Raf77

Hi guys/girls.
I arrived in Dubai at the end of May 2010 to take up employment. I intend to stay in this job until May 2012.. maybe even 2013.

Will I be liable for UK tax for my dxb earnings for the 2010/2011 tax year as I left the UK a month after the start of the tax year?

Any advice would be much appreciated... Thank you.

TREVORCOX

Have you filled in the form from the tax office informing them that u r now working overseas?
R U working for a UK company with salary still paid into UK account?
I presume you have paid tax for the period up to when u left the UK.
As far as I am aware and know u will be ok provided you do not spend more than 90 days in any one tax year in the UK.

busybee2

r but there are rules now about part year tax. meow is the one that will put you in the picture.

Raf77

I haven't filled in any forms for the taxman - my head has not been straight dealing with all the dxb red tape.
My tax prior to leaving the uk is up to date as I had left my previous job in late march 2010 and didn't start my dxb job until late may 2010 so this is my first paid employment for tax year 2010/11.
The employer is not a uk company and I get paid in AED into my dxb account.
Including the 19 days I was in the uk after the start of the tax year, I will not be visiting the uk for more than 90 days in the tax year.

As suggested, I have emailed Meow to see if I can use her services.

TrapMan

My advice is that you should fill in a Form P85 and submit it to your local tax inspector in the UK which will establish your status as non-UK resident from your date of departure. As such, provided you do not breach the UK residency rules (which broadly mean you cannot spend more than 90 days in the UK in any tax year (although this is increasingly a grey area)), you will not be liable to UK tax on overseas earnings until the date you re-establish UK residency.

Furthermore, depending on the level of any taxes suffered between 6 April 2010 and your date of departure, you may also be entitled to a partial refund of any such taxes paid.

Hope that helps

Meow

That's not quite right. Partial years may be subject to UK income tax.

TGFKASE

Get yourself a good accountant back in the UK..

When I first started working overseas (2001), I commuted back and fore to KSA (2 months on, 1 month off). Spoke to an accountant in Norwich recommended by a few of my colleagues and he told me what to do to keep myself 'under the radar' when it came time to apply for partial year.. . .

TrapMan

I am pretty sure there would be liability but only for the period for which an individual were UK resident. In this case, I assume any taxable income in respect of the 19 day period prior to becoming non-resident would be more than offset by the annual personal allowance.

gottheTshirt

Providing you have a contract of employment that covers the period from your departure to the date of your return and the period covers a complete tax year then you will be treated as tax free on overseas earnings for the whole period. By concession part years are not taxable - this is a concession, but providing you keep everything simple the concession will apply. This is covered by section 8.5 and 10.7 of HMRC 6.

Meow

Too much misleading information given by, people sadly. Guessing is not going to help others. There are NO guarantess that partial years are not taxable, unless you are UK non-resident for a full five tax years.

flares

so say I came to UAE in Jul 2005. I'd need to stay UAE resident til April 2011 to qualify for this 5 tax year rule.

Then if I do say another 6 months in UAE til Oct 2011 and return to UK to work thereafter - you are saying the chunk between April and Oct 2011 will not be taxable in UK?

but if I were to bring this forward 1 year and return Oct 2010 (ooh that's next month but only 4 complete tax years) I would be taxed for chunk between April and Oct 2010?

I think that's right but as others have said...speak to a pro

Meow

Essentially yes. And I am a professional.