jimmybond007

Appreciate evey individual circumstances are different but I have been offered a job in Dubai. Originally I thought that I could live outside the UK for more than 183 days and I could then bring my tax free money back to the UK. I now realise that has changed. If you have been a UK tax payer for the last seven consecutive years, you are deemed a UK tax resident even if you live somewhere else and then want to bring the money to the UK. To be clear, I would move, but my house in the UK would not be sold as my wife would not come with me. Am I right that I need to pay UK tax in this situation if the money came to the UK? Would it be any different if my wife came and then we rented the house out, returnng to the UK only to visit friends and family, or would I pay tax on ALL circumstances!?

Thanks for any expert advice on here.

gottheTshirt

It was never the case that you only need to be out of the country for 183 days to be tax free. It used to be that you would be tax free if you had an oveseas contract of employment lasting 365 days, but for may years the condition has been that you must be out of the country with a contract of employment for a full tax year (april to April).

jimmybond007

OK...but even so. I am reading on HMRC that that's not enough now. If you've been a UK tax payer for 7 years or more, you cannot bring the income back in to the UK unless you pay tax on it. There's a lot more criteria to meet and a whole load of grey!

gottheTshirt

Will your contract of employment in Dubai continuepast 5th April 2021, if so you can meet SRT 3, classified as non resident and not subject to tax on your overseas earnings.

jimmybond007

Thanks. Looks like I fail under SRT3 as I have one tie...my wife is staying here.Residence: The SRT: Definition of a family tie

MartynK

This is obviously an important consideration for you, so talk to a good tax lawyer or accountant. A single consultation should be sufficient, but get his opinion in writing.

gottheTshirt

I agree I could explain, but I have avoided giving any detail, you should either understand the HMRC guidance yourself or consult a professional.

Johnnyboy11

Have a read of HMRC RDR3, and in particular the Automatic Overseas test 3, pasted below. If you meet this test, and it will be 6th April 2021 before you do (the end of your first full tax-year since leaving the UK), then you are deemed to be non-UK resident from the day you left the UK, so don't have to pay UK tax on your worldwide earnings and can send money home tax-free as and when you wish. There are Split-Year rules governing the tax treatment of the years you leave and return to the UK to be aware of too. If you meet this test, then you won't trigger the Automatic UK Tests and the Connecting Ties tests, which are both subordinate. Keep detailed records of days spent in the UK (boarding passes are good) and hours actually worked in both the UK and overseas (signed timesheets are good), you might need them one day. Think about your pension before you go, you can still pay into a private pension (up to £3600 gross a year and benefit from tax relief) and can also pay Class 2 NICs towards your State Pension, subject to conditions. Lots of people work in the Middle East with the families left back home. As posted above, taking professional, specialist advice would be a wise choice.

2.3 Third automatic overseas test

You’ll be non-UK resident for the tax year if you work full-time overseas over the tax year and:

• you spend fewer than 91 days in the UK in the tax year
• the number of days on which you work for more than 3 hours in the UK is less than 31
• there is no significant break from your overseas work

A significant break is when at least 31 days go by and not one of those days is a day where you:

• work for more than 3 hours overseas
• would have worked for more than 3 hours overseas, but you did not do so because you were on annual leave, sick leave or parenting leave

If you have a significant break from overseas work you’ll not qualify for full-time work overseas.

The test:

• can apply to both employees and the self-employed
• does not apply to voluntary workers or workers with a job on board a vehicle, aircraft or ship

Read RDRM11100 onwards for full details on the conditions of these tests.