pratt123

If anyone has any recommendations to seek professional tax advice, that would be much appreciated too.

Thanks again guys, the help so far has been great.

Johnnyboy11

The day you leave the UK you become provisionally Non-Resident, so no income tax to pay in the UK. However, you are only confirmed Non-Resident after you complete a full tax year overseas and meet a bunch of rules mainly around time spent visiting or working in the UK. If you break these rules, or repatriate to the UK before completing a full tax year overseas, then you remain UK Resident and liable for UK income tax on your worldwide earnings, as though you'd never left. Best get specialist advice, as the rules are complex and will affect expats differently depending on individual circumstances. See here for an explanation: https://assets.kpmg/content/dam/kpmg...-flowchart.pdf

Pensions are up to you, nobody else will pay them for you, particularly in the Middle East where very few employers contribute. Life will be pretty miserable on UK state handouts when you're older, for sure. You can still pay voluntary NI contributions to keep your UK State Pension going, even as an expat. See here: https://assets.publishing.service.go...NI38_12_20.pdf . £1 million invested will realistically earn you a £40k annual income before tax (the 4% rule), think about it...

DXBtoDOH

Even if you don't care about saving for a few years and want to live the good life, sensibly you should still maintain the pension contributions and set aside £1,000 a month as untouchable savings. Which should be easily doable on 40K plus your UK income as most of it will be tax free.

Remember, at the end of the few years in Dubai you'll want to go back to the UK if you keep to that plan. It could be a seamless transfer from a UAE job to a UK job, or it could mean many months of unemployment looking for work. It's always useful for any expat to prepare for this by setting aside funds for a potential spell of unemployment. If you ended up with a seamless transfer, then you have a pot of gold to play around with

If I were you and your wife, I'd be looking at living entirely off her UAE income and putting all your UK income straight into pensions and savings. Which I think is eminently doable on 40k a month in the UAE as you don't have school fees to pay.

Many people come out to Dubai and with some pragmatism and care, can leave with good experiences and fat bank accounts. Others spend every single penny and leave worse off. You don't want to be the latter.

pratt123

Absolutely, great advice, thank you. Our plan was precisely just that - to be able to live off her salary and put most of my UK net salary into a savings account. Having gone through some quick numbers yesterday, I think we may be able to live within 30k-35k per month, provided we get a nice flat somewhere at 120k or below.

I contribute a reasonable amount to pension already through salary sacrifice, which I do intend to continue. Quick question - I am assuming I need to still pay income tax/NI etc through PAYE as normal through UK employer or is there a means for me to apply for a refund since I will also accompany her to Dubai and hence be deemed a non-resident? It would be immense if I had my income tax free too, but I suspect I m being too wishful here!😬

We also plan to let out our house here whilst we re in Dubai. That's one of the biggest stumbling blocks currently as any period without a tenant(s) would eat into any intended savings from my pay.

Thanks again for taking the time out to help.

Millhouse

if you are properly out of the U.K. there is no reason why your U.K. salary doesn’t become tax free. Read the tax rules carefully (all available and very clear on the gov website).

I think capping the expenses at 30k is a push. There is always something that comes up.

For instance- some insurances don’t cover kids vaccines. They are easily 1000dh a pop.

pratt123

Yes, 30k would probably be a stretch. My calculations were, 120k accommodation (10k/month), 3k utilities, 7k expenses for food, entertainment, 4k for a maid (may not be live in as not keen on having someone with us 24/7 personally), 6k for car hire, travel, miscellaneous. Perhaps completely overlooking something here but hopefully 10k buffer should cut it.

I had a browse through the .gov website and I m still confused tbh. If everything goes to plan , we plan to come in the summer, which would mean both of us stay > 90 days in the tax year in the UK (April to say July). Which would then make us residents here this tax year. However, I think we may be eligible for the split year treatment as, say, arguably from the 1st of July, we should properly have moved across to Dubai. So not sure how all this plays out from a tax perspective and makes it even more complex.

Whilst my employer has been super supportive so far with my particular case, I doubt they ll want to get involved in any protracted PAYE setup just for one employee. So as far as possible, I am hoping I can submit the necessary forms to HMRC myself if that's the way forward, to get issued the NT code from July onwards.

The final piece I m concerned about is rental income which we should hopefully get here whilst away. I presume if the split year treatment is approved, then I just have to pay UK tax on the rental income alone, and my 'salary' is untaxed.

So many complications already and we are only two days in since we heard about her potential offer! Slowly beginning to think this may be a step too far and may not materialise....

Thanks again Millhouse et al.

Johnnyboy11

I doubt very much your current UK employer will let you move to UAE and keep working from there. Unless they have an office in UAE who can employ/ sponsor you? There are major legal, tax and liability implications doing business in UAE, and only the bravest UK companies venture into that arena, and usually then via an arms length subsidiary company. If you want to work in the UAE then you'll need a local sponsor and a work visa, and even then you'll need a University Degree, clean Police Clearance and Medical.

You can get a split year, for the tax year you leave and the tax year that you return. But...ONLY IF YOU COMPLETE A FULL TAX YEAR OVERSEAS.
So 6th April 2023 is a date to put in both your diaries.
Again, seek professional, specialist advice.

DXBtoDOH

I can't speak for the UK end but if you are working remotely in the UAE for a UK employer as a consultant then all you really need is to be sponsored by the wife as a family member. As long as all work is done on an overseas basis there's no need to get a working visa in the UAE. You're not seeing clients or making sales to UAE companies.

I know people who continued working for UK employers on a consultancy basis and then later returned to permanent employee status when moved back to the UK.

DXBtoDOH

If in a flat, 500-1k a month is more realistic for utilities. especially if in a chiller free building. It's only villas where utilities become quite expensive.

6k for car hire is ridiculous. You can get a basic Japanese model for 3k a month. Better off buying. 3k a month gets you a 4x4.

35k all in every month is doable and offers a comfortable life. Realistically you budget for 30k a month, end up spending 35k and still have 5kish left over each month from the UAE income. That's not bad. Especially with a UK income going into the emergency funds and pensions.

Millhouse

not with the new freelance system. It came in after you left.

UK rental income is always taxed.

pratt123

So my company does not have a presence/office in UAE. My role doesn't entail business development or meeting clients or anything of that sort. In fact, I am an internal Finance professional in the company and do not have any client/customer interaction. Only the internal teams.

In that capacity, if I were to get a spouse visa, I was hoping I d be ok to work remotely without any additional liability/corporate tax obligation for my company?

DXBtoDOH

It's probably one of those areas where if you want to be strictly legal and above board, then Millhouse can point you to this freelance visa system. But in reality, as long as everything is strictly kept overseas with only you behind a computer in the UAE and all payments paid directly into overseas accounts and never enter the UAE, then who's to know? Your employer wouldn't be reporting you to the UAE authorities. You'll be living on a spousal visa. No one is going to be checking on you.

I did quickly look at this freelance visa online and the costs aren't bad. Might be worth it for peace of mind.

psychopomp1

This might be useful for the OP:

www.thenationalnews.com/uae/government/uae-to-issue-residency-visas-for-remote-work-1.1188299

Millhouse

agree with this. If she can sponsor him, she should. If she cannot then it’s the freelance visa.

pratt123

Thanks for the suggestions all. We've asked the question if I get a spouse visa too if things do progress from here on. If yes, then it's all hopefully straight forward.

Does anyone know the steps to get UK income tax free (if we do end up staying beyond April 2023 and meet the one whole tax year criteria) ? I will seek professional advice if needed of course but just wondered if anybody has a similar experience already.

Thanks.