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Returning to UK after not completing full tax year

Returning to UK after not completing full tax year

Old Jul 5th 2009, 9:19 am
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Default Returning to UK after not completing full tax year

Can anyone confirm how much tax i will have to pay (if any) if i return to the UK before completing a tax year. I left UK in Sept 08 and plan to return in 09. I told the tax man that i left in Sept so there's gonna be no getting away from it....

Will i have to pay full tax on everything that i have earned in this time? Or is it a portion?

I was looking at the HMRC website and all it says is 'it may affect your liablity to UK tax' if you havent been abroad for a whole tax year......

Sketchy....

Anyone who has actually returned to the UK and can shed any light please let me know.
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Old Jul 5th 2009, 11:02 am
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Default Re: Returning to UK after not completing full tax year

For such a short period, it looks as if you will be fully liable. I essence, if you spend more than 91 days in the UK during a tax year you will have to pay tax on all earnings.

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Old Jul 5th 2009, 12:13 pm
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Default Re: Returning to UK after not completing full tax year

why not go on holiday somewhere nice until the 12 months are up ?

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Old Jul 5th 2009, 12:16 pm
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Default Re: Returning to UK after not completing full tax year

i did consider that....better to spend it on that than just writing a cheque out to HMRC!
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Old Jul 5th 2009, 12:18 pm
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Default Re: Returning to UK after not completing full tax year

Go hang out on a beach in Thailand for a few months. It's dirt cheap and beautiful.
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Old Jul 5th 2009, 1:07 pm
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Default Re: Returning to UK after not completing full tax year

Originally Posted by Nic1 View Post
why not go on holiday somewhere nice until the 12 months are up ?
If you did then you would not meet the criteria of being out of the country and employed.
Thats what the bloke at HMRC told me when I phoned him before I left.
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Old Jul 5th 2009, 1:28 pm
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Default Re: Returning to UK after not completing full tax year

Originally Posted by 954RR View Post
If you did then you would not meet the criteria of being out of the country and employed.
Thats what the bloke at HMRC told me when I phoned him before I left.
Yes - we were told that - they like to see continuous employment too! Not sure how they could check on this though and also whether they would have the time to check !
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Old Jul 5th 2009, 1:30 pm
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Default Re: Returning to UK after not completing full tax year

Originally Posted by soukie View Post
Yes - we were told that - they like to see continuous employment too! Not sure how they could check on this though and also whether they would have the time to check !
Salary slips perhaps?
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Old Jul 5th 2009, 1:50 pm
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Default Re: Returning to UK after not completing full tax year

so regarding the 91 days rule, can i return on the 6th Jan? Therefore the 91 days will be accounted for the period between 6th Jan and 5th April? Or do you have to stay til 5th April?
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Old Jul 5th 2009, 2:01 pm
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Default Re: Returning to UK after not completing full tax year

Originally Posted by smileymiley1980 View Post
so regarding the 91 days rule, can i return on the 6th Jan? Therefore the 91 days will be accounted for the period between 6th Jan and 5th April? Or do you have to stay til 5th April?
I haven't counted the days to check, but that is how it works. You just have to make sure that you are in the country for no more than 91 days, including days of arrival and departure.


954RR - it doesn't matter if you are employed or not, so the poster could avoid uK tax be staying in Thailand for a few months.
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Old Jul 5th 2009, 2:08 pm
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Default Re: Returning to UK after not completing full tax year

cool thanks for your help

i might actually just travel for 3 months then from end of Sept to end of Dec (ish)

cheers
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Old Jul 6th 2009, 4:02 am
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Default Re: Returning to UK after not completing full tax year

Originally Posted by Meow View Post
I haven't counted the days to check, but that is how it works. You just have to make sure that you are in the country for no more than 91 days, including days of arrival and departure.


954RR - it doesn't matter if you are employed or not, so the poster could avoid uK tax be staying in Thailand for a few months.
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Meow - I defere to you expertise as it is not my field.
The Guy back in the Uk was very helpfull however and told me about a lot of mistakes that people make. He was amaazed at the number of people who return to the UK and then call the help line. He said "if only they had called before they returned I could have put them straight."
It appears that the classic is to save your hols to the end of your contract and then return to the UK and take them. From his perspective this does not work as you finish your contract and then take your hols so you are no longer employed and therefore do not meet part of paragraph 2.2 of IR20
'your absence from the UK and your employment abroad both last for at least a whole tax year'
Oh and yes I have the number but it is in a drawer at home. I will post it when I return to the UK for a visit in September.
However as I said it is not my field so this is simply poolside wisdom. However if you want to know about industrial control systems then I am your man.
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Old Jul 6th 2009, 6:55 am
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Default Re: Returning to UK after not completing full tax year

Originally Posted by 954RR View Post
Meow - I defere to you expertise as it is not my field.
The Guy back in the Uk was very helpfull however and told me about a lot of mistakes that people make. He was amaazed at the number of people who return to the UK and then call the help line. He said "if only they had called before they returned I could have put them straight."
It appears that the classic is to save your hols to the end of your contract and then return to the UK and take them. From his perspective this does not work as you finish your contract and then take your hols so you are no longer employed and therefore do not meet part of paragraph 2.2 of IR20
'your absence from the UK and your employment abroad both last for at least a whole tax year'
Oh and yes I have the number but it is in a drawer at home. I will post it when I return to the UK for a visit in September.
However as I said it is not my field so this is simply poolside wisdom. However if you want to know about industrial control systems then I am your man.
It isn't the working that matters so much as where someone is physically located. Agree with the comments about people returning home & then asking for help though. Happens all the time I have had people here asking to tax assistance a week before they are moving back to the UK and then are surprised when there is nothing they can do to reduce their liabilities. Ideally you need to plan at least 6 months ahead.

Industrial control systems - if only I knew what one earth they were. (No don't tell me & ruin the mystery.)

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Old Jul 7th 2009, 2:43 pm
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Default Re: Returning to UK after not completing full tax year

Guys

The news is worse than you imagined. Your information is, sadly, out of date. So listen up:

It used to be the case that if you were absent for a complete tax year you would be treated as non resident for that period.

Also, you could be back in the UK up to 182 days a year or no more than 91 days on average over a 4 year period.

Now, however, HMRC will look not only at absence but where your "vital interests" are. So if you still have your family home in the UK, or your family is here, then that will have a bearing (the new law is untested so cannot say how much of a bearing). Tread with caution. Basically, Gordon has screwed the UK to such an extent they want all the cash they can nick off people. Personally, its massively impacted my intentions - I'm staying out of UK a lot longer (maybe permanently) than I had planned... but so far, its been fab lol

PS if you're a sad type like me who needs to read chapter and verse before you believe anyone, go the the HMRC website and search for IR20 (which is out of date now) and another booklet, "Residence, Domicile and the Remittance Basis". Happy reading
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Old Jul 8th 2009, 3:46 am
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Default Re: Returning to UK after not completing full tax year

Originally Posted by Meow View Post
Industrial control systems - if only I knew what one earth they were. (No don't tell me & ruin the mystery.)

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Don't worry the worst thing is trying to explain what Industrial control systems means and what I do. So the less said the better.
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