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Hoots : Will I be liable for taxes if I work for my co. in India for 3 months while I am with my husband in UK My husband has a temprorary assignment in the UK and I plan to accompany him . My company is open to let me work from - freshhoot.com

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Will I be liable for taxes if I work for my co. in India for 3 months while I am with my husband in UK
My husband has a temprorary assignment in the UK and I plan to accompany him . My company is open to let me work from home but are there any legal or personal tax implications and how long can I work . I will be paid my salary in India


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For information about the UK situation, check the government website at
www.hmrc.gov.uk/incometax/tax-arrive-uk.htm
It all depends on the time. If I read it right (but you should check yourself) you can stay almost six months at a time, but at most 3 months on average over 4 years. Above this limit, you should either avoid the situation, or get professional advice, because things will be complicated.


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The key factors here are

you will be paid salary in India.
The duration of your residence in the UK

You will need to pay tax in the UK only if you live more than 183 days - that too in a tax year. Indian tax system will also classify you as a NR (Non-resident) if you live outside for more than 182 days in a tax year.

In your case, your income will be in India and will stay in India. So there should not be any UK tax until you try and get that money to the UK. I will not go into outlining what if you want to go down that road since it does not apply.

As for tax in India, You will need to pay tax since the source of income is Indian.

Hope this helps.


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Generally all the countries have similar arrangement regarding Income Tax, if you live in the UK for more than you stay in India for a given year then the Indian authorities won't be able to tax you but you might come under the UK Tax Law.


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The finance team from your company should be able to advise you.

From what I understand you are Indian Citizen for Tax purposes. Any income you receive globally is taxable in India. In this specific case you are still having a Employee relationship with your employer and as such the place of work does not matter. You are still liable to pay tax in India on the salary.

If you are out of India for more than 182 days, you can be considered as Non-Resident from tax point of view. However this clause would not be of any benefit to you as are having a Employee / Employer relationship and being paid in India.

Edit:
This is only about the India portion of taxes. There maybe a UK protion of it as well, plus legally can you work and your type of Visa in UK may have a bearing on the answer


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