Superdarts

I apologise for covering ground which has been covered before, however I thought it would be useful to highlight my recent call with the UK HM Revenue and Customs.

My wife and I moved to Dubai in September 08 and have both been in full time employment from when we arrived, travelling back to the UK for holidays when possible (maximum 60 days in previous tax year). My wife is now 26 weeks pregnant and plans to leave her job and return to the UK at the end of July (approx 24th) to have the baby in September. The plan then was for my wife to spend the majority of her time in Dubai, but inevitably she will cross the 90 day allowance for the current tax year in the UK. I will continue full time employment in Dubai and all forms were filled with HRMC before we left the UK.

I have read numerous articles and differing opinions both on this site and on the internet regarding the tax implications of returning to the UK after completing a full tax year out of the UK so I called the tax office to clarify – which they were not able to do!!

I was passed to 3 separate advisors and the conclusion of all 3 was that we should be ok for monies earned from September 08 through to April 10, however we may be liable for tax on the foreign earnings from April 10 through to July 10. The reason for me being passed to 3 separate advisors was my insistence to be given more clarity on the situation however as stated above I could get no further than “she will need to submit her 2010 /11 tax return and it will be assessed at that point”.

Can anybody here provide some clarity?

lionheart

Not really.

Meow

If your wife has no income then it doesn't matter whether or not she is resident as there is nothing to pay tax on. She also has a full personal allowance in respect of any rental income.

Tax liability for Sept 08 to 5th April 09 depends on a couple of issues; how long in total you are non-resident and if less than five full tax years, whether HMRC will allow the 'split year' concession.

Where do I send my bill?

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The Dean

Meow, surely if you leave the UK during the 08/09 tax year, you don't qualify for anything until April 09? You don't gain anything (i.e. non-resident status, or whatever the phrase is) for the year in which you actually leave?

Meow

You can be deemed non-resident from the date you leave, but whether there is a tax liability depends on exact date of leaving and how long you remain non-resident.

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