IndigoGirl

Can someone please help - I am trying to find out the tax implications (if any) of me staying in the uk and working for a few months before joining my husband in al Ain. I know I have read about it somewhere and cannot for the life of me find it. I have googled it but cannot find the answer and I think it was on this forum that I saw it a while back

Thanks

Meow

If you have income arising in the UK then you will be liable to UK tax. Spouses are treated separately for tax purposes.

I am not sure what you are asking. Is it about partial tax years??

IndigoGirl

Thanks ever so much Meow - for some reason I thought I had read that if my husband worked abroad and I remained here for a few months working then we would be taxed on his salary as well I was sure I must have been wrong but just needed to make sure.

Johnnyboy11

Your husband will pay full tax and NI contributions on everything he earns, unless he is eligible for one of two HMRC tax concessions. See HMRC6 guidance, particularly Section 8.5 for the details.

The first concession is that he must to leave the UK and work full-time overseas under an employment contract for a full tax year to be considered UK non-resident (i.e. UK income tax + NI free) from the day he left. So that will be until April 6th 2014 by the sounds of things. He must also limit his visits to the UK (90 days per year rolling average over 4 tax years or 180 days in any one tax year or thereabouts). The year he leaves and the year he returns to the UK can benefit from the second 'split-year concession', providing he qualifies for the first concession.

There is another route to non-residency which is leaving the UK permanently, severing all major ties, and not repatriating for at least 3 years. Again see HMRC6.

Rules will change next year when a new non-residency test is due to kick in. But working full-time abroad and limiting visits to the UK will likely mean your hubby remains UK non-resident.

[J]

IndigoGirl

Thank you both for your responses - perfectly clear now