UK Income Tax

Old Feb 20th 2008, 2:38 pm
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Default Re: UK Income Tax

Originally Posted by t19hlr View Post
I called twice yesterday and on both occassions I was advised that as a non-resident any money sent back to the UK will not be taxed. When I called the second time the lady put me through to customs as she thought there may be a customs issue. Customs told me you are able to bring cash of upto Euros10,000 without declaring it. Anything over that needs to be declared but only because of money laundering reasons, no tax is applied to it.

But as Meow is an expert in this area I still have my doubts!!

Thanks for that, you've made me feel a little better. I would feel a whole lot better if I had it in writing!
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Old Feb 20th 2008, 3:29 pm
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Default Re: UK Income Tax

Originally Posted by pangy-p View Post
Thanks for that, you've made me feel a little better. I would feel a whole lot better if I had it in writing!
wow! thats so so helpful thanks t19hlr x
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Old Feb 21st 2008, 7:40 am
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Default Re: UK Income Tax

Let me try & clarify - a perons doesn't immediately become exempt from UK tax just by leaving the country! Just because you are overseas it does not mean that you are non-UK resident from day one.

This depends on when in the tax year you move (90 day & 183 day rules) and completion of the relevant paperwork. Sounds as if many of you will be moving later in the tax year (which starts 6th April) and your residency/tax status will depend on how long you remain outside the UK. The longer the better.

Income tax and capital gains tax are also different matters with differing liabilities. In a first year is is highly likely that many people wil be caught for income tax.

Everyone's situation is different. And I can't tell you how many mistakes HMRC have made over the years...


Right, I'm bored with this now & need to go & do some work that will earn me money! Any outstanding PMs will be dealt with in the next few days.
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Old Feb 21st 2008, 8:51 am
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Default Re: UK Income Tax

Originally Posted by Meow View Post
Let me try & clarify - a perons doesn't immediately become exempt from UK tax just by leaving the country! Just because you are overseas it does not mean that you are non-UK resident from day one.

This depends on when in the tax year you move (90 day & 183 day rules) and completion of the relevant paperwork. Sounds as if many of you will be moving later in the tax year (which starts 6th April) and your residency/tax status will depend on how long you remain outside the UK. The longer the better.

Income tax and capital gains tax are also different matters with differing liabilities. In a first year is is highly likely that many people wil be caught for income tax.

Everyone's situation is different. And I can't tell you how many mistakes HMRC have made over the years...


Right, I'm bored with this now & need to go & do some work that will earn me money! Any outstanding PMs will be dealt with in the next few days.
Thanks Meow you've been great help.
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Old Feb 21st 2008, 1:42 pm
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Default Re: UK Income Tax

All this is somewhat worrying.

Ok, I am currently considering an offer. It is with a UK employer but it will be an overseas assignment in AD on a rolling one year contract (apparently there resourcing system only allows this). The view is that I will be in AD for a number of years but it is likely that I won't be going until early May.

However it is likely with my current job I will be spending most of April in Saudi on a temp assignment. I am currently renting in the UK and when I move to AD I will essentially hold no property or place of residence in the UK.

I will be on the UK payroll system but can have my income paid into a bank account of my choosing (offshore). I currently have loans etc in the UK, as well as child support that will probably equate to me spending £14k in the UK a year.

If I stay out of the UK for a complete tax year will the taxman still try and screw me in the first year. Obviously with all the additional benefits in kind (housing allowance, etc) I am somewhat concerned that I will end up with a hefty bill. Should I be?

Sorry for any inconvenience caused in answering.
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Old Feb 21st 2008, 1:48 pm
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Default Re: UK Income Tax

If you are moving overseas in May you should be close enough to the start of the tax year for 2008/09 for you to apply to be fully non-resident for tax purposes from outset. This of course is provided you are paid offshore and your duties for the UK company are performed outside of the UK.

Whether you have property or a place of residence in the UK has no relevance to your tax status as you are still UK domicile.

The company account should ensure that you are paid in such a way that you are not liable for UK taxation.
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Old Feb 21st 2008, 2:07 pm
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Default Re: UK Income Tax

Thanks Meow, as has been stated elsewhere - you're a star!!
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Old Mar 24th 2008, 10:56 pm
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Default Re: UK Income Tax

hi all,

i wonder if someone can give me a bit of advice? i'm taking ownship of my dubai-based property and am considering moving out to Dubai with wife and daughter, once i get my residency visa.

i'm a permenent IT employee for a UK-based (american owned) company, who have agreed to me doing my job from home - even if its in Dubai.

i plan to continue receiving income from my UK employer, but as a soon to be UK nonresident, i dont want to pay UK tax.

is this a straight case of the tax office being notifed once i've declared myself non UK domicile, so they no longer deduct the tax, or do i need to pay the tax, then claim it back?

Many thanks in advance!

Joannides
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Old Mar 25th 2008, 4:11 am
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Default Re: UK Income Tax

Originally Posted by joannides View Post
hi all,

i wonder if someone can give me a bit of advice? i'm taking ownship of my dubai-based property and am considering moving out to Dubai with wife and daughter, once i get my residency visa.

i'm a permenent IT employee for a UK-based (american owned) company, who have agreed to me doing my job from home - even if its in Dubai.

i plan to continue receiving income from my UK employer, but as a soon to be UK nonresident, i dont want to pay UK tax.

is this a straight case of the tax office being notifed once i've declared myself non UK domicile, so they no longer deduct the tax, or do i need to pay the tax, then claim it back?

Many thanks in advance!

