Who is actually training journalists about the subjects they write upon? Anyone?
He is expected to make an audacious raid into Labour\’s natural territory by promising a clampdown on so-called "non-doms" – non-domiciled workers who live in the UK but are not registered to pay tax…
That\’s not what a non-dom is. We make two distinctions in UK tax law, between residents and those who are domiciled. Roughly speaking where you are resident is a year by year thing, domicile is a life-long thing (although it is possible to change it). I\’m reasonably sure that we\’ve got this distinction (which I\’m not sure that anyone else really has, at least not in quite the same form) because until the last decade or so it brought more tax money in that it lost. Because you could run off to Monaco or wherever and lose your residency, meaning that you didn\’t pay income tax in the UK, but your domicile was much more difficult to shake off and that left (I think I\’ve got this right) your estate still to be taxed by the UK.
Still, that quote isn\’t what non-doms are. Non-doms are registered to pay tax. They pay income tax on their UK earnings, just like everyone else. However, they do not pay income tax on their non-UK earnings. That\’s the difference: if you\’re UK domiciled you pay income tax on worldwide earnings. If non-dom, only on UK.
Perhaps this system needs to be changed, perhaps not, I don\’t think it really matters all that much either way. But reporting on it and not understanding what it is is really pretty sad.