| View previous topic :: View next topic |
| Author |
Message |
GB
Joined: 14 Jan 2008
|
 Posted: Thu Dec 10, 2009 3:19 am Post subject: UK Tax |
 |
|
I can't get the search function to work.
Anyone have any good information/their experiences with the UK tax situation recently?
Thanks
GB |
|
| Back to top |
|
 |
discostu333
Joined: 18 Nov 2009
|
| Posted: Thu Dec 10, 2009 5:16 am Post subject: |
|
|
Personally I've never had any good experiences with UK tax. The government take a fat wedge off my paycheque every month and use it to bomb civilians in Afghanistan, or give it to low-life scum in the form of benefits. 
No seriously, what do you actually mean? The tax situation in Korea being a UK national? Pension pay? |
|
| Back to top |
|
|
GB
Joined: 14 Jan 2008
|
| Posted: Thu Dec 10, 2009 9:12 pm Post subject: |
|
|
Well, I actually wanted to know what peoples experiences are. I'm also interested in what they actually told the inland revenue in regards to earning money abroad.
Any advice is welcome. So far I have told them very little.
Cheers |
|
| Back to top |
|
|
BigLarry
Joined: 09 Sep 2009
Location: Anywhere there is wine.
|
| Posted: Fri Dec 11, 2009 6:01 am Post subject: |
|
|
It's easy to sort out but dull as hell.
You just need to fill in the forms that can be found through digging through the HMRC site. You can find the right area of the haystack through these links: http://www.korvia.com/index.php/free-income-tax-for-public-school-teacher.html
If you apply then you can avoid paying income tax in Korea for your first two or three years (forgot the exact number) and as you are unlikely to be earning anything in the UK that means no income tax!  |
|
| Back to top |
|
|
English Matt
Joined: 12 Oct 2008
|
| Posted: Fri Dec 11, 2009 8:57 am Post subject: |
|
|
| BigLarry wrote: |
It's easy to sort out but dull as hell.
You just need to fill in the forms that can be found through digging through the HMRC site. You can find the right area of the haystack through these links: http://www.korvia.com/index.php/free-income-tax-for-public-school-teacher.html
If you apply then you can avoid paying income tax in Korea for your first two or three years (forgot the exact number) and as you are unlikely to be earning anything in the UK that means no income tax! |
I'm uncertain about this. My school made me get the Residency form so that I could show I was resident in the UK for tax purposes. Now, the reason for this exemption is the Double-Tax Treaty which was established to ensure that citizens of one country working in the other would not end up paying income tax in both countries. Now that I'm not paying tax in Korea this does suggest that I should be paying tax on my earnings in the UK.
This is a non-issue if you do not repatriate any money earned here in Korea to the UK, however if you do (from what I read on the HRMC website) and you then return to the UK to work, you could find yourself having to declare what you were up to for the year or two you were away and show your bank statements and pay slips (that's what I had to do when I returned from having lived in Canada for a few years).....in order to sort out your tax situation. This could lead to HRMC clawing back income tax from you for any cash you earnt in Korea and repatriated to the UK.....although they are unlikely to do this (as they didn't do that to me when I came back from Canada) but from the website it looks like they are entitled to do so.
I would suggest that the only way to get around this would be to keep quiet about having been out of the country when you start working back in the UK (if you do) and only start working at the beginning of a new tax year. |
|
| Back to top |
|
|
GB
Joined: 14 Jan 2008
|
| Posted: Fri Dec 11, 2009 5:05 pm Post subject: |
|
|
Thanks guys...interesting to discuss this.
I have been reading on the HMRC website and yes it is correct that they can claim back-dated tax for up to 7 years.
The issue I seem to have seen is that it depends on whether you are resident or not.
Resident means you are likely to pay tax on anything earned or brought back to the UK.
You can be non-resident which makes it likely you won't pay tax.
You are supposed to complete a P85 form before leaving the UK.
I did have a couple of issues with them sending me letter during my previous years here.
I think the best advice would be to tell them very little...but...it would be nice to be fully above board.
Has anyone completed the P85 form and now completes a yearly tax return? |
|
| Back to top |
|
|
GB
Joined: 14 Jan 2008
|
| Posted: Fri Dec 11, 2009 5:10 pm Post subject: |
|
|
BigLarry:
Thanks for the links...I'm a little confused now. If you don't pay tax here and claim residency in the UK, then surely you will be taxed in the UK at some point later in time?
