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Pelmen
04-12-2013, 16:18
If a UK citizen works in Russia and spends more than 183 days in Russia - he pays 13% tax. I heard that HMRC considered introducing a law, that this person will have to pay to the UK the difference between lower tax and the UK tax. Has this law been adopted?

penka
04-12-2013, 16:39
If a UK citizen works in Russia and spends more than 183 days in Russia - he pays 13% tax. I heard that HMRC considered introducing a law, that this person will have to pay to the UK the difference between lower tax and the UK tax. Has this law been adopted?

Talk to your local tax authority and ask if they passed the law on double taxation. If not and you make your money in RF, you pay RF taxes only. The Revenue people might try something just like our Swedish Skatteverket did, but they got away with nothing:D

Hans.KK
04-12-2013, 19:30
You may want to start here: http://www.hmrc.gov.uk/taxtreaties/

You may end up finding this: http://www.hmrc.gov.uk/taxtreaties/in-force/russia-dtc.pdf

Here they may be able to answer you question: http://www.justanswer.com/uk-tax/

When all is said and done, do not rely on random people from the Internet when it comes to taxation, ask Her Majesty Tax collectors, even if it hurts you to do so, ask them (or pay a lawyer to advise you)

tonytony
04-12-2013, 21:27
If a UK citizen works in Russia and spends more than 183 days in Russia - he pays 13% tax. I heard that HMRC considered introducing a law, that this person will have to pay to the UK the difference between lower tax and the UK tax. Has this law been adopted?


As with all things, the answer is complicated.

If you are leaving the UK with the intention of taking up a full time job in Russia then you can get what is called ''split year'' tax treatment so you are counted as being non-resident from the time you first move abroad. This can mean that you get a tax refund from HMRC at the end of the year - this will depend on how much you earned in the UK before moving abroad.

Just google the term ''split year treatment'' and you'll find lots of information on this. This only applies to the tax year in which you first move abroad.

http://www.hmrc.gov.uk/international/rdr3.pdf

The HMRC document linked to above gives all the details, but it is rather complex. This is a simpler introduction:-

http://www.shipleys.com/resources/cu...issues/tax/SRT




The other thing that you will need to be aware of is the new Statutory Residence Test that came into effect earlier this year.

It is quite easy now to be caught by the new rules if you still have a home and family/minor children in the UK, especially if you are in the UK for at least 45 days per year.

I really would strongly suggest that you check your situation. Here is some more info on the situation:-

http://www.accountingweb.co.uk/artic...plained/544622

http://www.kpmg.com/UK/en/IssuesAndI..._21May_acc.pdf

Pelmen
05-12-2013, 01:35
Thanks for your replies. At the moment I am only considering whether to move to Russia or not. If I do so, it will be in April and it is very unlikely that I will come to the UK for more than 45 days, as my family will travel with me.