Another tax question I'm afraid
#1
Just Joined
Thread Starter
Joined: Jan 2014
Posts: 4
Another tax question I'm afraid
I am currently living and working in Dubai and have been since Sept 2013. I am expected to be here for 3 years maybe stretching to 5 years. My question is ...
I am currently paid via the UK into a UK account by a UK company but I still pay the normal taxes I souls as if I was still in the UK. I am sure there is a logical reason for this but I would just line a plain English version.
Is this the norm ?
Who would benefit from this arrangement etc
Any help would be very much appreciated
Mark
I am currently paid via the UK into a UK account by a UK company but I still pay the normal taxes I souls as if I was still in the UK. I am sure there is a logical reason for this but I would just line a plain English version.
Is this the norm ?
Who would benefit from this arrangement etc
Any help would be very much appreciated
Mark
#2
BE Enthusiast
Joined: Jun 2010
Location: Dubai
Posts: 585
Re: Another tax question I'm afraid
I am currently living and working in Dubai and have been since Sept 2013. I am expected to be here for 3 years maybe stretching to 5 years. My question is ...
I am currently paid via the UK into a UK account by a UK company but I still pay the normal taxes I souls as if I was still in the UK. I am sure there is a logical reason for this but I would just line a plain English version.
Is this the norm ?
Who would benefit from this arrangement etc
Any help would be very much appreciated
Mark
I am currently paid via the UK into a UK account by a UK company but I still pay the normal taxes I souls as if I was still in the UK. I am sure there is a logical reason for this but I would just line a plain English version.
Is this the norm ?
Who would benefit from this arrangement etc
Any help would be very much appreciated
Mark
#3
Hit 16's
Joined: Mar 2010
Location: Of all the gin joints, in all the towns, in all the world, she walks into mine
Posts: 13,112
Re: Another tax question I'm afraid
P85 is right. When I was in UAE I was employed by a UK company (but seconded to their sister company in UAE), paid by that UK company into my UK bank a/c, but received a Nil Tax Code and therefore did not pay any tax. Do the P85, and maybe get your company to chase it up from their side.
#4
Forum Regular
Joined: May 2013
Posts: 278
Re: Another tax question I'm afraid
There are two ways to claim exemption from UK tax:
(i) working for a single employer overseas for a complete tax year (i.e. until April 2015) - even if you're paid from the UK.
(ii) making a complete break from the UK - this is difficult and requires you to be away for several years and to cut most ties to the UK. New tests for this category (ii) came into force this year so need to be researched.
Category (i) is what will apply to you. As mentioned above, you need to fill in Form P85. There are also limits on the numbers of days you can spend in the UK on holiday or working - you can research them.
You should be able to reclaim tax paid since September 2013 by fillling in a tax return. You can reclaim everything except National Insurance (which needs to be paid for 52 weeks upon your departure). Keep your payslips.
If you return to the UK before spending one complete tax year abroad (i.e. before April 2015) you will probably have to pay tax on your entire stay overseas, so be careful. If you change employers or spend time not working before April 2015 that may affect your tax position also.
(i) working for a single employer overseas for a complete tax year (i.e. until April 2015) - even if you're paid from the UK.
(ii) making a complete break from the UK - this is difficult and requires you to be away for several years and to cut most ties to the UK. New tests for this category (ii) came into force this year so need to be researched.
Category (i) is what will apply to you. As mentioned above, you need to fill in Form P85. There are also limits on the numbers of days you can spend in the UK on holiday or working - you can research them.
You should be able to reclaim tax paid since September 2013 by fillling in a tax return. You can reclaim everything except National Insurance (which needs to be paid for 52 weeks upon your departure). Keep your payslips.
If you return to the UK before spending one complete tax year abroad (i.e. before April 2015) you will probably have to pay tax on your entire stay overseas, so be careful. If you change employers or spend time not working before April 2015 that may affect your tax position also.
#5
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
Re: Another tax question I'm afraid
I am currently living and working in Dubai and have been since Sept 2013. I am expected to be here for 3 years maybe stretching to 5 years. My question is ...
I am currently paid via the UK into a UK account by a UK company but I still pay the normal taxes I souls as if I was still in the UK. I am sure there is a logical reason for this but I would just line a plain English version.
Is this the norm ?
Who would benefit from this arrangement etc
Any help would be very much appreciated
Mark
I am currently paid via the UK into a UK account by a UK company but I still pay the normal taxes I souls as if I was still in the UK. I am sure there is a logical reason for this but I would just line a plain English version.
Is this the norm ?
Who would benefit from this arrangement etc
Any help would be very much appreciated
Mark
That's what I do, I like free money
[J]
#6
Just Joined
Thread Starter
Joined: Jan 2014
Posts: 4
Re: Another tax question I'm afraid
Many thanks guys !