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Insights from Zahra Kassamali of TaxPI

Insights from Zahra Kassamali of TaxPI

In our recent podcast episode, our CEO Pali spoke to Zahra Kassamali from TaxPI, a renowned tax consultancy in London, about the intricacies of tax advice.

In our recent podcast episode, our CEO Pali spoke with Zahra Kassamali from TaxPI, a renowned tax consultancy based in London, to discuss the complexities of tax advice. The conversation shed light on crucial topics for individuals and businesses dealing with tax matters, particularly in the context of relocating to Dubai or managing UK tax affairs. Here is a summary of the key points from our conversation.

Tax rules for non-residents in the UK

Navigating the UK’s non-resident tax rules can be challenging. While general guidance suggests that spending fewer than 90 days in the UK per year helps to maintain non-resident status, individual circumstances vary. Factors such as employment, family ties and previous residence in the UK can affect residency status. Specific tests and ties must be considered to accurately determine someone’s residency status.

Real Estate and Taxes

For individuals or companies owning property in the UK, tax remains a crucial consideration. Regardless of residency status, property in the UK, whether residential or commercial, is subject to UK tax. This rule applies to both personal and business property, highlighting the importance of understanding tax obligations relating to property.

Distinguishing tax evasion from tax avoidance

It is essential to distinguish between tax avoidance and tax evasion. Tax evasion is illegal and involves the deliberate falsification of information to evade tax liabilities. On the other hand, tax avoidance uses legal methods to reduce tax liabilities. Understanding these differences helps to ensure compliance with tax laws while taking advantage of legitimate tax saving opportunities.

Business Owners and Taxes

For business owners relocating to Dubai, UK tax obligations may still apply, particularly if they continue to work in the UK or receive salaries from UK-based entities. However, if structured correctly, dividends from companies in Dubai can be exempt from UK tax. Good planning and advice are essential to navigate these complexities.

VAT for online services

VAT regulations for online services can be complex. Different rules apply depending on whether the content is pre-recorded or live, and whether the customer is VAT registered. Businesses providing digital services need to carefully consider these factors to ensure VAT compliance.

Management and control of companies – possible solutions

The location of a company’s central management and control can determine its tax liabilities. Even if a company operates in another country, the location of its management can affect where it is taxed. This is especially important for companies with international operations.

Clawback Rules

Returning to the UK within five years of leaving can trigger clawback rules, potentially leading to additional taxes on dividends or capital gains earned abroad. Being aware of these rules helps individuals and businesses plan their tax affairs more effectively.

Summary

Our conversation with Zahra highlighted the importance of careful planning and documentation when managing tax residency, particularly for those moving from the UK to Dubai. Consultation with experienced tax advisors is crucial to ensure compliance and optimise tax strategies.

For more personalized advice on tax residency and business structuring, consider reaching out to tax professionals who can guide you through these complex matters. Proper planning today can help you navigate the tax landscape more effectively and avoid potential pitfalls.

Please feel free to contact Strive Consultants. They will be happy to help you make well-considered decisions and optimize your financial strategy.