Moving to Dubai to work, tax on british income?
Jul 1st 2022, 8:47 pm
#1
Just Joined
Thread Starter
Joined: Jul 2022
Posts: 2
Moving to Dubai to work, tax on british income?
Hi guys,
Im new to all of the accounting stuff (never understood it). I will be moving to Dubai soon and will mostly be working remotely ( freelance Software Dev).
Ive registered a company in Dubai and will be getting paid into a Dubai bank account, all accounting/Tax, etc will be handled by Dubai based accountants.
I own a property in the UK which i am earning rental income from, the rent will cover the mortgage repayments. Do i have to declare myself a non-resident landlord? ive read about a UK-UAE double tax treaty, will that affect me?
It would be great if someone can explain (in leymans terms) what the double tax treaty is and how it benefits us.
If anyone else has been in a similar situation to me, it would be great to know what you did about your UK income.
Thank you in advance!
Im new to all of the accounting stuff (never understood it). I will be moving to Dubai soon and will mostly be working remotely ( freelance Software Dev).
Ive registered a company in Dubai and will be getting paid into a Dubai bank account, all accounting/Tax, etc will be handled by Dubai based accountants.
I own a property in the UK which i am earning rental income from, the rent will cover the mortgage repayments. Do i have to declare myself a non-resident landlord? ive read about a UK-UAE double tax treaty, will that affect me?
It would be great if someone can explain (in leymans terms) what the double tax treaty is and how it benefits us.
If anyone else has been in a similar situation to me, it would be great to know what you did about your UK income.
Thank you in advance!
Jul 2nd 2022, 12:48 pm
#2
Forum Regular
Joined: Sep 2021
Posts: 33
Re: Moving to Dubai to work, tax on british income?
Hi guys,
Im new to all of the accounting stuff (never understood it). I will be moving to Dubai soon and will mostly be working remotely ( freelance Software Dev).
Ive registered a company in Dubai and will be getting paid into a Dubai bank account, all accounting/Tax, etc will be handled by Dubai based accountants.
I own a property in the UK which i am earning rental income from, the rent will cover the mortgage repayments. Do i have to declare myself a non-resident landlord? ive read about a UK-UAE double tax treaty, will that affect me?
It would be great if someone can explain (in leymans terms) what the double tax treaty is and how it benefits us.
If anyone else has been in a similar situation to me, it would be great to know what you did about your UK income.
Thank you in advance!
Im new to all of the accounting stuff (never understood it). I will be moving to Dubai soon and will mostly be working remotely ( freelance Software Dev).
Ive registered a company in Dubai and will be getting paid into a Dubai bank account, all accounting/Tax, etc will be handled by Dubai based accountants.
I own a property in the UK which i am earning rental income from, the rent will cover the mortgage repayments. Do i have to declare myself a non-resident landlord? ive read about a UK-UAE double tax treaty, will that affect me?
It would be great if someone can explain (in leymans terms) what the double tax treaty is and how it benefits us.
If anyone else has been in a similar situation to me, it would be great to know what you did about your UK income.
Thank you in advance!
You will pay UK income tax on your rental income from UK property. For other income to be taxed in UK, you need to check the residence criteria, however if you aren't in UK more than 90 days in any FY, you do not need to pay income tax. This is as per my knowledge.
Filling NRL1 is an application, which if accepted (generally accepted by HMRC), HMRC will send a letter of approval to your estate agent. If NRL1 application isn't granted, estate agent will pay the rent to you after deducting the income tax.
You still need to file Self Assessment, in which you can declare your rental income & reduce allowable expenses.
Hope you know, if your property has mortgage, you need consent to lease from your lender.
Hope this helps.
MD
Jul 4th 2022, 4:50 am
#3
BE Forum Addict
Joined: Jun 2010
Location: Abu Dhabi
Posts: 1,172
Re: Moving to Dubai to work, tax on british income?
Have a read of https://www.gov.uk/government/public...-test-srt-rdr3
You want to (ideally) qualify for one or more of the automatic overseas tests. Otherwise it gets more complicated
You want to (ideally) qualify for one or more of the automatic overseas tests. Otherwise it gets more complicated
Jul 4th 2022, 7:24 am
#4
Just Joined
Thread Starter
Joined: Jul 2022
Posts: 2
Re: Moving to Dubai to work, tax on british income?
Thanks for the replies! very informative. I was wondering if i should be doing the overseas test and filling the NRL1 application now or do i have to do it after ive been out of the UK for 90days?
Jul 4th 2022, 11:28 am
#5
Happy To Help!
Joined: Nov 2012
Location: Everywhere
Posts: 165
Re: Moving to Dubai to work, tax on british income?
Hi 8900120d,
The area of residence is complex and it is very important that it is handled correctly in order to protect your liability to income and capital gains tax.
HMRC's literature on this is in excess of 100 pages for a reason and many feel the consequences of this at a later stage from HMRC when not handled correctly, sometimes years later!
Unless you have the necessary knowledge in this area you should seek professional advice.
The area of residence is complex and it is very important that it is handled correctly in order to protect your liability to income and capital gains tax.
HMRC's literature on this is in excess of 100 pages for a reason and many feel the consequences of this at a later stage from HMRC when not handled correctly, sometimes years later!
Unless you have the necessary knowledge in this area you should seek professional advice.
