1 year contract in Vietnam - Split year treatment
Jun 20th 2022, 2:26 pm
#1
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Joined: Jun 2022
Posts: 2
1 year contract in Vietnam - Split year treatment
Hi all, I have a tax query, basically I have been offered an expat contract in the Far-East (Vietnam) for a year, so potentially from this August to July 2023 (right in the middle of the tax year, very unfortunate). 
I have been looking at some old posts about split year treatment but there are quite old and not very clear.
Since I will be leaving the UK to work full time overseas and I will be less than 183 days in the UK my understanding was that I could get away as Non-Resident status and dot not pay taxes on my worldwide income? Am I right on this? I took the info from the bellow HMRC statement:
Begin full time work outside the UK
If you work overseas for 35+ hours per week, spend fewer than 30 days working full time (i.e. more than three hours per day) in the UK and spend fewer than 91 days in the UK, you would be considered a non-resident based on the sufficient hours overseas test.
Or perhaps the below HMRC statement could work for myself? (I do not currently own any house, just renting a room).
You cease to have a home in the UK
If you move abroad during the tax year, no longer have a home in the UK and subsequently spend fewer that 16 days in the UK, split year treatment may apply to you. However, this is on the provision that you are either a tax resident of another country within six months or have your only home by the end of six months
I will have the same issue on my return to the UK correct? Unless I come back on April 2024 which is not very realistic.
Has anybody experience a similar situation or could help me?
Many thanks!
Ethan
I have been looking at some old posts about split year treatment but there are quite old and not very clear.
Since I will be leaving the UK to work full time overseas and I will be less than 183 days in the UK my understanding was that I could get away as Non-Resident status and dot not pay taxes on my worldwide income? Am I right on this? I took the info from the bellow HMRC statement:
Begin full time work outside the UK
If you work overseas for 35+ hours per week, spend fewer than 30 days working full time (i.e. more than three hours per day) in the UK and spend fewer than 91 days in the UK, you would be considered a non-resident based on the sufficient hours overseas test.
Or perhaps the below HMRC statement could work for myself? (I do not currently own any house, just renting a room).
You cease to have a home in the UK
If you move abroad during the tax year, no longer have a home in the UK and subsequently spend fewer that 16 days in the UK, split year treatment may apply to you. However, this is on the provision that you are either a tax resident of another country within six months or have your only home by the end of six months
I will have the same issue on my return to the UK correct? Unless I come back on April 2024 which is not very realistic.
Has anybody experience a similar situation or could help me?
Many thanks!
Ethan
Jun 24th 2022, 3:04 pm
#2
Forum Regular
Joined: Oct 2015
Posts: 204
Re: 1 year contract in Vietnam - Split year treatment
Hi all, I have a tax query, basically I have been offered an expat contract in the Far-East (Vietnam) for a year, so potentially from this August to July 2023 (right in the middle of the tax year, very unfortunate).
I have been looking at some old posts about split year treatment but there are quite old and not very clear.
Since I will be leaving the UK to work full time overseas and I will be less than 183 days in the UK my understanding was that I could get away as Non-Resident status and dot not pay taxes on my worldwide income? Am I right on this? I took the info from the bellow HMRC statement:
Begin full time work outside the UK
If you work overseas for 35+ hours per week, spend fewer than 30 days working full time (i.e. more than three hours per day) in the UK and spend fewer than 91 days in the UK, you would be considered a non-resident based on the sufficient hours overseas test.
Or perhaps the below HMRC statement could work for myself? (I do not currently own any house, just renting a room).
You cease to have a home in the UK
If you move abroad during the tax year, no longer have a home in the UK and subsequently spend fewer that 16 days in the UK, split year treatment may apply to you. However, this is on the provision that you are either a tax resident of another country within six months or have your only home by the end of six months
I will have the same issue on my return to the UK correct? Unless I come back on April 2024 which is not very realistic.
Has anybody experience a similar situation or could help me?
Many thanks!
Ethan
I have been looking at some old posts about split year treatment but there are quite old and not very clear.
Since I will be leaving the UK to work full time overseas and I will be less than 183 days in the UK my understanding was that I could get away as Non-Resident status and dot not pay taxes on my worldwide income? Am I right on this? I took the info from the bellow HMRC statement:
Begin full time work outside the UK
If you work overseas for 35+ hours per week, spend fewer than 30 days working full time (i.e. more than three hours per day) in the UK and spend fewer than 91 days in the UK, you would be considered a non-resident based on the sufficient hours overseas test.
Or perhaps the below HMRC statement could work for myself? (I do not currently own any house, just renting a room).
You cease to have a home in the UK
If you move abroad during the tax year, no longer have a home in the UK and subsequently spend fewer that 16 days in the UK, split year treatment may apply to you. However, this is on the provision that you are either a tax resident of another country within six months or have your only home by the end of six months
I will have the same issue on my return to the UK correct? Unless I come back on April 2024 which is not very realistic.
Has anybody experience a similar situation or could help me?
Many thanks!
Ethan
Vietnam: tax treaties - GOV.UK (www.gov.uk)
