where to pay tax: resident in Italy, casual/self employed working for uk company?

[harrisons]

I am hoping to do some casual/seasonal work whilst living in Italy and have a company in the UK who are interested in using my skills. The problem I have is where do I pay tax? I called the uk inland revenue and they state that since the work is not performed in the uk they are not interested in taxing me on my income. Having spoken to my accountant here, she states that since the work (mainly computer work) does not actually produce anything for Italy then the Italian tax office will not be interested and told me to talk to uk tax. Also because there is not a registered office in Italy then Italian tax office are not interested. It all seems very odd to me as I would expect to pay Italian tax - can anyone help to clarify the situation for me? I have posted questions on other forums and there seem to be a number of people who have been in the same situation and have not paid any tax!!! luckily I am covered for Italian health care as there is a seperate business (B&B) that I will be declaring income from.

[anne2]

new UK non resident tax guide

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The revenue in April 2008 published a new IR20 Guide to Tax for Non-residents. It is downloadable here. Essential reading for all considering residency in Italy.

http://www.hmrc.gov.uk/pdfs/ir20.pdf


The above link is from a thread in the Legal section - Resident v Non-Resident Taxation ~ hope there is something in the booklet that helps clarify your situation.

~ sorry, have just seen that despite thinking I had included the link to the thread mentioned it did not come through
http://www.italymag.co.uk/forums/leg...-purposes.html

[KarenR]

Originally Posted by harrisons

I am hoping to do some casual/seasonal work whilst living in Italy and have a company in the UK who are interested in using my skills. The problem I have is where do I pay tax? I called the uk inland revenue and they state that since the work is not performed in the uk they are not interested in taxing me on my income. Having spoken to my accountant here, she states that since the work (mainly computer work) does not actually produce anything for Italy then the Italian tax office will not be interested and told me to talk to uk tax. Also because there is not a registered office in Italy then Italian tax office are not interested. It all seems very odd to me as I would expect to pay Italian tax - can anyone help to clarify the situation for me? I have posted questions on other forums and there seem to be a number of people who have been in the same situation and have not paid any tax!!! luckily I am covered for Italian health care as there is a seperate business (B&B) that I will be declaring income from.

I would dispute this as I too work for an English company via computer and most definitely need to pay Italian tax. Like you I produce nothing for Italy and there is no Italian office of the company for whom I work. As I am physically in Italy I must pay Italian tax and INPS. Granted my work is not temporary (or at least I hope not - you never know) but since when does temporary employment anywhere become exempt from taxation?? Hope you get it sorted soon.