ExpatAl

Hi all,

Now, I've been racking my brain for answers on this one including scouring this forum but am still a little unclear on the tax situation when moving to Dubai.

As I will be moving to Dubai after the new tax year has started, what implications do I need to bear in mind so I don't pay any UK tax on my earnings in Dubai?

A few additional questions on the topic -
- Will staying longer e.g. 2 years+ in Dubai reduce the likelihood of paying UK tax?
- Am I correct in saying that tax is only requested upon returning to the UK?

Obviously, one of the big appeals of Dubai is a tax-free income so making sure that I've got that all in check!

Many thanks

weasel decentral

You have to pay the tax to HMRC as you get paid and then if you stay out of the UK for two years they will refund it.

Just kidding

ExpatAl

Hmm ok - even if it's paid into a UAE bank account? Thanks for your reply!

mission

err? that isn't quite true
As long as you are out of the UK for one full tax year, which usually means 2 calendar years (unless you literally leave the UK on the 6th April) then you pay no taxes
I am not sure when and how you would pay tax if you end up doing less than the required time mentioned above - i assume once you relocate back to the UK then you would need to pay the tax......MEOW usually knows stuff like this.

jam25mack

Do you? I've never heard of anyone paying tax until they cover a full tax year.

I didn't. I just left. They figured it out eventually.

Surely if you fill out the form (P85???? or something like that) and then ensure you stay out for a full tax year the problem is sorted.

Meow

A person needs to be UK non-resident for tax purposes for at least one full tax year to avoid having to pay UK income tax on overseas earnings. The issue of partial years depends on various factor but the split year concession will apply to most people who move for work reasons so partial years are not likely to be taxable. (Note this is a concession, not a rule and there are several boxes that need to be ticked here.)

Whilst not mandatory it is advisable to submit a P85 form, especially if you leave part way through a tax year as a small rebate may be due in respect of the apportionment of the Personal Allowance.

Meow

This isn't correct for someone moving overseas to a new job. There can be compilations for a secondment but that is for a minority of cases.

ExpatAl

Thanks all - it's helped laid a worry to rest!

weasel decentral

Seems I was a little to subtle with the white text

Meow

Until I ran my mouse over it I couldn't even see it.

Made in Sheffield 1

I've just had to do that too. Thought I needed a trip to the opticians at first!

mission

Ah i see......

jam25mack

Didn't even see that!

Johnnyboy11

I'd add that the OP needs to be working full-time overseas for a full tax year and limits their days visiting or working in the UK, in order to comply with the Automatic Overseas test. So looks like 6th April 2019 before being confirmed UK non-resident, which is a long time if the job isn't working out. Best to set aside the tax, just in case... Also keep good records to be able to prove you were working full-time and the days you were overseas (signed timesheets, flight boarding passes etc.).

Oh, and of course, open a private pension before you leave the UK to benefit from free money

ExpatAl

Am I right in thinking that if the employment doesn't work out but I made a seamless transition into another role, this would not pose any problems re tax?

Could you elaborate on the above? I'm a bit naive when it comes to pensions and don't want to miss any tricks!