Remote Worker Tax

jjstones19 wrote:

Hello,

I have just moved to Vietnam and am working remotely for a UK company and being paid into a UK bank account. I will be living here permanently.
My husband is a teacher here and I'm here on a dependant TT visa.

When leaving the UK I was told by my accountant that I should be paying tax here in Vietnam as its where I am a resident. I informed the UK revenue and customs of this and am no longer paying tax in the UK.

However once I arrived here, I have tried to speak to a lawyer and accountant about paying tax here- but the lawyer almost laughed when I suggested paying tax here! He said it was a bad idea to let the Vietnam govt know I am working here (although I believe it is allowed on my visa)

I'm now very confused about what to do, I don't want to get in trouble with either government.
If anyone is in a similar situation I would love to hear from them - any advice welcome! I don't even know what type of "expert" I could contact for formal advice..

Thanks,

Jennifer

My take on UK non resident status based from long experience working as an expat & non resident ...........no matter where you live in the world, if you have income generated in UK from a UK or international based company & paid into a UK or any other bank account you are due tax to HMRC on your UK generated income. If your income is generated outside the UK but you bank it in UK then no tax due on income but tax is due on any interest earned. NOTE I EMPHASISE UK GENERATED INCOME. If you are registered as a UK non resident for tax purposes any income generated overseas HMRC dont want to know about it.
By the way there are also time limits to gain UK non residency for tax purposes, so if you for example return to live in the UK after say 1 year you will have to pay tax on any income you have earned even overseas unless you can prove tax payment to a country UK HMRC has a reciprocal agreement with.
Most people when they go to live overseas inform HMRC in Newcastle of their non residency too. Its all there in Black & White on HMRC web site!

This may help.

Tax

Hi Jennifer,

Hope you are well?

I was wondering if you made any progress with your situation? Myself and my wife are in the exact same situation and nobody seems to be able to help.

I am employed by a local company in Vietnam with a work permit, TRC etc. My wife is on a dependant TT visa and works remotely for a UK company and continues to get paid into a UK account.

She's filled out a P85 to notify HMRC that she is no longer a resident and will not pay UK tax. We can't really seem to find out any solid information about her paying Vietnamese income tax.

Just curious to see if you'd found an answer yet!

Thanks,

Joe

Joe Pearce wrote:

Hi Jennifer,

Hope you are well?

I was wondering if you made any progress with your situation? Myself and my wife are in the exact same situation and nobody seems to be able to help.

I am employed by a local company in Vietnam with a work permit, TRC etc. My wife is on a dependant TT visa and works remotely for a UK company and continues to get paid into a UK account.

She's filled out a P85 to notify HMRC that she is no longer a resident and will not pay UK tax. We can't really seem to find out any solid information about her paying Vietnamese income tax.

Just curious to see if you'd found an answer yet!

Thanks,

Joe

She's filled out a P85 to notify HMRC that she is no longer a resident and will not pay UK tax. We can't really seem to find out any solid information about her paying Vietnamese income tax.       

I have been registered & with a letter from HMRC as non resident in UK for tax purposes since 2008. However all income generated in UK including my pensions are taxed at 20% after my allowance of 12,500 gbp. You can be living anywhere in the world but as far as income generated in UK you are liable for tax on it unless there is a reciprocal tax agreement between UK & where you are living & you can prove you are paying tax on that UK generated income to the country you are living in.

Thanks for your speedy reply.

This is the problem we are facing, everybody seems to be in a slightly different situation which results in a slightly different outcome. My wife's company have said she will stop paying UK tax after she becomes a resident for tax in Vietnam (after 183 days). The original post has also said that she is no longer paying UK tax. Maybe the situation is different for pension income?

Your reply is much appreciated, any advice or insights are welcome!

Thanks,

Joe

Joe Pearce wrote:

Thanks for your speedy reply.

This is the problem we are facing, everybody seems to be in a slightly different situation which results in a slightly different outcome. My wife's company have said she will stop paying UK tax after she becomes a resident for tax in Vietnam (after 183 days). The original post has also said that she is no longer paying UK tax. Maybe the situation is different for pension income?

Your reply is much appreciated, any advice or insights are welcome!

Thanks,

Joe

Evening Joe, No difference between pension or working all same. Any income earned from work in UK,   interest earned in UK bank, profits from investments earned in UK etc are subject to UK tax no matter where you live in the world & I even pay 20% tax on the 4 properties I rent out.
But the critical thing is my statement on the reciprocal tax treaties between UK & other countries & Vietnam has one, see link below. So as her company states when she is registered for tax in Vietnam then as long as you have a certified tax paid document from Vietnam you are covered & I suspect she will have to fill in a self assessment form HMRC & provide evidence of tax paid. But there is a catch, if the income tax rate in Vietnam is less than in UK she will be taxed on the difference.

https://www.gov.uk/government/publicati … x-treaties

goodolboy wrote:

Joe Pearce wrote:

Thanks for your speedy reply.

