Split Tax Year

Old Nov 24th 2015, 4:03 am
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Default 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?
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Old Nov 24th 2015, 5:24 am
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Default 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.
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Old Nov 24th 2015, 5:53 am
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Default 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.
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Old Nov 24th 2015, 10:25 am
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Default Re: Split Tax Year

Originally Posted by mikewot View Post
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.
oh nooooooo MIKE you leaving???
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Old Nov 24th 2015, 10:30 am
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Default Re: Split Tax Year

Originally Posted by mission View Post
oh nooooooo MIKE you leaving???
You've seen me in action on the dance floor, the epitamy of granddad dancing! It's time!
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Old Nov 24th 2015, 10:34 am
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Default Re: Split Tax Year

Originally Posted by mikewot View Post
You've seen me in action on the dance floor, the epitamy of granddad dancing! It's time!
fo'sho we gotta get together for a drink or two, or three....I'm moving apartments this week and so once I'm all done with that malarkey i'll hit you up
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Old Nov 24th 2015, 2:06 pm
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Default Re: Split Tax Year

Originally Posted by mentalist View Post
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?
Split year rules changed in April 2013, and the concession depends on your particular circumstances. Plenty advice online, such as here or here.

Lots of strings attached, which are best avoided by finishing work on 5th April and returning to the UK on 6th April.
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Old Nov 25th 2015, 10:48 am
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Default Re: Split Tax Year

Originally Posted by mentalist View Post
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?
Hello mentalist,

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.
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Old Nov 26th 2015, 4:26 am
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Default Re: Split Tax Year

Originally Posted by TopNik View Post
Ties such as home, work, family etc. in the UK may class you as UK resident for tax purposes regardless of where you reside...
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.
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