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Discussion Starter · #1 ·
Hi,

I'm hoping someone can give us some advice on Tax RulesOffshore work.

My husband will be working offshore for an Egyptian Compant so therefore he doesnt pay any uk tax as he works out of the country more than 200 days per year. Does anyone know if this same Tax rule applys in Cyprus.

If not do you know how much tax he will need to pay.

Will we have to find an accountant when we are over there that specialise in this industry if so can anybody reccomend one.

Rgs Lynda & Marc
 

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If you are resident in Cyprus for more than 183 days per year then you would be liable for tax in Cyprus. Cyprus has a dual tax agreement with the UK and providing you match the criteria, you would not have to pay tax in both countries. However just because you are tax resident in Cyprus does not automatically absolve you from tax in the UK and the UK HMRC could decide that you are still liable for tax in the UK, especially if you still have a property or bank accounts in the UK.

If you are liable to tax in Cyprus then the tax free allowance is just under 20000 euros per year.
 

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My husband also works offshore

As long as his salary is in a tax free country or he pays tax in the country he works in and he doesnt spend more than the 183 days in Cyprus he cannot be taxed in Cyprus and the same applies to the uk

We took tax advice when we were last in Cyprus

HTH
 

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My husband also works offshore

As long as his salary is in a tax free country or he pays tax in the country he works in and he doesnt spend more than the 183 days in Cyprus he cannot be taxed in Cyprus and the same applies to the uk

We took tax advice when we were last in Cyprus

HTH
I don't know what the tax laws are for Cyprus, but I have worked with international taxes for a while now. For offshore workers generally, you have to be careful as many countries consider an offshore worker to be "tax resident" wherever his family resides, whether or not he spends 183 days a year with them.

Many people cite the "183 day rule" but that is only one of several factors that contribute toward determination of a person's (or family's) tax residence. Living place of the wife and family, owning a home in the country, being enrolled in the national health system, having bank accounts that are used for day-to-day expenses to maintain the family, etc. etc. All these things contribute to the determination of the tax residence.
Cheers,
Bev
 
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Discussion Starter · #5 ·
Thank you very much for all your replies, this is something we definatly need to look into because we will have a home in the UK as well as Bank accounts.

Philly.... Can you please give me a contact details from who you took advice from if you still have it.

Rgs Lynda
 
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Discussion Starter · #6 ·
Hi all,

Do we need to let anybody know in the UK (HMRC) that we are moving to Cyprus??

Thanks Lynda
 

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Lynda, you should look at the UK HMRC website and also the Directgov website. Both give information about this. They also give you links to forms that you need to complete to tell the appropriate authorities about moving abroad. And don't forget to tell your bank, otherwise they will continue charging interest less tax.

BevdeForges is right, the 183 day rule is just one criteria, just because you live abroad does not eliminate your responsibility to pay tax in the UK.
 
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Discussion Starter · #8 ·
BabsM, Thanks very much we will look at the websites, and we will let the bank know we need advice on banking issues from people like yourselfs but I will read all the other threads 1st incase this answers my questions if not I will post a new thread.

We really need an accountant to help us with our tax issues, can anyone recommend a good one?

Thank you Lynda x
 

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BabsM, Thanks very much we will look at the websites, and we will let the bank know we need advice on banking issues from people like yourselfs but I will read all the other threads 1st incase this answers my questions if not I will post a new thread.

We really need an accountant to help us with our tax issues, can anyone recommend a good one?

Thank you Lynda x
I will look up the relevant forms you need to complete and the websites and send you the info tomorrow.

I do know a tax accountant in Larnaca. Where will you be living?
 
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Discussion Starter · #10 ·
I will look up the relevant forms you need to complete and the websites and send you the info tomorrow.

I do know a tax accountant in Larnaca. Where will you be living?
BabsM,

Thank you so so much would really appreciate it :)

We will be living in Paphos?
 

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And don't forget to tell your bank, otherwise they will continue charging interest less tax.
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As Babs says you need to let your bank know that you are no longer resident in the UK, nor liable for UK taxes, and then they will pay bank interest gross rather than net.

In the long run it won't matter if you don't get around to it; you can ask for any overpaid tax back at the end of the tax year. But if you don't pay it in the first place it is one less job at year end.

The form you need is an R85. You can download it from HMRC here;
http://www.hmrc.gov.uk/forms/R85.pdf

You'll need to complete one for each bank you have accounts with.

Mands
 
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