Expat returning UK and Tax
Jul 16th 2018, 3:50 pm
#1
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Thread Starter
Joined: Jan 2010
Location: Egypt
Posts: 30
Expat returning UK and Tax
Hi all.
Mine is a straightforward question but am struggling to see any precedent answers hence the reason to post. After 15 years overseas and the last 4 years in Saudi, i will be returning to the UK in September/October 2018. Following the UK tax rules, i am not currently a UK tax resident but would become a UK Resident for part of the tax year 2018/2019. This is because i will stay more than 46 days in the UK in the current tax year meaning residency is triggered November/December. I have earnings from April 6th 2018 generated from wages in Saudi through to September/October which are transferred to GBP into a UK account gained from an Employer with no UK ties. My question, would this be considered taxable income in the UK ? One suggestion made was to plan around this by staying out of the UK until April 2019 and then "start the slate clean" so to speak by becoming resident in a new tax year but that is a long time out of the country. Simple but not so simple ???
Mine is a straightforward question but am struggling to see any precedent answers hence the reason to post. After 15 years overseas and the last 4 years in Saudi, i will be returning to the UK in September/October 2018. Following the UK tax rules, i am not currently a UK tax resident but would become a UK Resident for part of the tax year 2018/2019. This is because i will stay more than 46 days in the UK in the current tax year meaning residency is triggered November/December. I have earnings from April 6th 2018 generated from wages in Saudi through to September/October which are transferred to GBP into a UK account gained from an Employer with no UK ties. My question, would this be considered taxable income in the UK ? One suggestion made was to plan around this by staying out of the UK until April 2019 and then "start the slate clean" so to speak by becoming resident in a new tax year but that is a long time out of the country. Simple but not so simple ???
Jul 19th 2018, 1:50 pm
#2
Happy To Help!
Joined: Nov 2012
Location: Everywhere
Posts: 165
Re: Expat returning UK and Tax
Hi Don63,
Residency is a very complex area now involving the statutory residence test (SRT) with effect from the 2013/14 tax year.
Ties such as home, work, family etc. in the UK may class you as UK resident for tax purposes regardless of where you reside and if classed as UK resident you would then be taxed on your worldwide income.
Therefore, it is very important that your individual circumstances are dealt with correctly to protect your residency status and exposure to UK taxation so I would strongly advise that you seek professional advice in relation to this.
Residency is a very complex area now involving the statutory residence test (SRT) with effect from the 2013/14 tax year.
Ties such as home, work, family etc. in the UK may class you as UK resident for tax purposes regardless of where you reside and if classed as UK resident you would then be taxed on your worldwide income.
Therefore, it is very important that your individual circumstances are dealt with correctly to protect your residency status and exposure to UK taxation so I would strongly advise that you seek professional advice in relation to this.
Jul 19th 2018, 4:08 pm
#3
Forum Regular
Thread Starter
Joined: Jan 2010
Location: Egypt
Posts: 30
Re: Expat returning UK and Tax
Thanks Top Nik. I have received professional advice that for Tax Year 2017/2018 i am NOT UK resident and to plan around liability for 2018/2019 carefully so as not to become resident for the current year - all depends what i do upon return with regards work and timing of arrival. I received this info over past few days and yes i now understand there is no black and white answer. Appreciate your response.