This is the problem we are facing, everybody seems to be in a slightly different situation which results in a slightly different outcome. My wife's company have said she will stop paying UK tax after she becomes a resident for tax in Vietnam (after 183 days). The original post has also said that she is no longer paying UK tax. Maybe the situation is different for pension income?

Your reply is much appreciated, any advice or insights are welcome!

Thanks,

Joe

Evening Joe, No difference between pension or working all same. Any income earned from work in UK,   interest earned in UK bank, profits from investments earned in UK etc are subject to UK tax no matter where you live in the world & I even pay 20% tax on the 4 properties I rent out.
But the critical thing is my statement on the reciprocal tax treaties between UK & other countries & Vietnam has one, see link below. So as her company states when she is registered for tax in Vietnam then as long as you have a certified tax paid document from Vietnam you are covered & I suspect she will have to fill in a self assessment form HMRC & provide evidence of tax paid. But there is a catch, if the income tax rate in Vietnam is less than in UK she will be taxed on the difference.

https://www.gov.uk/government/publicati … x-treaties

Always consult with a tax professional in the country where there is a tax question. Getting opinions here is NOT the way to go.

goodolboy wrote:

drutter wrote:

Hello, Joe Pearce

    My Vietnamese wife and I came across your message concerning taxes here in Vietnam. My wife has a BA in accounting and worked for an international brewery as the head accountant out in D1.  She feels confident that she can help you out and asked me to give you her contact number for Zalo.
  I have sent you a private message. If you still want to talk with someone you may contact her on Zalo.

Oh what a surprise, last I heard your wife was selling Health Insurance!! Seems like she has her fingers in a few pies!

As are most Vietnamese in Vietnam.

As I pointed out only 3 days ago many new members & VN members, read this site they come on for insight and help about Vietnam.

They do not come one to see us fight like cats and dogs about trivial BS and bad blood gathered over many moons.

Members complain about being "over policed" best not to give admin any reasons to step in over posts.

River Frogs wrote:

C'mon folks. This thread quickly went south after the first few comments. Clearly, tax issues are real. Unfortunately, no knowledge was gained in this tread. I thought I must have missed something but after a few seconds of thought, I realized I hadn't. Possibly one worthy mention, 'contact a tax professional.'

contact a tax professional..................but forgot to mention a tax professional who understands UK tax laws & Vietnamese tax laws there's a big difference. After all the original post is from a UK ex pat.

@ Digga  Howz sunny brisvegas?

Hello,

Please note that we had to remove some posts from this thread.

Kindly avoid being off-topic, and as for promoting one's services (which the code of conduct does not allow), it is better to list them in the appropriate section: Vietnam business directory.

Thank you.

Diksha
Expat.com team

Hello everyone, I will be in the same position as of early next year and am wondering how this will shape up. I am hoping to be working in Vietnam remotely for my UK employer and intend to declare myself a non-tax resident in the UK. Will this mean that my employer will pay me a net income and I must self declare in Vietnam? Any insights would be greatly appreciated!

If you're working for a UK company and are paid into a UK bank account, then surely you would continue to pay tax in the same way that you would if you were still located in the UK; whether that is via PAYE or through a self assessment tax return. The fact that you are physically located in another country, does that matter? I worked for British Telecom in the UK and spent alot of time working in the US but I was still being paid by BT Plc in UK and into a UK bank account, paying UK tax via PAYE.

The reason i was looking at this thread was that my daughter is currently in Vietnam and is looking to do some short term work (virtual assistant or something like that), being paid in Sterling into a UK bank account and therefore subject to UK tax. Is that not right?

If you're working for a UK company and are paid into a UK bank account, then surely you would continue to pay tax in the same way that you would if you were still located in the UK; whether that is via PAYE or through a self assessment tax return. The fact that you are physically located in another country, does that matter? I worked for British Telecom in the UK and spent alot of time working in the US but I was still being paid by BT Plc in UK and into a UK bank account, paying UK tax via PAYE.
The reason i was looking at this thread was that my daughter is currently in Vietnam and is looking to do some short term work (virtual assistant or something like that), being paid in Sterling into a UK bank account and therefore subject to UK tax. Is that not right?
-@alanmbell

exactly right, does not matter where you live, any money earned through employment in UK, gained through investments in UK ( but not ISA type tax free investments), gained through property rental in UK is liable for UK tax no matter where you live. I live in Vietnam & legally registered as "Non Resident" with HMRC but pay UK tax on my private pension which is UK based, pay UK tax on my UK based investments & pay UK tax on my UK property rentals. As a UK citizen but recognised by HMRC as "non resident" you are not liable for any money earned outside the UK. Any money earned outside UK while being recognised by HMRC as "non resident" but paid into a UK bank account is liable for tax on the interest.

But remember you only pay tax on earnings over 12,570 gbp which is the current UK tax allowance.