Jlidle

Hi all
I got a question relating to Tax. I am British and was working as a contractor for US companies in the US for many years then worked as full employee of a company in Australia for a bit more than a year and I am back in the UK for good now. I paid tax abroad and brought back little savings with me. I have used most of these in the past 8 months to live on while looking for a new job here, so I have less than half of it left in my savings account. I have just started a contracting job where I am being paid by an umbrella company that also deducts Employers Ni as well as my own Ni..
Now my question is re. my tax code. I found out that HMRC put me on a very high tax code instead of the standard rate and I don't know why? An error?
Also, would HMRC tax me on the little savings I've been using to live on since back in the UK or /and on what I've got left?
Surely HMRC should not tax me again on the ,money I earned as a contractor in the US and then as an employee of an Australian co. in Australia?
Can anyone advise on this before I decide to call them?
I've looked at the HMRC website but did not find it too clear. Thank you all.
JL

aratan

My understanding (limited) is that you should not be taxed on any SAVINGS at all in the UK.

Nor should you be UK-taxed on any INCOME that you make overseas, if you return to the UK partway through a tax year (although I believe this is an 'unofficial' guideline for HMRC, and not official policy/legislation).

Best to look for some advice from a tax expert, possibly before approaching HMRC.

Jlidle

Thank you Aran. Yes I think it'd be better to ask a Tax expert beforehand. Thanks a lot

dunroving

There is a "split tax year" situation, which I think has changed in recent years. I returned (and re-returned!) twice during a tax year but can't remember how I dealt with it - probably outdated information now, anyway.

Have you looked at the HMRC Web page? It's actually not too difficult to follow.

TopNik

Hi Jlidle,

HMRC would have sent you a PAYE coding notice (Form P2) which would tell you what your tax code is and how it has been worked out.

If you do not have this then you will need to call HMRC.

holly_1948

Yes, indeed each tax year is treated separately.
You might consider timing your flight to arrive on 6th April if that works for you!

And save yourself a whole lot of paperwork.