mentalist

After 16 years in the Arabian Gulf, next year seems the best time to return home, primarily for the sake of our daughter's education. My question is whether to leave before the end of the 2014-15 tax year (ie. end-March) so my relatively substantial Terminal Benefits aren't taxed. I would prefer to earn as much as possible and leave in June/July but not if I lose up to 40% of my earnings and benefits accrued from April onwards. Am I allowed to receive my Terminal benefits before leaving I wonder? My current boss wouldn't mind if I made it worth his while. Does anybody know someone who has gone through the leaving process?

mikewot

I currently plan to arrive back in UK on 6th April 2016 so there can be no doubts about split tax year etc.

gottheTshirt

You can leave whenever - providing you comply with the rules you remain tax free up to when you return to UK. Leaving mid tax year usually has the best tax advantage if you are going to start work in UK.

mentalist

Please explain how you reach this conclusion. Surely you will get taxed on your annual income once you return to the UK.

mentalist

Just make sure you get your Terminal Benefits into your UK bank account before 5th as otherwise it may fall into the following tax year.

Johnnyboy11

If I read this note correctly, then you will probably qualify for the 'Split Year' Concession on returning to the UK, and will also be eligible for a full year's worth of Personal Allowances. So returning part way through the year has UK tax advantages if you plan to work.

Also, if you plan to dispose of any assets (property, shares, investments etc.) then you might want to do this before you become UK Resident again, otherwise Capital Gains Tax of up to 28% might apply on the Capital Gain above your c. £11k annual allowance.

mentalist

The Split Year Concession appears to require you to be returning to the UK to work rather than (as in my case) simply taking a year off after having worked overseas for umpteen years...maybe I could take a part-time job somewhere just to comply?

"However, by concession, HMRC will accept a ‘split-year’ treatment for individuals coming to the UK to work (or leaving the UK to work abroad). Consequently, if work is the reason why you have come to (or left) the UK you are only taxed in the UK from the date you arrive here. ‘Work’ for this purpose can be either employment or self employment. If you have come to the UK for any other reason, then the concession will not apply and you will be considered UK tax resident for the whole tax year."

Millhouse

out of interest... how old is your daughter? also... where is home for you?

mentalist

She will be 11yo in October. Home is wherever I lay my hat. I was educated in Bristol, if that helps.

Millhouse

Thanks... the reasons I asked the question was (1) your comment about quality of education, and (2) the wife - didn't think you ever planned to go back to blighty.

11 is a good age for her to return.

Meow

Split year concession is work related.

You really ought to stick with being a QS instead of trying to give advice on tax issues.

Blue Cat

got a job in the UK to go to?

Millhouse

bitch slap.

Meow

Call it what you like, but it's misleading to make out you're a tax expert only to give incorrect info.

I don't do it about brick counting.

Bahtatboy

As a Fellow of the steamed Royal Institution of Chartered Surveyors, I feel I ought to stick up for QSs everywhere and inform the uninformed that its not all about brick counting. But I can't be arsed.