice Von Essen says contractors will comply with a new, stricter residency test introduced in 2013, which provides the simplest route for contractors working overseas to minimise their UK tax liabilities.
Von Essen explains that other options are available through the residency rules to ensure foreign earnings are exempt from UK tax, but warns that they are so complex that contractors risk falling foul of them.
Lydia Marref, partner at Von Essen, comments: “There are lots of options for contractors working overseas on how to structure their affairs to minimise the amount of tax they pay, but for UK contractors the easiest option now is to contract abroad for a complete UK tax year.
“A large number of UK contractors are opting to work overseas to benefit from an attractive mix of interesting work, high income, the excitement of working in a new country and, in many cases, very favourable tax regimes.”
UK contractors should sign a contract to work overseas before 6 April 2014 and continue to work overseas until 5 April 2015 to ensure their income is exempt from UK income tax, says Von Essen, providers of tax advisory services to international contractors.
By following this advice Von Essen says contractors will comply with a new, stricter residency test introduced in 2013, which provides the simplest route for contractors working overseas to minimise their UK tax liabilities.
Von Essen explains that other options are available through the residency rules to ensure foreign earnings are exempt from UK tax, but warns that they are so complex that contractors risk falling foul of them.
Lydia Marref, partner at Von Essen, comments: “There are lots of options for contractors working overseas on how to structure their affairs to minimise the amount of tax they pay, but for UK contractors the easiest option now is to contract abroad for a complete UK tax year.
“A large number of UK contractors are opting to work overseas to benefit from an attractive mix of interesting work, high income, the excitement of working in a new country and, in many cases, very favourable tax regimes.”
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