Tax / Money advice KSA
#1
Tax / Money advice KSA
I am moving to Riyadh for a two year contract soon and plan to be out of the UK for most if not all of this time. Also if all goes well I plan to extend the contract yearly or continue to work in the middle east. Mt wife is remaining in the UK at least for the early year or so as she has a good well paid job. I have a mortgage in the UK on the house where my wife is living and some other financial commitment. the questions I have are:
1. KSA is tax free, and I am hoping to claim tax free status in UK on grounds of being outside the country. Will money I send to pay the mortgage be taxable?
2. What are the current time limits for being in the UK, I have heard 90 days max in a 12 month period? I plan on Far less than this.
3. I understand that a full twelve months outside UK from April to April is required and that if i go now in September then it will require 19 months is needed. However will I need to pay Tax during this initial period or just account for the period later?
1. KSA is tax free, and I am hoping to claim tax free status in UK on grounds of being outside the country. Will money I send to pay the mortgage be taxable?
2. What are the current time limits for being in the UK, I have heard 90 days max in a 12 month period? I plan on Far less than this.
3. I understand that a full twelve months outside UK from April to April is required and that if i go now in September then it will require 19 months is needed. However will I need to pay Tax during this initial period or just account for the period later?
#2
Re: Tax / Money advice KSA
I am moving to Riyadh for a two year contract soon and plan to be out of the UK for most if not all of this time. Also if all goes well I plan to extend the contract yearly or continue to work in the middle east. Mt wife is remaining in the UK at least for the early year or so as she has a good well paid job. I have a mortgage in the UK on the house where my wife is living and some other financial commitment. the questions I have are:
1. KSA is tax free, and I am hoping to claim tax free status in UK on grounds of being outside the country. Will money I send to pay the mortgage be taxable? Not under current legislation provided you are classed as non-resident for tax purposes at the time
2. What are the current time limits for being in the UK, I have heard 90 days max in a 12 month period? I plan on Far less than this. Currently 91 days per tax year
3. I understand that a full twelve months outside UK from April to April is required and that if i go now in September then it will require 19 months is needed. However will I need to pay Tax during this initial period or just account for the period later? Incorrect. You may spend up to 91 days in the UK in the current tax year and still be classed as non-resident for tax purposes. If you are liable for tax in the current year on overseas earnings then HMRC will catch up with you eventually.
1. KSA is tax free, and I am hoping to claim tax free status in UK on grounds of being outside the country. Will money I send to pay the mortgage be taxable? Not under current legislation provided you are classed as non-resident for tax purposes at the time
2. What are the current time limits for being in the UK, I have heard 90 days max in a 12 month period? I plan on Far less than this. Currently 91 days per tax year
3. I understand that a full twelve months outside UK from April to April is required and that if i go now in September then it will require 19 months is needed. However will I need to pay Tax during this initial period or just account for the period later? Incorrect. You may spend up to 91 days in the UK in the current tax year and still be classed as non-resident for tax purposes. If you are liable for tax in the current year on overseas earnings then HMRC will catch up with you eventually.
http://financialuae.wordpress.com/20...ated-may-2011/
Note however, that the rules are likely to change significantly from 6th April 2012. The regulations are still under discussion and not likely to be fully clarified until early next year, but it is expected that if your family is in the UK, you retain a home there and remit your income to the UK then you will not be classed as non-resident and will be liable to tax on all of your overseas earnings.
I will get around to explaining some of the implications on my site before long so you might want to keep an eye on it for info.