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Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax?

Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax?

Old Feb 5th 2013, 3:32 pm
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Default Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax?

Hi there.

First time poster here, so please go easy on me...

My situation is this:

I am a British guy living in the UK at present, and I am hoping to imminently conclude a relatively big deal (the sale of a portfolio of market research information) with a US based client of mine.

Now if the client makes their payment directly to my UK based bank account, is there some sort of 'grace period' which exists where I could ship myself out to Dubai, find a nice place to rent, and just sit there for a year in the hope that I will then legally avoid having to pay UK income tax?*

*I appreciate I will have to arrange a Visa, and inform HMRC I am moving abroad for a year (out of interest, what procedure is required and which forms need to be filled in, in order to officially inform HMRC about my move to Dubai for a year)?

Also, does it make a difference:

(a) If the money from my deal hit my UK based account before April 5th?
(b) If I am still resident in the UK before April 5th?
(c) If the money continues to sit in my UK based account whilst I am away in Dubai?

Ultimately, will it be too late to legally avoid paying UK income tax if my deal goes through with my situation as is? Or are there steps which can be taken shortly after my deal goes through, which still mean I can legally avoid paying UK income tax?

Finally, would it help if I had an Isle of Man based bank account for the money from my deal to paid into initially? (If so, how does one go about obtaining an IoM account without already living there, or without already living as an expat - i.e. I'm living in the UK at present, so is it even possible to get an IoM account at the moment)?

Any help would be much appreciated.

Many thanks.

Luke.
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Old Feb 5th 2013, 3:43 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

Jimmy Carr but without the humour!!
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Old Feb 5th 2013, 4:05 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

are you living in the UK and enjoying the fruits of a democratic first world society with working services and infrastructure?

then man up and pay your tax bill for the services you enjoy

as to your question, i doubt you could legally avoid the tax should you have wished to do so then some forward planning would have been in order
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Old Feb 5th 2013, 5:13 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

Sounds like you need this place...

]

Unfortunately, I think they have closed down....
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Old Feb 5th 2013, 5:27 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

If you inform HMRC you are moving abroad for 1 year, then it makes no difference to your tax liability - you need to be abroad for one complete tax year to not be liable for tax in that tax year only.

You will be liable for tax on everything earned in the UK up to the date you leave, and everything you earn whilst you are abroad unless you are abroad for 1 complete tax year (from 6th April 2013 to 5th April 2014).

Even if you leave the UK for a few years, HMRC consider each case on an individual basis to decide whether or not to grant split-year concessions.

Unless you lie through your teeth to them (obviously illegal and not recommended), I would doubt they will give you the split-year concession.

In summary, pay the taxes you are liable for.
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Old Feb 5th 2013, 5:39 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

I only help people avoid paying tax legitimately. I do not assist with attempted tax evasion.
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Old Feb 5th 2013, 6:03 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

Also, not really sure how you will get a residence visa simply to sit in Dubai.
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Old Feb 5th 2013, 6:06 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

Originally Posted by mentalist
Also, not really sure how you will get a residence visa simply to sit in Dubai.
You can't and you also don't qualify as UK non-resident simply by leaving the UK to sit on a beach somewhere.
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Old Feb 5th 2013, 6:15 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

It's people like this who are helping to make it harder for legitimate expatriates...

N.
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Old Feb 5th 2013, 6:31 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

Originally Posted by saudiflares
Jimmy Carr but without the humour!!
Is there any other version?
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Old Feb 5th 2013, 7:09 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

Pay the tax you pikey
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Old Feb 5th 2013, 7:19 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

By posting here you have probably aroused the interest of HMRC !!
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Old Feb 5th 2013, 7:21 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

Reach out with your feelings, Luke.......... the force (of the taxman) will be with you - always..........

He did say he was looking for something he could do 'legally'...........

I don't care about the tax - I want to know more about the deal itself - a sum of money so huge it is worth going non-res for?? That's a life-changing one then........

I can just imagine the entire population of Lagos currently thinking up all combination of "Luke.Graves@......" e-mail addresses to write to, asking for his 'help'.......
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Old Feb 5th 2013, 7:40 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

Originally Posted by lukegraves1980
Hi there.

First time poster here, so please go easy on me...

My situation is this:

I am a British guy living in the UK at present, and I am hoping to imminently conclude a relatively big deal (the sale of a portfolio of market research information) with a US based client of mine.

Now if the client makes their payment directly to my UK based bank account, is there some sort of 'grace period' which exists where I could ship myself out to Dubai, find a nice place to rent, and just sit there for a year in the hope that I will then legally avoid having to pay UK income tax?*

*I appreciate I will have to arrange a Visa, and inform HMRC I am moving abroad for a year (out of interest, what procedure is required and which forms need to be filled in, in order to officially inform HMRC about my move to Dubai for a year)?

Also, does it make a difference:

(a) If the money from my deal hit my UK based account before April 5th?
(b) If I am still resident in the UK before April 5th?
(c) If the money continues to sit in my UK based account whilst I am away in Dubai?

Ultimately, will it be too late to legally avoid paying UK income tax if my deal goes through with my situation as is? Or are there steps which can be taken shortly after my deal goes through, which still mean I can legally avoid paying UK income tax?

Finally, would it help if I had an Isle of Man based bank account for the money from my deal to paid into initially? (If so, how does one go about obtaining an IoM account without already living there, or without already living as an expat - i.e. I'm living in the UK at present, so is it even possible to get an IoM account at the moment)?

Any help would be much appreciated.

Many thanks.

Luke.
Well, you did ask people to take it easy on you and they have, maybe, just maybe it would be worth investing couple of hundred pound to seek advice, be it there are systems in place to stop money laundering or tax evasion and for the right reasons. As the saying goes if you earn it you can pay the tax. If you do somehow manage to come up with a far reaching solution to avoid the tax then there are better places to spend on the beach than Dubai and without the visa implications etc.
Maybe a Troll?
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Old Feb 5th 2013, 8:55 pm
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

I have a spare room (with a nice view of the Palm), and a UAE bank account. Very happy for you to be in one and your money in the other, if that helps. I'm sure we can sort the details out.
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