No worries, I won't do anything unless 100% sure.
That's why I am here (and few other forums) - to listen different opinions and find out the truth.
Tier 2 General must be PAYE there are no ifs or buts on that score.
That's correct, no one denies it.
There is no tax relief because you are an overseas migrant. For tax purposes under Tier 2 your are a domicile because if you were anything else you can't be a tier 2 general visa holder.
It might be correct, but do you have anything to prove this statement? Even the smallest clue is fine.
Here is the HMRC guide on residence and domicile:
https://www.gov.uk/government/uploads/s ... ttance.pdf
I read it thoroughly and I could not find anything regarding to visas and immigration. In fact, there are 0 instances of word "Tier" in this document and only 2 instances of word "visa" (in tax residence test section).
This guide mentions that "domicile" is the term of general law. It is different from nationality and residence. The only specific thing relevant to tax law is the recent introduction of "deemed non-domicile status". Basically it means that individual cannot claim non-dom status for tax purposes after 15 years of continuous residence.
Your point on owning your own company etc. Yes technically possible, never yet seen it achieved whiteout working in breach. The rules are so precise on following the exact SOC and job role it is virtually impossible to stay within the rules.
That's exactly what I thought. How one can satisfy the SOC code requirements while being a director? I'll try to learn more about it and (ideally) find a few people who do this already.
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I think the OP is confusing what a non-dom is about. He is thinking that since his country of origin is diff, he can do other investments, make profit and not pay tax on it, while at the same time continue paying paye.
Again, why not?
If you have anything proving it's not possible - I would be happy to look through evidence and agree with you. No sarcasm here.
Just a clue for you, there are about 10k non-dom people in the uk, with people of nationality other than british in millions.. Make a guess why others are not going down the route of non-dom, and trust me when i say, there are hundreds of thousands of non-brits who have a lot of money with owning just their own business and not working paye.
There are more than 100k+ non-doms in UK, according to Telegraph.
http://www.telegraph.co.uk/news/general ... rkers.html
I also saw more recent statistics obtained with help of Freedom of Information Act. I'll find it if necessary.
Why most of eligible people are not going the non-dom route? That's easy:
- 1) If you have the center of your life in UK - it does not give any benefits. You'll be taxed on the moment of remittance of income to UK.
2) If your foreign income is relatively low - it does not provide benefits too. You lose the Income Tax and Capital Gains Tax allowance in UK when you claim the remittance basis. You need at least 10-20k pounds of income overseas to make it worth it.
3) After 7 years of residence you need to pay a charge if you want to claim the remittance basis. It is whooping 30-50-70k per year. Foreign income should be really high to justify this charge.
4) There is such thing as "automatic remittance basis". A lot of people are using it, not declare it and are not aware of it.
Look here:
9.15 If your unremitted foreign income and gains arising or accruing in the tax
year are less than £2,000, you can use the remittance basis without having to
complete a Self Assessment tax return. In this case you will:
be automatically taxed on the remittance basis (unless the rules at
paragraph 9.11 apply)
retain your entitlement to UK Personal Tax Allowances and to the
annual exempt amount for Capital Gains Tax
not have to pay the Remittance Basis Charge (RBC) if you are a longterm
UK resident
Basically it means that if you are non-dom, got less than 2000 pounds income outside of UK and did not remit it to UK - HMRC won't chase you.
