Residency and domicile

Paying the right amount

Tax can take many forms in life and can become tricky when it comes to either being a tax resident or a domicile. Each has its own different ways of dealing with tax which can be very confusing.

Our team can explain in full the differences between the two and help you understand when you should be paying your taxes.

Basically, you’re taxed in a country where you’re a tax resident, meaning it is possible to be taxed in two countries. When you have one income taxed in two countries you’ll have to consider the double taxation agreement between the countries. To determine whether you’re a UK tax resident you’ll need to take a statutory residence test (SRT).

If you’re domiciled or deemed domiciled in the UK then you’ll have to pay UK tax on all of your income, no matter where it comes from. If you’re a non-domicile (non-dom), then the UK takes may not be applicable to any income outside of the UK.

Your domicile is your home country, but not necessarily where you were born. You tend to inherit your father’s domicile, with some exceptions.

You want to make sure that you’re doing the lawful thing when it comes to paying your taxes, and thankfully we’re here to clear up any queries you may have.

Get in touch with our team today.