The country’s leading tax expert and tax campaigner seems to know alarmingly little about the tax system.
Now, we know that Dame Angelina got her title for services to William Hague but this is taking matters a little far. Apparently the opinion of someone who might want ‘a foothold for work’ here but is not actually resident, and who is unlikely ever to be so, let alone become domiciled, apparently matters enough to be reported as a matter of significant UK political concern.
Well, if that’s the case then let me contextualise this, and offer a response. First, Angeline, there are a lot of people already here and who have rather more than a foothold in UK work who would dearly love a house in this country; any house; and can’t get one. That’s in no small part because people like you have dragged London house prices way out of any scale that they will ever be able to afford. And all you want is to use them as a ‘foothold’, and not live in them.
Second, we only really want people to come here if they are willing to pay our taxes chosen by our democratically elected government. If you don’t like that, please don’t bother to create a foothold or anything else as we think paying tax is the obligation that arises from any such presence.
So, err, what’s the implication of Angelina Jolie doing some work in the UK? Whether she becomes resident or domiciled or not?
Well, actually, the implication of an actor doing some work in the UK (and this does matter, we’ve a fairly large studio over at Pinewood and so on) is that they pay UK income tax on the earnings in this country. There’s even a specialist HMRC unit that deals with such matters:
Q. Why pay tax twice – at home and in the UK?
A. The UK is entitled to tax on any income arising there; money due is collected from non-resident entertainers through a withholding tax. There is a misconception about withholding tax that it is in addition to tax paid in the person’s home country. This is not so. The UK has Double Taxation Agreements with over 100 countries to prevent double taxation.
When an entertainer or sportsperson pays UK tax on income they will be given a certificate (form FEU2) confirming the amount of tax paid. This certificate can be used to support any claim to foreign tax credit relief in their home country. In general, assuming the entertainer or sportsperson has sufficient tax liability in their country of residence, it will be possible to claim credit for the whole of the UK tax deducted.
The man’s simply ignorant of the subjects he decides to opine upon, isn’t he?
If Angelina Jolie works here she will pay tax here, as our democratically elected government has decided she will.
Is there no beginning to this man’s knowledge?