Repeal the 91 day tax law

The UK has in a place, with a great many foreign nations inc EU, a 'double taxation agreement' of 183 days. This effectively means that if you are in the UK for 183 days or more then you pay UK income tax and vice versa – and do not have to pay income tax  in both countries.

The last government introduced the 91 day tax rule, which means that if you are in the UK for 91 days or more per year, averaged over 4 years, you are liable for UK income tax, irespective of whether you have paid income tax in another country, based on the 183 day rule.

So for me this means that as I work for a european based company and that as I am in my country of work for more than 183 days per year, that I pay my Income tax in the country of employment (of which is the intention of the 183 day rule). However I cannot reside in the UK for my days off as this would be more than the 91 days and then I would have to pay income tax again in the UK.

 

Why is this idea important?

The UK has in a place, with a great many foreign nations inc EU, a 'double taxation agreement' of 183 days. This effectively means that if you are in the UK for 183 days or more then you pay UK income tax and vice versa – and do not have to pay income tax  in both countries.

The last government introduced the 91 day tax rule, which means that if you are in the UK for 91 days or more per year, averaged over 4 years, you are liable for UK income tax, irespective of whether you have paid income tax in another country, based on the 183 day rule.

So for me this means that as I work for a european based company and that as I am in my country of work for more than 183 days per year, that I pay my Income tax in the country of employment (of which is the intention of the 183 day rule). However I cannot reside in the UK for my days off as this would be more than the 91 days and then I would have to pay income tax again in the UK.