I would prefer to not pay any UK tax seeing as I'm not in the UK.
Have you encountered this or have you just started working in Korea? |
|
| Back to top |
|
|
English Matt
Joined: 12 Oct 2008
|
| Posted: Fri Dec 11, 2009 8:12 pm Post subject: |
|
|
| GB wrote: |
BigLarry:
Thanks for the links...I'm a little confused now. If you don't pay tax here and claim residency in the UK, then surely you will be taxed in the UK at some point later in time?
I would prefer to not pay any UK tax seeing as I'm not in the UK.
Have you encountered this or have you just started working in Korea? |
Your school may well force you to get the residency form. I tried to explain this to my school, and told them that I would prefer to pay Korean income tax as it is lower. However they didn't seem to understand....even though what I was explaining to them was very simple. In the end my handler became aggressive and started shouting at me, so I got the blasted form....thank goodness I'm not moving back to the UK after this; if I did I could be royally screwed. |
|
| Back to top |
|
|
morrisonhotel
Joined: 18 Jul 2009
Location: Gyeonggi-do
|
| Posted: Fri Dec 11, 2009 11:02 pm Post subject: |
|
|
| What have other Brits done about student loans? I can't decide whether to make voluntary payments or not as I'm earning under the threshold. |
|
| Back to top |
|
|
Savant
Joined: 25 May 2007
|
| Posted: Sat Dec 12, 2009 1:45 am Post subject: |
|
|
| GB wrote: |
You are supposed to complete a P85 form before leaving the UK.
Has anyone completed the P85 form and now completes a yearly tax return? |
I completed a P85 form before I came to Korea for the first time. I was able to claim a tax rebate so that is why I did it; not for Korean tax reasons.
When, I returned to the UK earlier this year, I signed on for Job Seeker's Allowance to test the waters of the UK Job Market. It sucked so I came back to Korea. This time, I did not complete a P85 form. My mother used to work in the tax office and she told me I didn't need to do this time. I would be working in a Hagwon again and since I could not claim tax back, there was no need to fill one in as I would be paying Korean income tax.
I'm sure if you don't pay tax in Korea, then Inland Revenue can come after you once you return to the UK and claim residency there.
| morrisonhotel wrote: |
| What have other Brits done about student loans? I can't decide whether to make voluntary payments or not as I'm earning under the threshold. |
On a salary on 2.1 million won, I was paying back 33 pounds a month for my student loan. I thought the threshold was set pretty low so everyone would need to pay back. There is an Overseas Income Assessment form found on the SLC website. They will calculate what you need to pay back monthly after you send the form back to them. |
|
| Back to top |
|
|
morrisonhotel
Joined: 18 Jul 2009
Location: Gyeonggi-do
|
| Posted: Sat Dec 12, 2009 2:41 am Post subject: |
|
|
| Savant wrote: |
| On a salary on 2.1 million won, I was paying back 33 pounds a month for my student loan. I thought the threshold was set pretty low so everyone would need to pay back. There is an Overseas Income Assessment form found on the SLC website. They will calculate what you need to pay back monthly after you send the form back to them. |
Cheers for the info. |
|
| Back to top |
|
|
GB
Joined: 14 Jan 2008
|
| Posted: Sun Dec 13, 2009 1:35 am Post subject: |
|
|
The Student Loans company are really hounding people now to pay back the loan.
Here is the website that lists the thresholds:
http://www.slc.co.uk/thresholds/index.html
It works out at around �30 a month for me.
Re. Tax
Cheers for the info everyone...Savant: So if you didn't complete the form this time...what does the Inland Revenue think your doing? Have they no requested you contact them? |
|
| Back to top |
|
|
timolein23
Joined: 08 Sep 2009
|
| Posted: Tue Dec 29, 2009 10:51 pm Post subject: |
|
|
Ive been here a year and am just about to renew. So far I havent paid any of my loan back. Only now are they demanding I contact them otherwise they will automatically take money out of my account.
on that link it says the threshold is 9,000 pounds and the default payment is 147 pounds. is 147 the minimum?
how come some of you are only paying 30 pounds?
also what happens if i shut down my bank account and pretend it doesnt exist? |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
