Many only dream about becoming a ‘digital nomad’, travelling the world while making enough to support yourself and with the added luxury of being able to work from just about anywhere. However, if you’ve successfully carved out a career as a digital nomad, don’t let unexpected tax problems put an end to your indefinite travel plans.
Digital nomads often have no fixed abode, meaning there may be certain tax implications to be aware of. There’s no easy way around it, while you may be having the time of your life on a beach in Bali, you still have to be diligent about your paperwork and ensure you’re contributing tax where you should.
While you navigate the world, let us navigate the boring paperwork.
Why Use Dead Simple Accounting?
We have many clients who live their lives as a digital nomad, leaving us to sort the boring stuff so they can focus on what’s important: their business. We can guide you through the entire process, whether that’s setting up as a sole trader or as a company, and helping you file your taxes with HMRC, or whoever you may be required to pay tax to.
As you traverse multiple countries, it’s vitally important that you’re aware of the laws and regulations around your earnings, which is why so many people leave us to tackle their taxes.
But don’t just take our word for it, we’ll leave the talking to our five-star ratings across Google and Facebook.
At Dead Simple Accounting we charge just £275 including VAT for self-assessment tax returns, and can take you through the entire process.
If you’re interested in other services, such as setting up a company or payroll, head over to our quote page for a free and instant estimate.
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What Expenses Can Digital Nomads Claim?
Due to the lifestyle of a digital nomad, this can be a tricky area to navigate. Generally speaking, if something is being used purely for business purposes you can expense it, but you may have to check the requirements of the different countries you’re in.
You may be able to claim expenses for:
- Equipment, such as a laptop
- Phone/SIM costs
- If used for business
- Internet, such as mobile broadband
- If it’s for business purposes, such as meeting a client
- Office space & coworking memberships
- Accountant fees
You may also be able to claim things such as accommodation (such as Airbnb), meals with potential clients and ground transport, but there are lots of things that you must consider first. The safest bet is to keep on top of your paperwork, snapping pictures of receipts as a backup, and then letting us tackle the confusing parts for you.
Need Some Further Help?
If you have further questions or require assistance concerning accountancy for digital nomads, be sure to get in touch with us as soon as you can!
Digital Nomad Accounting FAQs
Nomads who stay for short periods in the UK (less than 16 days during a tax year) will likely not be liable, and will still pay tax in their home country.
Digital nomads may encounter different layers of tax residence due to their physical presence in several countries in a tax year. Most people have a permanent address for taxation purposes, and every country treats digital nomad tax differently.
If you stay away from your home country for a short period of time, it’s likely you will pay tax there. Every country has a different way to define tax residency, so it depends on where you are visiting.
The simplest option is to use a friend or family members home as your address as a digital nomad. You can also use mail forwarding services, but this is slightly more complicated.
These days there’s an abundance of tools and resources at your disposal, software that handles your invoices and expenses, to mobile based banks that cut the boring paperwork.
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