Avoiding paying income tax

[somersetjedi]

My situation is this: I left a large company in Dec 2003 after 15 years as an employee, sold everything I owned in the uk as I was emigrating to Australia. Recieved a full life visa in Oct 2003. I spent from Dec through to middle of May in France where I rented an apartment, after which I was going to start life in Australia. My old firm then offered a contract for 19 weeks (ending on the 30th September) - 7 weeks of this was back in France which is where I'm presently living. My one way flight to Australia is booked on 6th Oct. My question Do I have to pay tax in the UK for the 19 week period detailed above? I've been told that as I haven't been living there since Dec 03 then I shouldn't have to pay any UK tax, is this correct. (although I worked 12 weeks of the 19week contract in the UK, prior to coming back to France) Kind regards James [email protected]

[kags]

Broadly speaking, if you leave the Uk permanently you stop being liable to UK tax on your worldwide income unless you return for half a tax year or 3 months a year on average. However, you never stop being liable to UK tax on your income from the UK. Depending on where you are treated as resident for tax purposes this tax year, you may claim under a Double Taxation agreement between the UK and that country to avoid being taxed in both countries. These agreements are mind-numbingly dull pieces of legislation, but they are written, by and large, to ensure you are taxed at the UK rate of tax as a minimum. You need to take professional advice about this, because the whole area is extraordinarily complicated, and it needs to be established exactly where you are resident for tax purposes this tax year. My own feeling is that you are liable to UK tax on the earnings for the 12 week period you were working in the uk.

[kags]

By the way, were tax and national insurance contributions deducted frommyour salary from the UK company?