British Tax Laws - taxing global earnings of non-citizens (1 Viewer)

[boblarson]

So this:

http://sports.espn.go.com/oly/news/story?id=5373710&campaign=rss&source=ESPNHeadlines

I can't see how a country can tax someone's global earnings just because they earned some money there. It doesn't seem right to me.

Just to put it into perspective, here in the U.S., when I work in Oregon, I get taxed on my Oregon earnings. If I live in Washington and work in Oregon, I get taxed on my Oregon earnings. If I live in Washington and do a job in Oregon and the rest of the year I work in Washington, Oregon taxes me for the work I did in Oregon, but NOT in Washington.

So I can understand it if athletes might not want to compete in Great Britain if they are going to get taxed on the other parts of their earnings as well.

 

[PNGBill]

In the old days the UK only taxed foreign earnings, you if you were resident for a certain amount of days.

While on a P&O ship for a few months in the 70's my income was tax free because the ship never touched the UK.

The British on board were counting the days to ensure they didn't meet the requirement to pay tax when they went home.

Here in PNG a Tax resident has to declare any income they receive from anywhere in the world if the Sum exceeds USD30 (converted).
You can claim any local tax paid but you must declare it - legally, not morally.

Australia has Withholding tax for foreigners which can be an easy way to cover your obligations for an ad hoc income and avoid the paper work of a full tax return. This only applies to Australian income.

 

[GaryPanic]

Bollocks -
as Bolt isn't going to spend more than 30 days at any 1 time in the UK and not more than 3 months in total - he at most will only be tax on the income derived from the UK -
dodge reporting -
His winning are likely to be tax free - but his sponsorship isn't - if he is being sponsored in the UK to run then he can bloody well paid UK tax - as a professional he will be getting top dollar - and for what 10 seconds -
greedy git (fast greedy git)

He has probably got a better offer and is looking for an excuse not to run


Tax rules
Could non-doms find themselves paying tax twice in two countries?
If you have income in one country and are resident in another, you may be liable to pay tax in both countries under their respective tax laws. To avoid ‘double taxation’ in this situation, the United Kingdom has negotiated double taxation treaties with more than 100 countries. Each treaty is called either a ‘Double Taxation Agreement or Convention’, depending on the wording of the treaty.

To avoid double taxation, the original proposals were amended so that the £30,000 charge is now imposed on specified income or capital gains abroad and should be treated as such for the purposes of the Double Taxation Agreements. (This may, however, not apply to certain countries, so it is always best to seek independent advice on your tax status).

 

[statsman]

Bob:
Not really a relevant comparison as you are talking about tax differences between two US states, not two countries. In most places with state/provincial income taxes, you pay the tax based on your place of residence, regardless of where you actually earned it.

Gary is correct. If the two countries involved have a "tax treaty" and you are required to pay tax in the country where you earned the money, you don't have to pay tax in your country of residence.

 

[GaryPanic]

Problem is Bolt probably isn't paying tax - He not a USA citazen is he ...

If I were him I would travel constantly for a year and not pay tax in any of the counties if my domiceled country allowed it ...

 

[gordonf35]

I don't like the way of high income tax, it discourage the effort of people spent on their job because most of their money has given to the government. This is crazy and in uk most people are charged for tax 35% or higher including national insurance

 

[rodmc]

I don't like the way of high income tax, it discourage the effort of people spent on their job because most of their money has given to the government. This is crazy and in uk most people are charged for tax 35% or higher including national insurance

Nope, the average wage in the UK is £26k, which would be in the 20% tax bracket

 

[SteveH2508]

Nope, the average wage in the UK is £26k, which would be in the 20% tax bracket

National Insurance can be about 12% so 20% + 12% ain't far off 35%

 

[rodmc]

National Insurance can be about 12% so 20% + 12% ain't far off 35%

That depends on your tax band, 12% is the flat rate, however after you take earnings into consideration you could be rebated as much as 1.6% so your now down to just over 30.4%, might not seem a lot but over a year...............