Johnnyboy11

Point 1, you'd probably be OK if you made a seamless transition to a new full time job, and stayed out of the UK in the meantime, but how likely is that, given the sponsorship/ NOC/ employment market crap that goes on in the Gulf? If you have a 'Significant Break' in overseas employment, then HMRC will be far more interested in your tax affairs. This is your risk.

Point 2, even though you're not paying UK income tax, you can still pay £2,880 each tax year and get 20% (£720) tax reliex automatically from HMRC in the tax year that you leave and for the following 5 tax years. Your pension pot is currently accessible at age 55 onwards, and as a bonus 25% can be taken free of UK income tax.

On the pension front, you should be saving a gross salary percentage equal to half your age when you started e.g. 15% at age 30, 20% at age 40 etc. No one else will do this for you, and you might well be in retirement for 40+ years.

I'd also suggest you contact HMRC before you leave the UK and ask to pay Class 2 NI contributions, to keep your UK state pension entitlement, as a backstop. I think Class 2's are being phased out in favour of Class 3's which are more expensive.

Briley1111

Can I jump in with my own scenario for advice please chaps?

All being well, I plan to go to work in Dubai from August 1 2017 for a year (I was given a year's career break from work to pursue this so unless I extend it I will be back a year later).

I'm a physio who is basically just looking forward to the tax free cash and working abroad for a year. PLEASE don't tell me that i've been mistaken the whole time!?

Millhouse

Youre mistaken.

You won't be tax free until April 2019

Of course that assumes you declare your income or the fact that you left the country for employment abroad.

sicklyman

and if you don't, when you get back to Blighty, remember to put in a good word for the fat cats when your mates unleash scathing criticism of tax dodgers down the pub.

quiltman

You're mistaken. You have to be out of the UK for a FULL tax year - 6 April to 5 april - in order to claim. If you left before 6 April 2017 then you'd just about be OK if you stayed out of UK until 6 april 2018. as it is your next full tax year will be April 2018 to April 2019. I left UK in July 2013 and had to wait until April 2015 before I could claim exemption under the double taxation treaty between UK and Phililppines . I did however get tax back from when I left to the end April 2014. Not a fortune as I left early in the tax year, but most welcome anyway!

Chipotl

Hello all i am in a similar situation where i am trying to plan as much as i can ahead for tax as i am a UK and Greece passport holder and have been living in the UK for the past 17 years (working 11) and i will be taking on a new job in UAE on 15th May
I have been reading up on UK tax liability on foreign income for UK non residents but i have become quite confused as to the statutory test and whether i will still be liable for the UAE income to be taxed in the 17/18 financial year in the UK or whether that will only apply if i return back in the UK prior to one full tax year. Also i have got confused as to whether i would qualify for a split tax year or not given i will only be in the country 24 working days after the new financial yer begin . I have also seen that there is a new double taxation treaty in place between uae and Uk since Jan 17 but i do not understand what this could mean for my uae income. Does anyone have any more insight into how the split year is determined and what it means?
I also own my own property which i will at some point rent t
My wife will also join me a bit later around July and she is a greek passport holder
My questions
-i am liable to pay income tax if I lose my job and come back to UK before the following tax year completes? Eg 6April 2019?do i need to pay anything in the meanwhile?
-savings-i intent to put savings on offshore account but will need to pay towards mortgage in UK first day of every month from these accounts. Will that be an issue and will it cause any issue with the taxman?
-does my wife s arrival date contribute towards a difficukt tax situation. She also works in the uk at the moment.
-pension. I note the state pension situation mentioned earlier but what options are there whilst out there in the uae on contributing towards a personal private pension offshore or elsewhere?
-notifying hmrc of my deparutre. When is best to do this and how?

Meow

I have a great deal of insight into the split year concession as I advise on this professionally.

No matter the circumstances you have to be out of the UK for at least one full tax year to be considered UK non-resident for tax purposes and thus exempt from UK income tax on overseas earnings.

The split year concession (note it is a concession, not a rule) applying will depend on your specific circumstances.

You and your wife are taxed separately under HMRC rules.

You can notify HMRC of your departure with form P85.

More info on the SRT here: https://financialuae.me/2013/02/12/i...esidency-test/

More info on UK NI payments here: https://financialuae.me/2016/09/19/u...-need-to-know/

You can contact me via the link in my signature for personalised advice.

Chipotl

Thank you very much your reply . I have sent you an email via the link you sprovided t me and i am keen to have a further chat to plan this correctly

Johnnyboy11

You clear on where you are currently domiciled (usually your father's country of birth)? From your OP, you left me wondering if your domicile was in Greece, which might have a significant bearing on your tax treatment in both the UK and in Greece.

ExpatAl

Ok, so an update - flying to Dubai next Friday!

Looking into voluntary NIC Class 2 contributions, there's no rush to sort this out as they can include retrospective payment (although before Class 2s are phased out)

With setting up a private pension to take advantage of the tax relief - any advice on how to set this up and via whom?

Cheers

Johnnyboy11

Hargreaves Lansdown SIPP

Will only take a couple of minutes.

ExpatAl

Cheers pal