How do I avoid paying UK income tax?
Dec 19th 2004, 9:11 am
#1
Soupy twist
Thread Starter
Joined: Dec 2004
Posts: 2,271
How do I avoid paying UK income tax?
If I take the job I've been offered in Dubai, is it simply a matter of telling the Inland Revenue that I'm off and then staying out of the UK for at least 90 days each tax year if I want to be free of UK income tax? I've heard that if I move *after* April 1st 2005, I'll still be liable to pay UK income tax for the year - is this true?
Secondly, we'd want to be saving money for our eventual return to the UK - what would our best option be? To maintain a savings account with a British bank and transfer money every so often, or save locally and not convert the money into sterling until we actually repatriated?
I realise that these are questions best addressed to a proper tax/financial adviser, but we're still a way off getting to that stage and I'd be interested to hear the opinions/experiences of people round here first!
Secondly, we'd want to be saving money for our eventual return to the UK - what would our best option be? To maintain a savings account with a British bank and transfer money every so often, or save locally and not convert the money into sterling until we actually repatriated?
I realise that these are questions best addressed to a proper tax/financial adviser, but we're still a way off getting to that stage and I'd be interested to hear the opinions/experiences of people round here first!
Dec 19th 2004, 9:15 am
#2
Up in the air
Joined: Oct 2004
Location: I'm global baby!!!!!!
Posts: 7,263
Re: How do I avoid paying UK income tax?
Originally Posted by GarethR
If I take the job I've been offered in Dubai, is it simply a matter of telling the Inland Revenue that I'm off and then staying out of the UK for at least 90 days each tax year if I want to be free of UK income tax? I've heard that if I move *after* April 1st 2005, I'll still be liable to pay UK income tax for the year - is this true?
Secondly, we'd want to be saving money for our eventual return to the UK - what would our best option be? To maintain a savings account with a British bank and transfer money every so often, or save locally and not convert the money into sterling until we actually repatriated?
I realise that these are questions best addressed to a proper tax/financial adviser, but we're still a way off getting to that stage and I'd be interested to hear the opinions/experiences of people round here first!
Secondly, we'd want to be saving money for our eventual return to the UK - what would our best option be? To maintain a savings account with a British bank and transfer money every so often, or save locally and not convert the money into sterling until we actually repatriated?
I realise that these are questions best addressed to a proper tax/financial adviser, but we're still a way off getting to that stage and I'd be interested to hear the opinions/experiences of people round here first!
Dec 19th 2004, 9:25 am
#3
Troublemaker
Joined: Aug 2004
Posts: 540
Re: How do I avoid paying UK income tax?
Originally Posted by Jammy_Dodgers
I think you need to speak to a relatively competent accountant......................Kristy...do you know any ??
I believe you're supposed to be non-UK resident for a full tax year i.e. 6th April 2005 - 5th April 2006 to stop paying income tax on money you earn overseas. Not sure how many days you have to be out to count as non-UK resident.
I had to complete a form for leaving the UK and will be completing another form for re-entering the UK.
Try this link: http://www.inlandrevenue.gov.uk/nonresidents/
I believe even as a non-resident you're still liable to pay tax on any income earned in the UK i.e. from renting out a property or interest earned. A lot of expats open offshore accounts.
Last edited by kristy; Dec 19th 2004 at 9:35 am.
Dec 19th 2004, 9:31 am
#4
Banned (Always Correct)
Joined: Aug 2004
Posts: 941
Re: How do I avoid paying UK income tax?
Originally Posted by kristy
I know a very competent accountant but unfortunately she's no tax expert! I have a tax adviser, and I recommend people do this if they want to know the rules.
I believe you're supposed to be non-UK resident for a full tax year to stop paying income tax. Not sure how many days you have to be out to count as non-UK resident.
I believe you're supposed to be non-UK resident for a full tax year to stop paying income tax. Not sure how many days you have to be out to count as non-UK resident.
Dec 19th 2004, 11:25 am
#5
The 5th Amendment
Joined: Aug 2004
Location: Dubai City
Posts: 3,142
Re: How do I avoid paying UK income tax?
