Tax situation

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Old May 12th 2015, 11:42 am
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Default Tax situation

New to this so apologies if its not relevant

My daughter is getting married in June and moving out to Dubai in July with her new hubby they have a 1 year old child.

I want to help get her tax situation sorted before she goes and ask the following

She has an income of around £8000 a year from uk properties. She will be keeping her UK bank account with her new address in Dubai.

When will the HMRC have to be informed of her moving and getting married on submission of the tax forms next year 2015/2016 ? or immediately. She has no job so my understanding is that the tax situation will not change it will remain nil. However if she gets a job in Dubai do we have to inform HMRC?
Thanks
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Old May 12th 2015, 2:07 pm
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Default Re: Tax situation

if you are renting out properties then you can get the non resident landlord scheme. you need to google hmrc as the rules have changed re tax.. it used to be 1 complete tax year to be tax free but its now all changed and can be complicated.
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Old May 12th 2015, 2:26 pm
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Default Re: Tax situation

Originally Posted by 1russell
New to this so apologies if its not relevant

My daughter is getting married in June and moving out to Dubai in July with her new hubby they have a 1 year old child.

I want to help get her tax situation sorted before she goes and ask the following

She has an income of around £8000 a year from uk properties. She will be keeping her UK bank account with her new address in Dubai.

When will the HMRC have to be informed of her moving and getting married on submission of the tax forms next year 2015/2016 ? or immediately. She has no job so my understanding is that the tax situation will not change it will remain nil. However if she gets a job in Dubai do we have to inform HMRC?
Thanks
She should complete form P85 to advise HMRC of where she will be living. Her income arising in the UK will remain subject to UK income tax if the total liability exceeds the Personal Allowance.

There is no need to inform HMRC if she is working is Dubai but bear in mind that she may have a liability to income tax depending on how many tax years (full or partial) she is out of the UK and the number of days in the UK per tax year.

Guide to the Statutory Residency Test here: Information on the new UK Statutory Residency Test | Financialuae's Blog

Hope that helps.
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Old May 12th 2015, 3:55 pm
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Default Re: Tax situation

Thanks all
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Old May 12th 2015, 5:51 pm
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Default Re: Tax situation

A wee tip from me, your daughter should consider opening a UK personal pension scheme (online SIPP or similar) before leaving the UK. Then pay £2,880 into the pension scheme this tax year and each of the following 5 tax years, and get a free £720 (20% tax relief) added automatically each year by HMRC. Everyone likes free money

Last edited by Johnnyboy11; May 12th 2015 at 5:55 pm.
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Old May 13th 2015, 4:04 pm
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Default Re: Tax situation

Thanks Jonnyboy
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Old May 14th 2015, 10:49 am
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Default Re: Tax situation

Hello 1russell,

I am assuming from the rental income mentioned your daughter is already registered for self assessment with HMRC as you must report income from property rental of more than £2,500 a year on a self assessment tax return.

Form P85 should only be completed if you are not required to complete a self assessment tax return for the tax year that you leave the UK.

As this is not the case for your daughter if she is not already registered for self assessment with HMRC she will need to do so.

Last edited by TopNik; May 14th 2015 at 10:54 am.
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