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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 13th 2013, 4:00 am
  #31  
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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 paulieg6
Having read a few things I am convinced it would be January as everyone (even 'non residents') get 90 days? January plus 90 days equals April 14?
No, keep working full-time overseas up to and including 5th April 2014 and limit your UK visits as per HMRC6. If you return to the UK permanently in January 2014, then you will not be granted the non-resident concession.
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Old Feb 13th 2013, 5:26 am
  #32  
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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 paulieg6
Having read a few things I am convinced it would be January as everyone (even 'non residents') get 90 days? January plus 90 days equals April 14?
The rule is that you become a uk resident on the day you return to UK . You cannot add 90 days after that unless you leave uk within 91 days. I.e you cannot end a period with leave in uk.
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Old Feb 13th 2013, 1:52 pm
  #33  
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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 gottheTshirt
The rule is that you become a uk resident on the day you return to UK . You cannot add 90 days after that unless you leave uk within 91 days. I.e you cannot end a period with leave in uk.
Nor can you start a period of non-residence by leaving the UK less than 90 days before 5 April........ many people make this mistake.
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Old Feb 13th 2013, 6:46 pm
  #34  
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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 paulieg6
Having read a few things I am convinced it would be January as everyone (even 'non residents') get 90 days? January plus 90 days equals April 14?
Why bother asking if you don't want to hear the answers? Some of us do this for a living so you've been told the facts...
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Old Feb 13th 2013, 11:28 pm
  #35  
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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 The Dean
Nor can you start a period of non-residence by leaving the UK less than 90 days before 5 April........ many people make this mistake.
that's interesting (I thought I was doing a good job of keeping up with this stuff).

I left the UK 31.01.2010 so could have liabilities with HMRC?
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Old Feb 14th 2013, 12:35 am
  #36  
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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 Brains1983
that's interesting (I thought I was doing a good job of keeping up with this stuff).

I left the UK 31.01.2010 so could have liabilities with HMRC?
Depending on when you return, yes.
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Old Feb 14th 2013, 1:00 am
  #37  
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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 Brains1983
that's interesting (I thought I was doing a good job of keeping up with this stuff).

I left the UK 31.01.2010 so could have liabilities with HMRC?
Indeed - if you start work in, say, Riyadh on 1st March 2013, you do not become non-UK-res until 6th April 2014..............
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Old Feb 14th 2013, 1:14 am
  #38  
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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 The Dean
Indeed - if you start work in, say, Riyadh on 1st March 2013, you do not become non-UK-res until 6th April 2014..............
Kind of, although you will be deemed non-resident from 6th April 2013, but that could change if they return to the UK within the year.

Partial years are no longer counted once someone has been UK non-resident for tax purposes for five full tax years.
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Old Feb 24th 2013, 10:03 am
  #39  
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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 The Dean
Nor can you start a period of non-residence by leaving the UK less than 90 days before 5 April........ many people make this mistake.
Did you mean 'less than 90 days after 5 April?

That sucks because I was planning to do that

I've read all through the SRT draft and its various 'translations' and I can't see any reference to a requirement to be out of the UK on the 5th April.

My current plan is the following:

Move out with the family to Abu Dhabi for full-time 3 year contract on the 2nd/3rd June after waiting for my bonus in my current job (i'm awaiting security clearance at the moment for a job in Abu Dhabi so I definitely won't be able to hand in notice before 5th March).

This means I'll have spent more than 45 days in the UK and more than 30 days working so I won't be automatically non-resident.

I've looked at the 'sufficient ties' bit and I definitely won't have either a Family tie (family are coming with me), Accommodation tie (not a homeowner) or Country tie (i'll spend most time in the UAE). I will have a Work tie and a 90 day tie though.

Will I be liable for income tax on all my overseas earnings for the 2013/2014 tax year just because I didn't leave before the 5th April?

