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Quick question re tax

Quick question re tax

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Old Apr 16th 2013, 5:47 am
  #1  
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Default Quick question re tax

Hi,

I've been in the UAE for 2 1/2 years working for the government and am therefore a UK non-resident for tax purposes.

I might be moving to Oman but there I will be working for a UK-based organisation. They said they will pay me as a consultant into an Oman bank account.

Am I right in thinking that my non-residence status will be unaffected?

If anyone in the know could reassure me I'd be very grateful!

Many Thanks
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Old Apr 16th 2013, 6:06 am
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Default Re: Quick question re tax

You will be unaffected as you will remain UK non-resident for tax purposes. In your situation, what matters is where you are resident not who pays you.

Good luck with your move.
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Old Apr 16th 2013, 6:09 am
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Default Re: Quick question re tax

Originally Posted by Meow
You will be unaffected as you will remain UK non-resident for tax purposes. In your situation, what matters is where you are resident not who pays you.

Good luck with your move.
Brilliant. Thanks so much Meow!
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Old Apr 16th 2013, 9:20 am
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Default Re: Quick question re tax

Meow - there's a cyber pint in this for you

say a chap who was a non UK resident and worked 2/3rds of last year in UAE then returned to blighty for the final 3rd

would his 2012 bonus paid by the UAE company be classed as tax free ?
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Old Apr 16th 2013, 9:40 am
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Default Re: Quick question re tax

Originally Posted by Sandboy
Meow - there's a cyber pint in this for you

say a chap who was a non UK resident and worked 2/3rds of last year in UAE then returned to blighty for the final 3rd

would his 2012 bonus paid by the UAE company be classed as tax free ?
When was the bonus paid? If paid after his return to the UK then it won't be tax-free as he'll most likely be considered UK resident on arrival as he'll be staying there.

Sorry.
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Old Apr 16th 2013, 9:59 am
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Default Re: Quick question re tax

Originally Posted by Meow
When was the bonus paid? If paid after his return to the UK then it won't be tax-free as he'll most likely be considered UK resident on arrival as he'll be staying there.

Sorry.
can't afford a cyber pint now then

thanks though
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Old Apr 16th 2013, 9:12 pm
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Default Re: Quick question re tax

Hi all,

Sorry to interrupt this thread, but on a similar matter I am potentially moving out to Dubai this year at some stage (I guess Sept). Obviously I will pay tax in the UK until that point, but my wife and kids will then follow me out shortly after at which point then I will rent out my house.

My question is, althought we will be based in Dubai for at least 3-5 years, maybe more, will retaining my UK property (if rented out) constitute residency in the UK, and therefore incur tax charges? If I didnt rent it out, what would be the tax implications?

All advice gratefully received.
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Old Apr 16th 2013, 10:34 pm
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Default Re: Quick question re tax

Originally Posted by MrBAH
Hi all,

Sorry to interrupt this thread, but on a similar matter I am potentially moving out to Dubai this year at some stage (I guess Sept). Obviously I will pay tax in the UK until that point, but my wife and kids will then follow me out shortly after at which point then I will rent out my house.

My question is, althought we will be based in Dubai for at least 3-5 years, maybe more, will retaining my UK property (if rented out) constitute residency in the UK, and therefore incur tax charges? If I didnt rent it out, what would be the tax implications?

All advice gratefully received.
You will not be tax free non resident until 2014. I posted a link for you before.......
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Old Apr 17th 2013, 6:05 am
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Default Re: Quick question re tax

Originally Posted by britexpat76
You will not be tax free non resident until 2014. I posted a link for you before.......
You did, thanks very much! I can't quite work out how they will charge me tax and what the mechanism is, but I'm sure I'll get into it quickly enough. Thanks again for your help.
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Old Apr 17th 2013, 6:23 am
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Default Re: Quick question re tax

Originally Posted by MrBAH
You did, thanks very much! I can't quite work out how they will charge me tax and what the mechanism is, but I'm sure I'll get into it quickly enough. Thanks again for your help.
I'm no tax expert, but some on here are. My friend is in the same predicament moving out here. He spoke to his UK account and he will send 'some' money home to be taxed on and claim expenses against.
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Old Apr 17th 2013, 6:37 am
  #11  
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Default Re: Quick question re tax

Originally Posted by MrBAH
Hi all,

Sorry to interrupt this thread, but on a similar matter I am potentially moving out to Dubai this year at some stage (I guess Sept). Obviously I will pay tax in the UK until that point, but my wife and kids will then follow me out shortly after at which point then I will rent out my house.

My question is, althought we will be based in Dubai for at least 3-5 years, maybe more, will retaining my UK property (if rented out) constitute residency in the UK, and therefore incur tax charges? If I didnt rent it out, what would be the tax implications?

All advice gratefully received.
Whether you will be liable for UK Income Tax for the remainder of the 2013/14 tax year will depend on how long you remain UK non-resident and the exact date you move. If you spend less than 183 days in the UK in 2013/14 you may not have to pay but that depends on how long you are out in total.

Owning a property in the UK does not mean you are resident, but having access to a property is a connecting factor. If the property is let then you could be subject to income tax on the rental income if the income, less mortgage interest and allowance expenses, exceeds your personal allowance.

See these links:

http://financialuae.me/2013/02/12/in...esidency-test/

http://financialuae.me/2012/05/03/gu...ated-may-2012/
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