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Another tax question I'm afraid

Another tax question I'm afraid

Old Jan 29th 2014, 3:26 pm
  #1  
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Default 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
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Old Jan 30th 2014, 5:30 am
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Default Re: Another tax question I'm afraid

Originally Posted by Mully View Post
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
You should fill in a P85 form and send it to HMRC as you should not be paying tax in the UK if you are in Dubai for 3-5 years.
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Old Jan 30th 2014, 7:29 am
  #3  
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Default 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.
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Old Jan 30th 2014, 7:39 am
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Default 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.
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Old Jan 30th 2014, 1:38 pm
  #5  
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Default Re: Another tax question I'm afraid

Originally Posted by Mully View Post
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
A suggestion: Consider starting a personal pension before the end of this tax-year (5 April). As a UK expat, you can pay in £2,880 and HMG will rebate £720 automatically, even though you pay no UK tax. This applies the to the tax-year you leave the UK and the subsequent 5 tax-years.

That's what I do, I like free money

[J]
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Old Jan 30th 2014, 1:57 pm
  #6  
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Default Re: Another tax question I'm afraid

Many thanks guys !
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