Thanks in advance to anyone who can shed any light on this
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Old Feb 24th 2013, 10:36 am
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

Ah ok I think I've just figured it out - the second and third residence tests.

The wording 'a period of more than x consecutive days, falling partly within tax year' means that the time I've spent working or living in the UK from the 6th April gets me automatically resident (as i was living for more than 91 days and working for more than 365 days) during that time.

So given that, I guess the best I can hope for is to be given split tax year treatment? And given that I'll have two months' salary plus a bonus condensed into 1/6th of the tax year I guess i'll still have a largish tax bill when I get back (but better than being taxed on everything i guess)
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Old Feb 24th 2013, 6:49 pm
  #41  
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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 dannyg1981
Did you mean 'less than 90 days after 5 April?

That sucks because I was planning to do that

I've read all through the SRT draft and its various 'translations' and I can't see any reference to a requirement to be out of the UK on the 5th April.

My current plan is the following:

Move out with the family to Abu Dhabi for full-time 3 year contract on the 2nd/3rd June after waiting for my bonus in my current job (i'm awaiting security clearance at the moment for a job in Abu Dhabi so I definitely won't be able to hand in notice before 5th March).

This means I'll have spent more than 45 days in the UK and more than 30 days working so I won't be automatically non-resident.

I've looked at the 'sufficient ties' bit and I definitely won't have either a Family tie (family are coming with me), Accommodation tie (not a homeowner) or Country tie (i'll spend most time in the UAE). I will have a Work tie and a 90 day tie though.

Will I be liable for income tax on all my overseas earnings for the 2013/2014 tax year just because I didn't leave before the 5th April?


Thanks in advance to anyone who can shed any light on this
That depends on the total amount of time you are UK non-resident for tax purposes.


I really don't feel like expanding any more, as I'm getting a bit fed up with giving advise for free all the time with barely a thank you from posters.
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Old Feb 24th 2013, 6:53 pm
  #42  
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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 Meow
That depends on the total amount of time you are UK non-resident for tax purposes.


I really don't feel like expanding any more, as I'm getting a bit fed up with giving advise for free all the time with barely a thank you from posters.
Uh-oh.

To anyone who is curious or unsure or doesn't know...here is my personal feelings on the whole situation:

1. Don't worry.
2. Make a cup of tea
3. Read the rules on HMRC's website properly.
4. Read them again, you didn't read them properly.
5. Ring them.
6. Give up and decide to just not worry.
7. Have chicken kiev for dinner - you've not had them in a while and you know they taste good.
8. Continue to not worry.

See?

Meow - you put your feet up and stop dishing out the free advice for a while, I got this.
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Old Feb 24th 2013, 7:51 pm
  #43  
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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 Scamp
Uh-oh.

To anyone who is curious or unsure or doesn't know...here is my personal feelings on the whole situation:

1. Don't worry.
2. Make a cup of tea
3. Read the rules on HMRC's website properly.
4. Read them again, you didn't read them properly.
5. Ring them.
6. Give up and decide to just not worry.
7. Have chicken kiev for dinner - you've not had them in a while and you know they taste good.
8. Continue to not worry.

See?

Meow - you put your feet up and stop dishing out the free advice for a while, I got this.
You don't know how much I want chicken kiev now.............
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Old Feb 24th 2013, 8:05 pm
  #44  
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Default Re: Does a 'grace period' exist to move to Dubai, to save having to pay UK income tax

LOL

Going to be stopping off to pick up some chicken kievs on the way home tonight methinks.

Thanks for the advice, I think I need to go back and negotiate a bit more as I clearly misunderstood the HMRC rules before!
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Old Feb 24th 2013, 8:06 pm
  #45  
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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 britexpat76
You don't know how much I want chicken kiev now.............
I had one a few weeks ago. The mrs was a netball, the healthy eating has been going on for ages, I spotted it in the freezer.

Straight in the oven with curly fries and beans on the hob.

Absolutely spectacular.

Salad can kiss my reducing arse.
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