Hi

I am looking to move to Cambodia for a school year to teach in a local school. I am looking into double tax and how getting paid will work once i want to return to the UK.

I will only be out there September-July, so this isn't a full tax year.

Does anyone have any advice on how its best to deal with getting paid/taxed in Cambodia and taking this money back to the UK legally but trying to reduce the amount of tax paid.

Thanks

lorna.illingsworth wrote: ↑Tue Sep 08, 2020 12:51 am Hi

I am looking to move to Cambodia for a school year to teach in a local school. I am looking into double tax and how getting paid will work once i want to return to the UK.

I will only be out there September-July, so this isn't a full tax year.

Does anyone have any advice on how its best to deal with getting paid/taxed in Cambodia and taking this money back to the UK legally but trying to reduce the amount of tax paid.

Thanks

I took all my earned (net of tax) money back to UK with no issues. Sent it all back by bank transfer. Never been asked a question. Nor the 10+ years of Middle East income previous to that. It might not be entirely right, but I’ve never had an issue.

Sorry, to add, I registered non-resident non-dom too.

AFAIK there is no double taxation agreement with the UK. It sounds as if you will not be away long enough to move your tax domicile out of the UK and would theoretically be liable for both sets of taxes.
What does your accountant say?

Currently Cambodia does not have a DTA with the UK.

https://www.gov.uk/tax-uk-income-live-abroad
Theoretically, yes, you do have to pay tax on income here unless you are non-resident. In the first tax year you might just be able to claim non-residency, but if you go back to the UK in July then the second tax year you won’t.
It also depends if you are working the rest of the time in the UK, if not then your salary at a local school may not reach your tax free allowance.
As to the real world situation, it depends on things such as how formal your employment at the school is (many still pay in cash) and the likelihood of HMRC being able to get any information from them in the rare event that they checked up, assuming you had actually told them you were working rather than on holiday or volunteering.
Not that I am condoning or encouraging any form of tax evasion just for the record!