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Posted Mon, 03 Jun 2024 17:41:20 GMT by Christine Scippo
I am living on a military base in Gibraltar with my spouse who is serving in the British Armed Forces. I have been self-employed in the UK for 15 years. I am a marketing consultant and all of my clients are UK based. I work remotely from our military accommodation in Gibraltar. I invoice my clients and am paid into my UK business bank account. When I arrived in Gibraltar a year ago, I was told by the Gibraltar Government that I had to pay tax and social insurance in Gibraltar. I have since discovered that with a form A1 from HMRC that I do not have to pay social insurance (and am currently awaiting a refund for contributions paid for the last year). My UK accountant informed me that because I am living on a British Military Base that I should continue to pay tax as a UK resident. However, the Gibraltar tax office is insisting that I have to submit a tax return in Gibraltar. I have searched online through the HMRC website but cannot find clarification of this to present to the Gibraltar Tax Office. They have advised me that if I do not submit a tax return I will be fined. I spent almost a year paying social/national insurance in both the UK and Gibraltar and cannot afford to pay tax in both countries too. Please can someone help by sending me links to information that will clarify my position.
Posted Wed, 05 Jun 2024 15:24:43 GMT by HMRC Admin 20 Response
Hi 
As you are working on sovereign territory you are classed as still being in the UK and will only be liable for UK tax.
Thank you.
Posted Thu, 06 Jun 2024 07:38:44 GMT by Christine Scippo
Thank you for your reply. Could you please provide me with a document or link to a web page that states this categorically? I spent an hour on the phone talking to advisors at the HMRC in the UK and have been told that my spouse is the serving military personal and as such continues to pay tax in the UK. However, they told me that as the dependent, I am required to pay tax in Gibraltar. This is very confusing, as I am getting differing opinions from HMRC, the Gibraltar tax office, my accountant etc. I want to ensure that I do the right thing and pay the correct tax - and also don't want to incur fines for getting it wrong - but every department seems to have a different opinion. Many thanks for your help in advance.
Posted Fri, 07 Jun 2024 14:57:46 GMT by HMRC Admin 32 Response
Hi,

A military base is sovereign territory so by you living on the base you are still classed as living in the UK.

Thank you.

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