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Topic: Do I need to file UK tax return?  (Read 1220 times)

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Do I need to file UK tax return?
« on: February 16, 2009, 10:42:19 PM »
I am on a 5 month transfer from New York to London for the law firm I work for.  The deal is that I have to figure out my own taxes.  I know it is a bad deal but a lot of lawyers are laid off period so I am happy to have a job.  I get paid from New York office into my New York bank account and I just pull money out of my NY bank account (may transfer to my UK bank account once the bank got it straightened out).  I have investment real estate in the US and I lose money every month (rent collected doesn't cover mortgage).  I rent an apt in NY and pay rent in NY.  I also pay rent for a room in London.  I physically go to work everyday in the London office since early February 2009.  Do I have to file UK tax return in 2009 or I can just file federal and New York tax return and Arizona tax return where my investment properties are?


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Re: Do I need to file UK tax return?
« Reply #1 on: February 16, 2009, 11:33:22 PM »
What visa do you have, as this may affect things.

Vicky


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Re: Do I need to file UK tax return?
« Reply #2 on: February 17, 2009, 12:13:37 PM »
From a UK perspective you are not resident here as you are not in the UK for 183 days in any tax year.

You are still potentially taxable on employment income for work performed here but may be able to claim relief under the tax treaty, depending on several variables.  I suspect that the UK would probably resist a treaty claim based on economic employer, so you may end up owing/paying UK taxes by 31 December 2009 and claiming relief in the US on Form 1116 for 2009.


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