Navaronuk1967

If I am working in dubai but still own my house in uk.... does this mean I am still liable for uk tax on these uae earnings even if im out of the country for the rest of the financial year. Or just my uk earning upto the date I leave the uk

Seems very harsh if it is
Thanks

mikewot

Depends on where you are resident. There are a couple of dozen threads in here linking to the HMRC residency guide.

busybee2

as said it depends if you have been out of the country for the required non residency status etc.... it used to be full tax year but its recently been changed. do a search, as this question comes up very very very very very many times!

owning a house doesnt really mean anything other than you will still have to pay council tax and bills and the like... but new rules are coming next year re living abroad and selling houses being liable for capital gains tax etc... meow is the one to advise you on here amongst others.

Johnnyboy11

You are liable for full UK income tax and NI on your worldwide earnings until you become UK Non-resident. Easiest way to do this is to leave the UK to work full-time abroad under an employment contract, complete a full tax year, whilst minimising your visits back to the UK. If you do this, a split year concession is available for both the year you leave and the year return to the UK.

There's an HMRC guidance note here, and lots of flowcharts available online if you search for 'UK Statutory Residence Chart Flowchart'.

Everyone's circumstances are different and the whole area of tax residency is complex. You'll appreciate that once you start reading the RDR3 guide. But the full-time working route is the easiest for most UK expats in the Middle East.

Assuming you've not yet left the UK, then the earliest you can become UK non-resident is 6th April 2016, but this can be backdated under the split year concession to the day after you leave the UK.

Jay Tee

hong_konger

With all due respect !!!
If you are or are intending to work overseas and do not understand whether or not you will be liable for UK tax on your income then you really ought get some proper advice and/or read up on the current tax regulations etc.

Although you will get some good advice here on BE you should not limit your source of knowledge to BE.

Navaronuk1967

I am leaving in 12th June for a fulltime permanent job and don't intend coming back anytime soon if that helps. So the 2016 date is fine and if backdating is possible after time that's great. Thanks for the advice

busybee2

yes but you have to do probation, also things dont always pan out the way they say... ie unlimited contract doesnt always mean that.

coffindodger

As BusyBee2 has just pointed out you have your probationary period and of course you are also arriving in the start of the hottest part of the year and also Ramadan is just less than 2 weeks away as well.

I have known people that have come over to the Middle East, and could not just hack it for what ever reason,
Maybe the heat or humidity or the brain dead yokels !!.

Also just because you have an xxx year contract, please remember all you have to just say the wrong words to the wrong person at the wrong time and that's it you have a nice window seat back home.

Navaronuk1967

sounds very much like the UK... brain dead yokels,,,,,, but its an opportunity i guess...... long term hopefully. thanks for your advice guys....

TopNik

Hello Navaronuk1967,

Further reading for you which you will find of use:

http://www.hmrc.gov.uk/cnr/rdr1.pdf

Victor Meldrew

What is the situation in reverse?

When you return to UK after being non-resident, do you have to notify anybody that you have become resident again? if so, who and how?

When I plan to come back I will have been non-resident 14 years and will be returning from Dubai end June 2015 (although my Dubai contract doesn't finish until end August 2015).

Sorry to partly hijack your thread OP but thought this might be something else others would be thinking about

Thanks

TopNik

Hello Victor Meldrew,

Assuming you are going into employment your Employer will notify HMRC when you start working for them.

If you are going to become self employed then you will need to call HMRC to register for self assessment.

If you will be unemployed and claiming state benefits (if applicable to you) then notification to HMRC will take place automatically.

Johnnyboy11

You should look into UK Capital Gains Tax if you have any assets that you are thinking about selling eg. UK property, shares or other investments.

I think there are big tax advantages to doing this whilst you are UK Non-resident and in the Middle East (zero tax) as opposed to the UK which is up to 28% on the Capital Gain (less your annual allowance of around £11k).

Watch your timing, HMRC may consider you as UK Resident the day after you stop work, not when you actually arrive in the UK or when your contract ends.

magnification

By the way, is it still 183 days out of UK to not be liable for UK tax?