When Do I Need International Tax Advice

International tax affects a wide range of different people and businesses. Forms of taxation can range from how much an individual is liable for tax within the UK if they are claiming domicile or non domicile status, through to the amount of capital gains paid by companies. Similarly, those looking to plan their tax through off shore trusts and investments need to be aware of the different contexts and opportunities that should be understood and explored when organizing their annual tax bill. The following list expands on some of these international tax areas:
1 - Individual Liability
Individuals who are registered as ordinarily resident within the UK, or as domiciles who choose the UK as their home for tax purposes, need to know how much income tax that they are liable to pay. Individuals will also have to work out their rate and amount of National Insurance Contributions. Non domiciled and not ordinarily resident individuals also need to work out how much they stand to pay if a proportion of their income is banked within the UK.
2 - Capital Gains
One of the most complex parts of tax legislation, capital gains is an important area to seek advice on. Companies and individuals that are not domiciled in the UK, but receive a certain amount of their income, typically over £2,000, may be liable to pay a regular remittance charge on the capital gains from their business. This charge is typically aimed at higher earners, and can range from £30,000 to £50,000. Advice should always be taken with experts over liability.
3 - Moving Out of the UK
Individuals who are moving out of the UK need to fill out a P85 Leaving the UK form with HMRC, and also need to work out whether their pension payments will be affected by changes in taxation status. Short term work abroad can also affect inheritance tax and National Insurance Contributions, and can result in legal headaches if tax records are not updated.
4 - Studying and Working in the UK
Those moving to the UK to work or study should seek advice from a bank or a financial planning company on how to pay their tax. Issues involved might include registering for a National Insurance number, as well as exploring liability for income tax. Moreover, it is vital that individuals do not become liable for double taxation, as this can cause problems which take a long time to resolve between different tax agencies.
5 - Off Shore Tax Planning
Companies and individuals can legally divert some of their tax burden to offshore tax havens and trusts, which ensure that income and capital gains are not paid out in regular tax. Specialists should be approached about how to set up, or participate in these havens.
6 - Company Ownership
Recent changes in Government regulations over offshore ownership set down rules over what counts as a partial share or directorship, and when an individual or business needs to declare that interest to the HMRC. Knowing when you have to declare is important, so seek advice if in any doubt about liability.

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