Korean Job Discussion Forums

Christinateacher · Joined: 05 Dec 2007

I taught in Korea from Sep '06-'07 and since returning to the UK I have had to complete a self assessment tax form. For the tax year beginning Apr '06 I worked in the UK until Aug '06 and they are classing me as a UK resident for the full tax year.
I have now been told that I will have to pay tax to the UK for the months I was in Korea because the Korean tax rate is not high enough to offset it.

Has anyone else had any similar experiences to this? Can anyone offer any advice?
I plan on returning to Korea as soon as I get the long awaited E-2 visa, is there anything I can do to avoid this nonsense next time around?

fromtheuk · Joined: 31 Mar 2007

Have you phoned the tax office people to explain the full story to them?

If they stick with the original answer, it's just one of those things I suppose. It's a bit stupid really.

If they still say you have to pay tax for that year, I have some sound advice for the future.

Work in Korea for the rest of your life! I intend to return home during the 2 week renewal period, but I don't think I will work in the U.K. in the near future, unless this easy job opportunity in Korea ends.

Christinateacher · Joined: 05 Dec 2007

It is stupid isn't it?! The worst part is my boyfriend and two of my friends left the UK at the same time and returned the same time as me.
They have had none of this nonsense!

I think I will stay in Korea forever, if I ever get there!

xanderspuppy · Joined: 01 Dec 2006

I was thinking of going to Korea last October then read about the double tax thing and decided to hold off til March. Although on the phone I was told they may deduct the tax I paid in Korea from what I would have paid had I been in the UK and I'd pay back the difference, I have read this:

http://www.hmrc.gov.uk/pdfs/ir20.htm#double

"List of the UK's double taxation agreements

9.16 Countries with which the UK has double taxation agreements in force covering taxes on income and/or capital gains (other than limited agreements concerned solely with air transport and shipping) at October 1999 were as follows.."

Korea is on the list, so you may be able to see if that helps you any. It's worth getting in touch with them anyway to see.

Did you tell anyone like the job centre that you'd been working abroad? Do you know why they may have found out about you but not your friends?

Christinateacher · Joined: 05 Dec 2007

thanks for your help

I don't fully understand everything, but I am going to see Citizens advice tomorrow.
Hopefully the tax man has made a big mistake.

nobbyken · Joined: 07 Jun 2006 Location: Yongin ^^

I declared myself NON-Resident with a form I got from the Inland Revenue . Go to the website, and find your local office. I can't remember if I printed of the form or it was mailed to me.

Christinateacher · Joined: 05 Dec 2007

Thanks everyone,

I finally got someone to explain things to me:
You are only classed as non-resident if you are out of the UK for a full tax year (April-April) OR if you return to the country after April for less than 183 days.

I unfortunately had a job and payed tax with PAYE from April to August (they have a nice paper trail) so they just continue to class me as a resident in the UK. Basically your foreign tax is deducted from the 22% tax they will deduct, so 21% of my monthly wages from September- March will be demanded by the government. As you can imagine I am quite devastated.

I will be taking from the UK's advice and staying in Korea (or at least out of the UK) forever.

Dome Vans · Guest

Sapa · Joined: 05 Nov 2007

How does the British government even know you will be earning money whilst in Korea. The tax has nothing to do with them surely? Its not like there will be a central system that automatically informs the UK of your earnings abroad.
I really think this is a load of crap and you are getting shafted by someone who doesn't really understand. Its absurd, if it was really the case then surely I owe the government some moeny from when I was picking tomatoes in Australia!

Whistleblower · Joined: 03 Feb 2007

The UK Government is the worst tax pirates I have ever known. They don't know anything unless you tell them. There are more people leaving the country due to taxation issues than ever before. The UK is really going down the toilet and I am glad that I abroad.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/12/cnnondom112.xml

Christinateacher · Joined: 05 Dec 2007

When I left my UK job to go to Korea, Imy PAYE tax obviously stopped, some jobsworth somewhere noticed this and sent me a self assessment tax return to complete as they suspected that I was self employed and not declaring anything.
After several phone calls to the tax man while I tried to complete the stupid thing he informed me that I would be classed as a UK resident and would have to pay tax on foreign earnings.
My very small Korean tax payments will offset, but since the tax rate in the UK is 22% I will have to pay about 20-21%

It is not fair but it is unfortunately true.

I am considering making an appeal against it, if CAB will help me. At the moment my plan is to just get my E-2 visa and run away for a while.

Dome Vans · Guest

Sapa · Joined: 05 Nov 2007

I would not be happy with that at all and would fight it any way I could. I still think someone has made a stupid mistake somewhere. Perhaps its worth speaking with an accountant or something? Plenty of people work in Korea and don't get hit with this.
I certainly wouldn't go to Korea if I had to pay UK tax or Korean earnings. Perhaps you could say you just took a gap year travelling? Living abroad for a year non-resident surely?

maddog · Joined: 08 Dec 2005 Location: Daegu

Thank god I haven't worked on-the-books in the UK for a long time. I don't think I even exist over there anymore.

Apparently if I'm off the system for 5 years, my student loan gets wiped. Immoral? Unfair? Free-loading? I've been called all the names, but 18,000GBP is better in my pocket than it is in theirs.

Christinateacher · Joined: 05 Dec 2007

Thanks Dome.
I roughly calculated that it will be about �1200, it has made me quite sick.

I will send my tax return off the day I leave the UK, by the time they get around to hitting me with a bill I will be well away.
I think I will be staying away too. I wasn't too happy back in the UK before the taxman took the pi$$.
Even the new E-2 visa regs were made worse by the stupid UK procedures, 40 days for a police check, 4 weeks for a foreign office stamp unless you go to London and pay the shocking train fares...I could go on forever.

What a country!

I appreciate everyone's posts, it is good to know that I am not the only one who thinks it is a load of sh!t