salientstar

Dear Expats,

I am a British national working here in Saudi Arabia and have asked my Employer (full time employment here) to transfer my monthly salary into my UK bank account. I would like to confirm whether there will be ANY tax implication on these remittances considering the earnings are from my full time employment abroad ONLY.

Should I keep transferring my monthly into UK bank account (regular current account with no interests gained on the capital amount) or should use any offshore bank account. Would this be a problem when I will be submitting my tax returns. Will there be any tax charge for these money transfers (see remittance basis charge at http://www.hmrc.gov.uk/international/remittance.htm).

Any guidance and help would be much appreciated.

Regards,
Kamran

Johnnyboy11

You are liable for full UK tax and NI on your worlwide earnings, unless you break UK residency, which can be backdated. So forget where/ when/ what you do with you earnings, it is UK taxable and NI'able. However, there are some concessions.

Main concession is to break UK residency, whereby you need to complete a full tax year working overseas as a minimum, plus meet some other criteria. The HMRC rules changed this year, so google for 'new uk statutory residency test pdf' and look for the KMPG flowchart which will explain.

[J]

salientstar

Thanks for your response. I understand what you have explained about non-resident and tax implications however the question is on Money transfer and tax implication on money earned through employment ONLY. Should I be transferring employment income back to UK back account on monthly basis considering the employment income in not subject to UK taxes if someone is non-resident ? What is normal practice of british expats in this scenario ?

flares

Off shore account

seven seas

How about getting proper advice from a tax accountant, rather than some sweaty fat guy on an internet forum?

We are all sweaty fat guys BTW.

Meow

Oi, speak for yourself. I'm not a guy...

Meow

I've just answered this on the other thread where you asked the same question...

It depends on your status and if you are UK non-resident for tax purposes then your overseas earnings should not be liable to UK income tax. You'll need to be aware that when it comes to partial tax years there could be a tax liability unless you remain UK non-resident for tax purposes for long enough for partial years not to be liable, which is five full tax years.

Note potential charges to days permitted in the UK due to the introduction of the Statutory Residency Test.

http://financialuae.me/2013/02/12/in...esidency-test/

scot47

Best way is to go down the Saracen's Head and ask the barman or one of the regulars.

salientstar

Cheers All.... So the understanding I have established is that as long as you are classified as non resident by HMRC there should not be any tax on employment income being remitted back to UK. However split year tax rule may have some impacts.

scot47

Residence creates liability, but they change the rules from time to time.

magnification

If I leave Belgium (resident currently till I go), spend a few weeks back in UK, then off to a renewable Saudi contract, what is best? .....assume UK residency (need to get a bank account?) or stay in limbo (stateless not possible) and get offshore account - if these are still legal??

Still waiting for visas after 5 weeks!

Thanks