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SteveNeedsHelp wrote:

Tony, you seem to have some good insights! I work for a UK company and receive a salary but I now live in Portugal and have the NHR.

I don't want to disrupt my UK employer and ideally wouldn't change anything.

Two scenarios I see:
1) work in UK >30 days a and use my UK house, claim still a UK resident - pay tax and nothing changes. 2) apply for the no-tax code with the HMRC, use my tax free salary to pay my Portguese tax every year and hope my employer has no issues with that (but concerns regarding social security etc.)

Any thoughts on keeping a UK salaries job but living in Portugal and benefiting from NHR 20%?

Thanks!

In terms of the nhr, for your UK salary to be tax free in Portugal, it has to incur some effective tax in the UK - due to your personal allowance, unless your salary is above the minimum allowance, spending 30 days in the UK will not cut it. ie if your salary is say only £5000, as this is below the threshold, there would be no effective valid taxation in the UK in terms of the double tax agreement (there are some exceptions to this eg pilots). Note, that if all the work is done remotely ie 100% of the time in Portugal, then it will be subject to tax in Portugal - then the provision of the nhr may come into play - ie'high value added professions' - but in this case, subject to 20% taxes, else according to tax tables

Of course you can claim to be tax resident in the UK - but then you are wasting the provisions of the nhr, and propably run the risk of paying taxes in both countries - in other words, get into a real muddle.

Personally I don't think keeping your home as a base would work - HMRC could argue that your centre of vital interest was still in the UK - see the article  (article 4). If you rented your home and broke your UK vital interests - eg your family / pets etc moved to Portugal, then that should work.

If you apply for the NT tax code, the employer will be advise ie the NT code will be sent to your employer. I suppose that you can (and should) advise HMRC that you are no longer resident in the UK - I do not know if they will automatically issue the NT code if not specifically requested. If you have advised HMRC that your residence is in Portugal, and had withholding tax in the UK, then you can (should) submit a UK return and claim that you were non resident - ie apportion your earnings between  UK residence and Portuguese residence, and if appropriately completed, HMRC should refund you the overpayments. In the meantime you would have to submit the Portuguese tax return - but if you are liable for UK tax (as noted above - carefull - it has to be effective tax), then there would be no Pportuguese tax liability