Riina

Hi there,

I have trawled all over the net and cannot seem to get any clarification on this!

I hope someone can give me some guidance as I am at my wit's end

I started working in Dubai on 24th Jan 2010 and then had to return to the UK (not work related) on 6th March and am due to fly back on April 16th 2010 (46 days including date of entering and leaving the UK). My question is that what are the tax implications on this as I am very confused with the whole 91 day rule?

Does this mean I still have 45 days left until April 2011 to come and visit the UK and I will still qualify for non resident status? or does the fact that pre Jan 2010 i was living in the UK (and therefore over 4 years my average days in teh UK will exceed 91 days) this will mean I pay tax on all my UAE income?

I'm really worried - I haven't filled out any HMRC forms so no one is aware that I left to go and work (i know that I may be able to complete this in retrospect)...

My main question is - how long do I have to live abroad to qualify for non resident status and in addition will i be taxed on my UAE income i earned in Jan - Feb as it was the in the 2009/2010 tax year?

Please please please help! any guidance will be very much appreciated!!

xxxxx

Hello.Kitty

well, firstly, you could try calling the Tax people in the UK and see what they say - they are generally very good at telling you how many days you have left.

Aside from that, your Jan/Feb stay would be counted as a split year on condition for staying out of the UK for a whole tax year thereafter, so yes, you would have to stay out until April 2011. The 90 days applies to all your days between Jan2010-April 2011.

Meow

Note that the 90 days are relevant per tax year, not per calendar year. Your overseas earnings in the 2009/10 tax year (up to 5th April 2009) could be subject to UK income tax if you return to the UK (& become resident again) within 5 tax years of becoming non-resident.

To be counted as non-resident for tax purpose is about intent and HMRC will only be aware of your intentions if you complete and return form P85, although this can be done after the event.

Please contact me if you have any further queries. I do this for a living.

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Meow

That is not correct. As I have said many times the 90 days are per tax year only.

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Hello.Kitty

that was my understanding too, Meow. I won't pretend to know as much as you do about the matter, just that Mr Kitty was told that he could spend 90 days in the UK from the time we left (Sept 08) to the end of the first complete tax year away, so April 2010.

Riina

Hi!

Many thanks for the advice - this is veru useful. So if I have understood correctly I can take 91 less the days I am in the UK for 2010/2011 tax year and still be ok to go back and be resident in the UK for say May 2011 (if I have to go back that is). I just want to avoid having to stay for 2 years plus to avoid paying tax.

By the time I return to Dubai (16th April), I will have spent 10 days of the new tax year in the UK - to clarify, I am ok to come and visit for 81 days until April 2011 to avoid paying tax (I realise I have repeated above but just want to clarify).

In addition as I worked the last week of JAN - 6 March in Dubai will this be taxable (it's around 5 weeks) and if so then when do I have to do this?

Should I refrain from filling out the HMRC form just to be on the "safe side" for now or will that just mean i am considered resident in the UK and be liable for tax. I just want to know when the earliest I can come back would be without having to pay Tax on my UAE earnings!!

Many thanks again, you are a wonderful source!

xxx