Split Tax Year
#1
BE Forum Addict
Thread Starter
Joined: Aug 2011
Posts: 2,578
Split Tax Year
Sorry if this has been covered elsewhere but I was under the impression that, if an expat returns permanently to the UK in the middle of a tax year, HMRC are likely to (but not obliged to) treat the time overseas and the time back in the UK as separate for tax evaluation purposes. I recall having read a 6-7 page article somewhere to this effect. My British boss here in the UAE, however, has been advised to stay here until end-March to avoid having to be taxed on his UAE earnings. Have there been any recent changes I should know about?
#2
Account Closed
Joined: Mar 2012
Location: Dubai, working at Dust World Central
Posts: 3,706
Re: Split Tax Year
I have handed in my resignation notice with my last working day as 5th April so that HMRC have no if's, but's or maybe's. Having had experience of them over 40 working years they are not the sharpest knives in the drawer nor the fastest at sorting out errors and I am not giving them the chance to mess me around once I back in UK permanently and relying on savings until pensions kick in.
#3
Re: Split Tax Year
Mikewot certainly won't be wrong using a cautious approach, however the split tax year should be treated the same as when you moved from UK....provided you have met the other requirements for being non resident.
#4
Re: Split Tax Year
I have handed in my resignation notice with my last working day as 5th April so that HMRC have no if's, but's or maybe's. Having had experience of them over 40 working years they are not the sharpest knives in the drawer nor the fastest at sorting out errors and I am not giving them the chance to mess me around once I back in UK permanently and relying on savings until pensions kick in.
#7
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
Re: Split Tax Year
Sorry if this has been covered elsewhere but I was under the impression that, if an expat returns permanently to the UK in the middle of a tax year, HMRC are likely to (but not obliged to) treat the time overseas and the time back in the UK as separate for tax evaluation purposes. I recall having read a 6-7 page article somewhere to this effect. My British boss here in the UAE, however, has been advised to stay here until end-March to avoid having to be taxed on his UAE earnings. Have there been any recent changes I should know about?
Lots of strings attached, which are best avoided by finishing work on 5th April and returning to the UK on 6th April.
#8
Re: Split Tax Year
Residency is a very complex area and the tax rules surrounding this have changed significantly in recent years.
Ties such as home, work, family etc. in the UK may class you as UK resident for tax purposes regardless of where you reside.
If classed as UK resident you would then be taxed on your worldwide income.
Each individuals personal circumstances will vary according to the above factors applied under the statutory residence test which was introduced by HMRC with effect from the 2013/14 tax year.
#9
BE Forum Addict
Thread Starter
Joined: Aug 2011
Posts: 2,578
Re: Split Tax Year
Excuse me but I have been living and working in the Arabian Gulf with no home, work or family ties to the UK for sixteen years, so residency is not an issue for tax purposes until I physically arrive back in the UK.