Originally Posted by kristy
I know a very competent accountant but unfortunately she's no tax expert! I have a tax adviser, and I recommend people do this if they want to know the rules.
I believe you're supposed to be non-UK resident for a full tax year i.e. 6th April 2005 - 5th April 2006 to stop paying income tax on money you earn overseas. Not sure how many days you have to be out to count as non-UK resident.
I had to complete a form for leaving the UK and will be completing another form for re-entering the UK.
Try this link: http://www.inlandrevenue.gov.uk/nonresidents/
I believe even as a non-resident you're still liable to pay tax on any income earned in the UK i.e. from renting out a property or interest earned. A lot of expats open offshore accounts.
I believe you're supposed to be non-UK resident for a full tax year i.e. 6th April 2005 - 5th April 2006 to stop paying income tax on money you earn overseas. Not sure how many days you have to be out to count as non-UK resident.
I had to complete a form for leaving the UK and will be completing another form for re-entering the UK.
Try this link: http://www.inlandrevenue.gov.uk/nonresidents/
I believe even as a non-resident you're still liable to pay tax on any income earned in the UK i.e. from renting out a property or interest earned. A lot of expats open offshore accounts.
I still have my business account in the UK but I can pay myself thru the business a/c into my offshore account and not be liable for work done thru the company accounts. it is a very very grey area area.
I am a company sec. of another company in the UK and live overseas. This is possible which i thought odd at first however am not liable for any tax.
Work abroad and keep the account overseas or offshore then Tony B can piss off.
You will be liable for all income such as rental income as the property is in the UK. So open up a business account and pay thru that.
Dec 19th 2004, 11:27 am
#6
The 5th Amendment
Joined: Aug 2004
Location: Dubai City
Posts: 3,142
Re: How do I avoid paying UK income tax?
Originally Posted by GarethR
If I take the job I've been offered in Dubai, is it simply a matter of telling the Inland Revenue that I'm off and then staying out of the UK for at least 90 days each tax year if I want to be free of UK income tax? I've heard that if I move *after* April 1st 2005, I'll still be liable to pay UK income tax for the year - is this true?
Secondly, we'd want to be saving money for our eventual return to the UK - what would our best option be? To maintain a savings account with a British bank and transfer money every so often, or save locally and not convert the money into sterling until we actually repatriated?
I realise that these are questions best addressed to a proper tax/financial adviser, but we're still a way off getting to that stage and I'd be interested to hear the opinions/experiences of people round here first!
Secondly, we'd want to be saving money for our eventual return to the UK - what would our best option be? To maintain a savings account with a British bank and transfer money every so often, or save locally and not convert the money into sterling until we actually repatriated?
I realise that these are questions best addressed to a proper tax/financial adviser, but we're still a way off getting to that stage and I'd be interested to hear the opinions/experiences of people round here first!
drop me an email if u need some data and names. A financial advisor will rip u off and not be too interested when they know ur leaving. I can put u touch with a stocks and shares man in dubai if ur interested in making a bit nore than a regualr savings account as well.
PS i never smile.
Dec 19th 2004, 11:28 am
#7
BE Enthusiast
Joined: Sep 2004
Location: Dubai
Posts: 948
Re: How do I avoid paying UK income tax?
A good shag will get you very far
Dec 19th 2004, 11:36 am
#8
The 5th Amendment
Joined: Aug 2004
Location: Dubai City
Posts: 3,142
Re: How do I avoid paying UK income tax?
Originally Posted by DubaiExpat
A good shag will get you very far
Dec 19th 2004, 11:37 am
#9
BE Enthusiast
Joined: Sep 2004
Location: Dubai
Posts: 948
Re: How do I avoid paying UK income tax?
Originally Posted by joseph.creative
soph.... this is about tax not the bondage of taxation.
Dec 19th 2004, 12:20 pm
#10
Premium Member
Joined: Oct 2004
Location: Abu Dhabi soon
Posts: 4,123
Re: How do I avoid paying UK income tax?
Phone the Uk taxman....his advise is free and also very useful...worked for me the past few years. He'll also advise you of any monies u can claim back. Unfortunately even with the IR gateway u still can't file expat tax returns on line...paper copies only.... TS