Joannides
Your payroll department has to sort this out because in the UK if you are due to pay tax then it has to be deducted at source. If the payroll dept deducts the wrong amount and the taxpayer cannot be pursued then the company becomes liable. If I was your pay clerk I would take instructions from the revenue over this - not a web forum.
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Old Mar 25th 2008, 4:41 am
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Default Re: UK Income Tax

Originally Posted by Meow View Post
Let me try & clarify - a perons doesn't immediately become exempt from UK tax just by leaving the country! Just because you are overseas it does not mean that you are non-UK resident from day one.

This depends on when in the tax year you move (90 day & 183 day rules) and completion of the relevant paperwork. Sounds as if many of you will be moving later in the tax year (which starts 6th April) and your residency/tax status will depend on how long you remain outside the UK. The longer the better.

Income tax and capital gains tax are also different matters with differing liabilities. In a first year is is highly likely that many people wil be caught for income tax.

Everyone's situation is different. And I can't tell you how many mistakes HMRC have made over the years...

.
I think that there is another factor which is who benefits from your services. If your work in the UK and are domiciled (yes- deliberate choice of words) in the UK and then you go abroad and do the same job then I think you are still liable for tax because the beneficiary of your services is within the UK. So your non-resident status in terms of where you physically live then makes no difference to your tax status. Residency is not just where you live but is an acknowledgement of tax status and the two are not always the same. I think that this is why the civil servants and troops who live abroad do not concede their tax status. Contradicting this is airline crew who also have special rules allowing them to be expatriated because their services may not be obviously related to the UK. All of this has a thread of logic to it if you consider the short term absentee on a business trip - who still pays tax though he is non-resident for that period.

I think that people who go abroad and do the same job from abroad cannot assume non-residential tax status. So they have to pay tax. Not sure about SS.

Now I believe that if they were not domiciled then it would be a different matter but then they could work in the UK tax free. But that would be impossible.
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Old Mar 25th 2008, 2:26 pm
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Default Re: UK Income Tax

This thread is so useful! I'm glad I found it.
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Old Mar 25th 2008, 3:03 pm
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Default Summary

I am moving to Abudhabi to work on 4/4/2008 and from this forum and speaking with HMRC I have concluded the following:


(1)- To get real benefit of Tax free salary you have to work for atleast 1 Tax year. i.e. if from 6th of April to 5th of April of following year. but if you start lets say in November of 2008 then you have to work till 5th of April of 2010 to be classified as full tax year.

(2)- you must not spend more than 90 days on average over 4 years in UK

(3)- Complete P85 form from HMRC "Leaving the United Kingdom", available from HMRC website before you leave UK.

(4)- Your salary could be paid tax free into your UK account altough you may wana get paid in UAE to avoid tax on interest from your savings. You can have UK bank account in Jersey which will have UK sort code and account number and set up direct debits to pay you bills, loans, mortgages in UK. Most high street banks such as Barclays, NatWest etc do them.

(5) - Its cheaper to get paid in £ in UAE account and then transfer money to UK or Jearsey off shore account, as Transfers cost 50AED with most UAE banks (£7.5 approx) as compared to get paid in uk or offshore account and then transfer to UAE , usually £25-£30.

(6) If you own a house in UK and renting it out via agent or directly then complete "Overseas Landlord Form" from HMRC to get rent Gross (before tax) and register for "Self Assessment" with HMRC and you will at the end of tax year receive SA forms. If the property is jointly owned then both of you will have to SA.

(7) remember your Mortgage Interest you pay, agents fees, insurances and maintenance costs, Council Tax payable can be deducted from the tax able rent. Also if thats the only form of earning you have then you also have £5250 tax allowance (2007-2008) before you pay basic rate of tax @10%
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Old Mar 25th 2008, 4:35 pm
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Default Re: UK Income Tax

Originally Posted by Old Lob View Post
I think that there is another factor which is who benefits from your services. If your work in the UK and are domiciled (yes- deliberate choice of words) in the UK and then you go abroad and do the same job then I think you are still liable for tax because the beneficiary of your services is within the UK. So your non-resident status in terms of where you physically live then makes no difference to your tax status. Residency is not just where you live but is an acknowledgement of tax status and the two are not always the same. I think that this is why the civil servants and troops who live abroad do not concede their tax status. Contradicting this is airline crew who also have special rules allowing them to be expatriated because their services may not be obviously related to the UK. All of this has a thread of logic to it if you consider the short term absentee on a business trip - who still pays tax though he is non-resident for that period.

I think that people who go abroad and do the same job from abroad cannot assume non-residential tax status. So they have to pay tax. Not sure about SS.

Now I believe that if they were not domiciled then it would be a different matter but then they could work in the UK tax free. But that would be impossible.

thanks, Old Lob, thats very useful.
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Old Apr 22nd 2008, 7:37 pm
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Default Re: UK Income Tax

If you leave the UK without giving the tax office your forwarding address, how can they track you if you move to abroad, (Australia, Canada, U.S.A.)???
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Old Apr 23rd 2008, 4:52 am
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Default Re: UK Income Tax

Originally Posted by Nikki73 View Post
If you leave the UK without giving the tax office your forwarding address, how can they track you if you move to abroad, (Australia, Canada, U.S.A.)???
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Presumably they would only want to track you if you owed them money.

Consider this question: "If you leave the UK after robbing a bank without giving your forwarding address, how can they track you if you move to abroad,(Australia, Canada, U.S.A.)???"

If you ever go back to the UK and need the health service, need to re-enter the tax system.....
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