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Posted Mon, 11 Jul 2022 16:01:33 GMT by Damian Wright
I have a few questions in regards of remittance basis. I am considering working on a consulting basis for a South African company, the work will be performed in the UK and would involve software development and consulting over phone. Payment for this work would be made by the South African company to my South African bank account. 1 - If taxed on the remittance basis, my understanding is that the tax on this income will be deferred until I bring the money (or anything purchased therewith) into the UK? 2 - Is national insurance applicable to this income (a) when earned (b) when it is repatriated to the UK (c) not at all 3 - I have a number of investments in South Africa, the way the investments are structured (dividend reinvestment and frequent portfolio changes) creates a mixed fund and thus makes it difficult to separate individual capital and dividend payments (I do receive a detailed summary for tax purposes though) - If employment income is retained in a separate account so that it is fully identifiable, is it permissible to apply mixed fund ordering when reporting on withdrawals from my investment accounts and declare employment income (nominated) when drawn and repatriated from that account? Thanks
Posted Thu, 14 Jul 2022 12:32:33 GMT by HMRC Admin 24
Hi,

Where the duties of the employment are carried out in the UK the remittance basis does not apply.

See the attached links and the table para 6.63. 

Residence, Domicile and Remittance Basis Manual 

Residence, domicile and the remittance basis: RDR1

Thank you.

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