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Topic: Other Expat Benefits  (Read 1478 times)

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Other Expat Benefits
« on: September 07, 2005, 07:34:28 AM »
I’ve done a little homework looking through previous threads and trying to read the government publications out there, but I’m completely confused.  Here’s a situation that I’m looking for a little guidance on:

I’m a US Citizen going to live in UK to work for US company (remain on US Payroll, etc.) and my intended stay is two years.

Part of my compensation package includes things like home visit trips, home furniture storage, housing, transportation and a goods & services differential, shipment of goods, etc.

How much of that is taxable in the UK?  Is it just my salary & bonus?  Is the $80K exclusion applied just against the salary (which won’t be over $80K), or on the combined value of all the other ‘stuff’?

Any help is much appreciated.


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Re: Other Expat Benefits
« Reply #1 on: September 07, 2005, 07:43:26 AM »
I don't think you would have to pay any UK taxes as you are on your company's US payroll and  you wouldn't be domiciled here either. 


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Re: Other Expat Benefits
« Reply #2 on: September 07, 2005, 08:39:58 AM »
although you don't be domincled, you will be a resident (as long as you're physically in the country for over 180 days a year).  funds that you remit to the UK may be subject to UK tax.
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Re: Other Expat Benefits
« Reply #3 on: September 07, 2005, 08:59:46 AM »
Yep, I'll be in the country the whole time.  As I understand it, I will be subject - I just don't know how much applies & where, etc.


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Re: Other Expat Benefits
« Reply #4 on: September 07, 2005, 09:48:46 AM »
Your company should be paying for the cost of your tax return as part of the benefits package.  They'll have taken care of what is taxable and what isn't.

If they aren't, see a UK tax accountant.  The UK tax accountant will ensure that nothing is taxed that shouldn't be taxed.  Many items are not hard and fast.  For instance, housing is sometimes exempt, sometimes not, depending on how it's paid.

The $80,000 exclusion is American, not UK.  As long as your remittances to the UK are less than your gross salary (i.e., always leave a bit behind in the US), the UK won't tax you on any income other than your salary and taxable benefits.  You even qualify for a special tax break for workdays spent outside the UK.
Liz Z i t z o w, EA
British American Tax


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