Bonny Boy

As I have noted on previous threads, I concur with GOONER217 on this subject (despite being ManU!!!).

Refer to HMRC website, in particular documents SA109 and SA109 Notes. So long as you satisfy the Non Residency rules you can send money home and it will not be taxed. Once you have established Non Residency (Complete tax year outside UK except for permitted days), you can take split year treatment for your years of departure and return so that you only pay tax on your earnings whilst in the UK for those years - which seems fair enough.

I do get annoyed with the various financial-sales-people-types going on about how you MUST get an off-shore account. Yes, they pay slightly better interest, but these are best used by UK Residents with overseas earnings.

Old Lob

.

I do get annoyed with the various financial-sales-people-types going on about how you MUST get an off-shore account. Yes, they pay slightly better interest, but these are best used by UK Residents with overseas earnings.[/QUOTE]

Actually an offshore acount is of use to Brits who do not live in the UK because they have a better risk profile than local banks in the ME at least and avoid some complex stuff on inheritance under local laws.

An offshore acccont for a UK resident is as much use as tits on a fish because the banks have to declare UK resident customers - and indeed they probably won't open one for a European Resident.

benzonar

All this thread has done is convince me that I need to see a tax consultant before I move out to AD in May.

Need to make sure my tax liability is removed.

Norm_uk

If you're moving out in May and don't intend to be back until your contract expires (which would be at least 1-3 years in most cases) you have nothing to worry about except letting them know you are going and setting up an offshore bank account.

N.

MrsHaps

Thank you for your very indepth response, things actually are starting to make sense!

An of course i will take on board the legality issue of declaring the money!

Thanks again.

rish57

I came across a really good site www.finance4expats.com which may be able to help you. The site covers all aspects off tax savings and investments for expats.

Fairydust

Just thinking about this 90 day rule - if my hubby as a pilot does say 4 uk trips per month and they are going to count arrival and departure days as a full day s then that would make his annual count up to 96 days not including any other time spent in the UK per year. Would there be any special dispensation for this does anyone know??

Border Reiver

No, there isn't. Days of arrival and departure still count. This was partly done to stop UK long haul pilots living in France and commuting to the UK for work. Quite a popular trend at Virgin Atlantic at one point I believe.

Meow

You idiot. We don't earn anything from people having offshore accounts, but it is a sensible thing to do for anyone resident in the UAE & ME. If you knew anything about Sharia law you'd understand why, not to mention the security of funds.




I am a professional adviser (qualified & experienced), not a sales person. If I keep getting that type of response I shan't bother giving all the free advice, on numerous subjects, that I do here.

Lilly belle

Thanks for all the advice on here, we will get some financial advice before he goes but it looks like he will have to pay tax. Only coming back for 90 days isnt really an option as we have a daughter plus I would like to see him!!

So as far as i understand it, he has to be out of the country for at least 180 days to become non resident and not pay tax, but could only visit the UK for 90 days.

Its likely he would leave to start the job in June/July so after the financial year has started if the contract is longer than a year and we found a way around the 90 days would he still have to pay tax until next april?

Also does it make a difference which country he spent his time off in (obviously not the UK after the 90 days) it would be nice if it fits round school holidays!!

Thanks again!

The Dean

Calm down............ it's about time everyone took you out for a champagne brunch........ in fact, I don't know why nobody has suggested that before.......

GOONER217

Lily belle,

When he leaves to take up work abroad your husband should complete a form P85, see this link:

http://www.hmrc.gov.uk/cnr/p85_p85s.htm

The information on the form will enable HMRC to give an initial indication of his likely residence position from the outset. If your husbands contract will not cover a full tax year, which in his case would mean it would have to run up to 5 April 2010 at least, he will almost definitely be regarded as UK resident throughout.

If he is with a UK employer they may be able to operate PAYE throughout, but if he is with a "foreign" employer, they cannot operate PAYE. On that basis he would self assess his income after 5 April and pay tax on that basis.

For example, the tax on his earnings up to 5 April 2009 would be payable at 31 January 2010. If the contract continued beyond that, he would also have to start paying interim payments, initially set at 50% of the tax payable for the previous year, at 31 January and 31 July 2010.

This would then be sorted out when he submits his tax return for the year ended 5 April 2010, when a balancing payment or repayment would be calculated for 31 January 2011.

From 6 April 2008, if you intend submitting a paper tax return, as opposed to filing online, you only have until 31 October 2008. They will not be accepting paper returns after that date and this deadline may get tighter in future.

As far as holidays are concerned, so long as you are not in the UK, you are OK.

Bonny Boy

[QUOTE=Meow;6043481]You idiot. We don't earn anything from people having offshore accounts, but it is a sensible thing to do for anyone resident in the UAE & ME. If you knew anything about Sharia law you'd understand why, not to mention the security of funds.




I was not referring to yourself, so no need for the personal insults. It's just that I have met more than a few financial advisers who played fast and loose.

I have no intention of keeping any large amounts of money in the region - I send it back to the UK. Northern Rock notwithstanding, even more secure than the 'off shore' accounts; IoM, Jersey included. Hence the importance of clarifying that provided you are Non Resident under the terms defined by HMRC you can do this tax free. And yes you can.

Old Lob

Go on then - transfer 24 k per annum to you mum - she will be taxed as it will be deemed earned income. Also why are you asking us to sanction illegality - how do we know what the tax man knows or does not know??

However take this into account. If telephone billing systems have an uncanny ability to know who made the call and send you the charge then transfer of funds has data attached to it allowing the tax man / spies to be aware of transfers of funds for whatever pourpose from laundering money to paying your mother. So they do know - and they will increasingly know. The govt does need funds and is currently looking into even foreigh students funds- as part of the non-dom review they are carrying out.

Just don't ask us to approve breach of the law. We do avoidance - you are doing evasion - there is a world of difference.

britishbull

Does the new 90 day rule of incl departing and returning days apply retrospectively or only for the year starting 6th April 2008? The IR's non-resident tax site still has the old information.