Comments on: Domicile: misinformation from the profession to protect the wealthy http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/ Richard Murphy on tax and corporate accountability Wed, 03 Dec 2008 22:37:13 +0000 http://wordpress.org/?v=2.6 By: JD http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-372730 JD Thu, 07 Feb 2008 00:02:39 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-372730 This situation is not clear to me. I an a US citizen and work in the UK. When I am in the US I earn a few thousand dollars per year. I have to report this on my US income tax. The US tax on it is lower than the UK tax and a tax treaty exists between the US and the UK. Does this mean that I will have to pay the difference between the amount I am taxed in the US and the amount I would have to pay in the UK? Thanks! This situation is not clear to me. I an a US citizen and work in the UK. When I am in the US I earn a few thousand dollars per year. I have to report this on my US income tax. The US tax on it is lower than the UK tax and a tax treaty exists between the US and the UK. Does this mean that I will have to pay the difference between the amount I am taxed in the US and the amount I would have to pay in the UK? Thanks!

]]> By: John D http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-356965 John D Sun, 20 Jan 2008 14:10:28 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-356965 Richard Thank you very much for that. That put a new light on a whole load of things. Thank you again. I now have a different tax advisor to the one I had when when I wrote my earlier comments. Best wishes. John D Richard

Thank you very much for that.
That put a new light on a whole load of things.
Thank you again.

I now have a different tax advisor
to the one I had
when when I wrote my earlier comments.

Best wishes.

John D

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-356850 Tax Research LLP Sun, 20 Jan 2008 11:24:30 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-356850 John You are missing the seven year exemption period - which is too long in my view, but even I accept the need for a transition period. As such, your comment is wrong. Richard John

You are missing the seven year exemption period - which is too long in my view, but even I accept the need for a transition period.

As such, your comment is wrong.

Richard

]]> By: John http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-356355 John Sat, 19 Jan 2008 23:37:33 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-356355 This change will not just affect the rich foreigners. It will affect every single foreign worker (no matter how rich they are) that is working in the UK. The £1,000 doesn't cut it. Imagine this, a man from the US or another country comes to London to work for 2 years on an average wage. He leaves his home and rents it out while he comes to London and finds some place to rent. Now his income from his own place overseas needs to be declared in the UK and taxed in both jurisdiction. He then has the hassle to actively claim for double tax treaty (IF there is one between the two countries). Am I missing something that this will affect the whole UK market as the finance capital of Europe?? This change will not just affect the rich foreigners. It will affect every single foreign worker (no matter how rich they are) that is working in the UK.

The £1,000 doesn’t cut it. Imagine this, a man from the US or another country comes to London to work for 2 years on an average wage. He leaves his home and rents it out while he comes to London and finds some place to rent.

Now his income from his own place overseas needs to be declared in the UK and taxed in both jurisdiction. He then has the hassle to actively claim for double tax treaty (IF there is one between the two countries).

Am I missing something that this will affect the whole UK market as the finance capital of Europe??

]]> By: African Boy http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-352545 African Boy Tue, 15 Jan 2008 22:52:51 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-352545 Richard I am open minded about the new proposal.. .In your view the extra paper work is justified. Perhaps. My only point was that Andrews was not engaged in misinformation to protect the wealthy. Richard
I am open minded about the new proposal.. .In your view the extra paper work is justified. Perhaps. My only point was that Andrews was not engaged in misinformation to protect the wealthy.

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-352470 Tax Research LLP Tue, 15 Jan 2008 20:25:49 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-352470 John D And I reiterate, you are wrong The credit is for tax already paid on the same source of income Richard John D

And I reiterate, you are wrong

The credit is for tax already paid on the same source of income

Richard

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-352467 Tax Research LLP Tue, 15 Jan 2008 20:18:17 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-352467 There is general concensus that a small di minimis is needed where the rule need not apply I stress small After that - sorry - if you want to live and work here you face the reality of it Seven years living and working here shows a dependence on the state that creates an obligation to the state Perhaps you are overlooking that? There is general concensus that a small di minimis is needed where the rule need not apply

I stress small

After that - sorry - if you want to live and work here you face the reality of it

Seven years living and working here shows a dependence on the state that creates an obligation to the state

Perhaps you are overlooking that?

]]> By: john d http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-352305 john d Tue, 15 Jan 2008 12:22:51 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-352305 Richard Please, reread what I wrote (on 14-Jan-08 at 12:14 pm). Or if I may reiterate: In cases where no Tax Treaty exists, the UK does give "credit" for tax already paid at source, BUT that credit is not against the amount of UK tax assessed, it is granted as an allowance against income that is to be taxed, before UK tax is assessed. This particular way of giving credit for tax paid causes quite a difference in the total amount of tax levied. If you check this (say, by making a specimen calculation) you may then find I that what I originally wrote is true, and not ill-informed, and not misinformation. Best wishes anyway. John D Richard

Please, reread what I wrote
(on 14-Jan-08 at 12:14 pm).

Or if I may reiterate:
In cases where no Tax Treaty exists,
the UK does give “credit” for tax already paid at source,
BUT that credit is not against the amount of UK tax assessed,
it is granted as an allowance against income that is to be taxed,
before UK tax is assessed.

This particular way of giving credit for tax paid causes quite a difference in the total amount of tax levied.

If you check this (say, by making a specimen calculation) you may then find I that what I originally wrote is true, and not ill-informed, and not misinformation.

Best wishes anyway.

John D

]]> By: African boy http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-351962 African boy Mon, 14 Jan 2008 19:47:35 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-351962 I sent an earleir response but it appeasr to have got lost .. shouldn' t type at 3am! The temp workers that Andrews is focussing on are not those who come for 3 years and then leave. He is focussing on low paid workers who come for several months a year every year .. as he says, people who still have small holdings in their country of origin. We are probably talking fruit and veg pickers and such like. Many of them will be caught immediately by the 7 year rule even though no tax worth the name will be involved ... only paper work! I sent an earleir response but it appeasr to have got lost .. shouldn’ t type at 3am! The temp workers that Andrews is focussing on are not those who come for 3 years and then leave. He is focussing on low paid workers who come for several months a year every year .. as he says, people who still have small holdings in their country of origin. We are probably talking fruit and veg pickers and such like. Many of them will be caught immediately by the 7 year rule even though no tax worth the name will be involved … only paper work!

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-351926 Tax Research LLP Mon, 14 Jan 2008 17:51:00 +0000 http://www.taxresearch.org.uk/Blog/2008/01/08/domicile-misinformation-from-the-profession-to-protect-the-wealthy/#comment-351926 John D What you ahve written is not true. The UK always gives credit for tax paid at source and it is never the case that the maximum tax is paid twice. Your comment is ill-informed and is misinformation. Richard John D

What you ahve written is not true. The UK always gives credit for tax paid at source and it is never the case that the maximum tax is paid twice.

Your comment is ill-informed and is misinformation.

Richard

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