Country of income - how is it defined for online services

[void]

This post Becoming a Digital Nomad - Advice Please mentions that it's significant where is the most of your income coming from. And this note gave me a bit new perspective.
Say I'm sitting in my living room in EU and making money by betting on Asian sport bookmakers and a few licensed in Malta and some in the UK.
Where is my income coming from actually?
Does the answer have any tax-related implications?
Would it help somehow to end my tax residency in EU in the same case if I'd spend more than half a year traveling the world?

 

[JohnLocke]

It doesn't matter where the money comes from or where you sit and do your business. What matters is where you are registered to be tax resident, that's where you have to pay taxes.

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[void]

The post I linked says (not sure if correctly or not) that tax residency is influenced by the fact where the most of income comes from. Hence my question...

 

[Martin Everson]

void said:
Say I'm sitting in my living room in EU and making money by betting on Asian sport bookmakers and a few licensed in Malta and some in the UK.
Where is my income coming from actually?
Does the answer have any tax-related implications?
Would it help somehow to end my tax residency in EU in the same case if I'd spend more than half a year traveling the world?
Click to expand...

Who cares where your income is coming from...lol. Even if income came from planet Mars the tax authority in the country where you are sat is where you will pay taxes unless you are a resident non-domicile for example.

void said:
The post I linked says (not sure if correctly or not) that tax residency is influenced by the fact where the most of income comes from. Hence my question...
Click to expand...

No its not.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[PeterOS]

Martin Everson said:
Who cares where your income is coming from...lol. Even if income came from planet Mars the tax authority in the country where you are sat is where you will pay taxes unless you are a resident non-domicile for example.



No its not.
Click to expand...

Hi, Martin.

If was was to set up an offshore company in the Seychelles, offering an online IT consultancy service and spending no more than 3/4 months in different European countries each year, am I correct in thinking that any tax payments would be payable to the Seychelles?

Thanks for your help.

 

[JohnLocke]

PeterOS said:
am I correct in thinking that any tax payments would be payable to the Seychelles?
Click to expand...

No that is not correct. Actually you will have to resign from your current country in order to avoid to pay taxes there even though you travel as you wrote.

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[PeterOS]

Admin said:
No that is not correct. Actually you will have to resign from your current country in order to avoid to pay taxes there even though you travel as you wrote.
Click to expand...

Hi and thanks for your reply. If I were not in the UK for more than three months for a number of years, would that be considered as resigning from the UK?

 

[Martin Everson]

PeterOS said:
Hi and thanks for your reply. If I were not in the UK for more than three months for a number of years, would that be considered as resigning from the UK?
Click to expand...

Did you inform HMRC or complete a P85 form and let HMRC know you left the UK? In any case you can checkout the UK statutory residency test below.

https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[PeterOS]

Hi, Martin.

Not yet, but I read that people are automatically non UK resident if they spend less than 91 days per year in the UK and are working 35 hours + abroad of which 31 days or less are spent working in the UK.

It also says on the HMRC website ( I think) that if you are non UK resident, you only pay taxes on income earned in the UK (didn't see any mention of 35 + hours).

 

[JohnLocke]

Martin Everson said:
Did you inform HMRC or complete a P85 form and let HMRC know you left the UK? In any case you can checkout the UK statutory residency test below.

https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt
Click to expand...

See that's exactly what I thought would be applicable in the UK as well as most other European countries. Where I live it's very easy, just go online and declare that you are gone, takes 5 min. and you are out.

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[Martin Everson]

PeterOS said:
Hi, Martin.

Not yet, but I read that people are automatically non UK resident if they spend less than 91 days per year in the UK and are working 35 hours + abroad of which 31 days or less are spent working in the UK.

It also says on the HMRC website ( I think) that if you are non UK resident, you only pay taxes on income earned in the UK (didn't see any mention of 35 + hours).
Click to expand...

Follow the guidance given in document above and you will be ok.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.