CraigS

Hi Guys,

This is my first post here and im looking for some info.

Me and my wife are looking to move to Dubai next year, we have a mortgaged house in the UK.

I work for a drilling company in UK waters on 3 week on/off rotation

If we move to Dubai i would be looking to go "Tax Free" and crew change out of Dubai

Can anyone give me advice on this?

Am i able to keep my house in the UK? either keep it empty or rent it out?

Do i straight away inform the HMRC that i have moved abroad and stop paying TAX immedietly?

National insurance?

Pensions?

Thanks in advance for your help

Craig

Bob

Who knows about the tax status, potentially changing up next year...but it might not.

P-85 to inform you aren't a UK resident...but it's about average residence aboard, so first year away might not be the biggest tax saving.

If you're renting out your house, you've got to do your self assessments. As for being able to rent or not, well depends on your mortgage, you might find the rate changes if you aren't residing in the house, so check the small print and on the insurance too.

NIC's, you can make voluntary contributions, it's usually worth it, but does depend on your age and how many years you've already contributed.

mentalist

Do you realise that you cannot simply come here and automatically get a residence visa? You will need to get employment here first. Not sure how that will fit in with your existing 3 weeks on/off work schedule.

rowell

I am sure they will have checked it all out

TGFKASE

Right, few things pop straight to mind, Craig.

Are you sure you qualify for non-resident? Although you would no longer live in the UK, you would still be earning your money from the UK and still working in the UK and, on an equal time rotation, you would be in the UK for 183 days per year, WAY above the old threshold. Pretty sure the tax man is still gonna want his cut....

nikkisizer

Hi CraigS,

You are able to keep your house in the UK but there are lots of rules concerning residency with HMRC eg. whether you are classed as UK Resident, UK Resident but not Ordinarily Resident, Not UK Resident etc.

Factors such as your employment contract being from a UK company or Local company, connections back in the UK, date you leave the UK and if during a tax year if you qualify for split-year treatment with HMRC, if you are planning to permanently leave the UK, the list goes on!

Voluntary Class 3 National Insurance Contributions can be made to maintain your UK state pension benefits under certain conditions.

There is too much to go into detail here but I am based in Dubai so happy to help you further if required

gottheTshirt

I assume that you are not expecting to work a 3/3 rotation in Dubai. What is " crew change out of Dubai"

The tax rules will all change from April 2012 but for most of us the rules will be clearer and there will be no difference to our tax free status. Essentially you need to have a contract of employment in Dubai that covers a full tax year and you need to limit visits back to UK to less than 90 days a year. (after April 2012 this will become a variable depending on your UK situation). If you do any work in UK then life gets more complicated. Income in UK is taxable (e.g net rental income).

If your contract is at least April to April fill out a P85.

Bahtatboy

With the caveat that nobody knows yet what they'll be, but there are indications. As ever, know the rules of the game you're playing and make the best decision on the facts before you, but be prepared to have to change if the rules change.

gottheTshirt

True - HMRC may well decide that making the rules clearer will make it easier to change if the rules change. But I am an optimist.

TGFKASE

Ahem....

Everyone seems to have missed the fact that he will be working on rigs in UK waters.

He is working IN the UK on an equal time rotation (half the year), time off in Dubai..

You can NEVER be Non-Resident for tax purposes based upon that scenario....

gottheTshirt

Ah - now I understand, the term "crew change out of Dubai". Not a hope of tax free status.