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Posted Thu, 20 Jul 2023 10:17:30 GMT by
I'll be moving to a country that has a double-taxation agreement with the UK. I'd like to keep my payroll in the U.K. which means that I'd continue to pay my National Insurance contributions whilst on a NT tax code. The income tax rate of the country I'm moving to is 10% while my tax rate in the U.K. is 20%. According to the U.K. government's website https://www.gov.uk/tax-uk-income-live-abroad/taxed-twice "If the tax rates in the 2 countries are different, you’ll pay the higher rate of tax." So, does that mean that I'd still be paying my U.K. tax rate instead of the lower one offered by the country I'm moving to? If so, that doesn't make sense, so if you could please clarify that'd be greatly appreciated!
Posted Thu, 27 Jul 2023 11:07:20 GMT by HMRC Admin 25
Hi flaccus,
NT tax code ensures that no tax is deducted from pensions or employment.  
As every double taxation agreements is individual to each country, we cannot answer your question, as the answer would depend on the country in question.
If you do not need to complete a tax return, you should submit online form P85.
If you do complete a tax return, you should also complete SA109 (residence) and HS304.
Non-residents tax relief under double taxation agreements (Self Assessment helpsheet HS304)
Thank you. 
Posted Mon, 31 Jul 2023 10:33:06 GMT by
I appreciate your reply but unfortunately it doesn't answer my question. I'm asking specifically for clarifications on what's written on this U.K. government's webpage: https://www.gov.uk/tax-uk-income-live-abroad/taxed-twice It says: "If the tax rates in the 2 countries are different, you’ll pay the higher rate of tax." Could you please clarify whether that means that if the country I'm going to (Italy) offers a lower rate of tax (10%), I'd be taxed the U.K. tax rate (20%) because it's higher? Even though I'd be on a NT tax code?
Posted Fri, 04 Aug 2023 13:11:30 GMT by HMRC Admin 5 Response
Hi flaccus

Regardless of what your home country decides, if you are resident in the UK, you will need to review UK residence rules, to work out how the UK regards your residency.  
We are not able to make this decision for you, which is why we refer you to the guidance.  You need to submit a self assesment tax return to claim split year treatment.

Thank you
Posted Sun, 08 Sep 2024 21:16:20 GMT by lokafor
I am a UK citizen, left the UK in August 2023 to live and work in the US (permanent resident since August 2023) I rent out my UK home. From the info in this thread, I think I need to complete the forms: SA100, SA105 (property) and the SA109 (residence) - Do I also need to complete the P85? - Are there any other forms needed? Thank you!
Posted Fri, 13 Sep 2024 13:39:48 GMT by HMRC Admin 32 Response
Hi,
You are now classed as a non resident landlord so a tax return is required. You do not need the P85.
Tax on your UK income if you live abroad
Thank you.

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