Duffster

Hi

Am I correct in understanding that so long as I don't spend more than 90 days in UK over the 2 year period from leaving UK and having NT tax code, none of my overseas (UAE) earnings will be subject to income tax?

Does the 2 year period start once I leave or does it have to coincide with UK tax year? i.e April.

What about if I leave intending to be gone for 2 years but for some reason come back after 1 year - do I get stung for UK income tax or is there a way to "shield" it from the tax man

Keeping my house in UK but living in UAE doesn't mess with UK residency status does it.?

Any pointers welcome as I need to do my homework on this aspect of a move!

Thanks
Mike

Foxes

doesnt neccessarily have to be 2 years - as long as you are out for a full calender tax year..in my humble unprofessional opinion !!!

Millhouse

this information is wrong.

hnd

Wrong

Foxes

brief but unsubstantiated inputs....

UK PM 81

This is an interesting thread. I have a question, best put forward as a scenario.

If one was to leave the uk (say next month, Feb 11) and get employment in the ME region. For arguments sake lets say you are made redundant after 8 months (c. Oct 11) and in the process saved up £10k.
If you couldnt find any work within the region and were forced to come back to the UK, clearly the tax man would want his cut because of the HMRC tax rules in place.

Now the question is, if one comes back to the uk, doesnt declare the money* and gets uk employment in the meantime (say Dec 11). When asked by the tax man re monies made overseas; tells him, 'honest gov, didnt save a penny as it was all spent!'.

* Lets leave the moral issue aside for the timebeing - as it would be clearly wrong and under handed.

I.R cant prove anything!?! Right? It certaintly wouldnt be in their best interest to spend their time/effort to investigate and prove?

Nevertheless am i right in my assumption/scenario?

Your thoughts please? 


Bijilo123

You are liable for tax on your overseas earnings. Secondly you have lied which is not a moral isue, it is a criminal offense.

How would we know if the Revenue would discover you?

But the banking system would know and the Revenue has access to the bankng system.

Millhouse

Earnings and savings are two different things.

Millhouse

well it's been sort of done to death on here... just search for Meow's posts... about 40% of them are free tax advice.

Anyway, the point it is tax years not calendar years... if you get the timing wrong it could be almost 2 years.

Meow

If you plan to be UK non-resident for tax purposes than it is the tax years that are relevant, 6th April to 5th April. Overseas earnings in partial years may be liable to UK income tax, but it depends on exact dates and days spent in the UK.

See this link from my website/blog for general info for British expats.

http://financialuae.wordpress.com/20...ritish-expats/

Meow

You would have been UK non-resident for just seven months so are liable for UK income tax on all of your overseas earnings.

If you had been non-resident for a full tax year (less 90 days permitted in the UK) then overseas earnings would not be subject to UK tax.

Don't try and be clever and evade tax. You'll be penalised when caught (and rightly so). You are small fry, but it will be very easy to prove that tax is owed.

Foxes

Hi there - well done on providing useful info to the OP. I suggest you re-read my initial post and you will find that your initial assessment of my post was off the mark.

To the OP - I am aware of an individual of worked less than 19 months in the UAE, returned back to the UK, consulted with HMRC, and paid no tax for earnings in the UAE, and then returned back to the middle east. I suggest the OP be as frank with HMRC at all times. Completing a full tax year is of importance - which does not neccessarily mean that you have to complete a 2 year stint as an ex-resident.

I can also vouch for Meow as a goldmine of info

The HMRC appear to have improved their website and FAQ's so it is a bit clearer for reference.

best of luck !!

co durham boy

Never paid tax for over 20 years......Just get a decent advisor .

UK PM 81

Dont disagree with what you say above.

However what if you dont bring the money into the UK or the UK banking system and its held in an offshore account.
Surely this would not be liable to any tax?

Also if one was to purchase (with the money in question) some land in a foreign country, surely you cant pay UK tax on that? As persumabley there would be some local tax paid from that country.

Meow

It doesn't matter where the money is the OP will have a liability to UK income tax. The issue is of UK residence for tax purposes not actual location of the individual or the money.