OP MacAindreas 1 | 21
19 Jun 2022 #31
Hi @HAL9009. Thanks for sharing your experience. Lots of similarities actually. Can you elaborate on the 183 nights in UK, not sure I understand the benefit of it.
From Hertfordshire, UK to Śląskie, Poland - Are we crazy?
183 nights in UK will ensure that you keep your UK tax residency status.
OP MacAindreas 1 | 21
21 Jun 2022 #33
Is it preferable to keep the UK tax status?. I haven't done the maths but the tax rates look more favourable in Poland especially in the upper bands. The UKs tax year runs differently to Poland adding another layer of confusion. Will have to get some tax advice I think.
Is it preferable to keep the UK tax status?
Usually yes, and far more straightforward to file returns.
If you have legal residency or your "centre of interests" is deemed by the Urząd Skarbowy to be in Poland, they will insist you do a return there. If you don't have Polish residency or citizenship, think about entering/leaving Schengen via airports outside Poland. The meaning of the term "centre of interests" has been discussed in threads here and should be easily findable by doing a search.
I think you definitely should get tax advice, from a Polish tax accountant.
And if you are going to transfer tax residency, I think it would be better to do it from Jan 1, Polish tax year, rather than April 6, UK tax year.
You won't be double taxed as there is a tax agreement between UK and PL, but filing a tax return in PL is more complex than in UK, and you will be expected to do it in Polish, or pay an accountant to do it for you.
Also, if your income is UK-based and you retain your UK tax residency, it is less likely that you will be taxed in PL. However, if you engage in business when in PL, that business/employment activity may fall under PL tax jurisdiction and you may need to make a return in both countries.
There is also the notion of VAT to consider - depending on the nature of your work, you might be required to register for Polish VAT, as the registration threshold may be zero if you are based outside the country but engaging in business inside the country.
And if you are going to transfer tax residency, I think it would be better to do it from Jan 1, Polish tax year, rather than April 6, UK tax year.
You won't be double taxed as there is a tax agreement between UK and PL, but filing a tax return in PL is more complex than in UK, and you will be expected to do it in Polish, or pay an accountant to do it for you.
Also, if your income is UK-based and you retain your UK tax residency, it is less likely that you will be taxed in PL. However, if you engage in business when in PL, that business/employment activity may fall under PL tax jurisdiction and you may need to make a return in both countries.
There is also the notion of VAT to consider - depending on the nature of your work, you might be required to register for Polish VAT, as the registration threshold may be zero if you are based outside the country but engaging in business inside the country.