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Joe Taxpayer Vs. The Volcano

July 20, 2010 · 1 comment

If you’re familiar with the taxing laws in various countries, you know that they can be tricky. There are generally complex formulas based on the number of days physically present inside of a country which will determines whether a person can be taxes as a resident – or non-resident – for income tax purposes (in the US and the UK, the term has different meanings for immigration purposes than for tax).

Trust a little thing like Eyjafjallajokull to complicate things even further. The volcanic ash cloud stranded many travelers in Europe long beyond their intended stay, which makes tax reporting a challenge. The UK, for its part, has announced that non-UK resident persons who remained in the UK for more than 90 days due to the ash cloud will not be treated as becoming UK resident for income tax purposes. However, it appears that those who exceed the annual limit of 183 days are out of luck: for tax purposes, you’re a resident. If in doubt, contact your tax pro for guidance.

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