mattleppard

Hi there
First off, as a long-time user of many forum boards, I do apologise if this question has been asked and answered elsewhere. If so, or if there is an overarching set of notes to taxation queries, please do point me to it and I apologise for treading old ground.

Other than that, I'll keep it simple. I am British, 46, and I've been living and working abroad for close to 16 years now and am currently based in Jakarta. Myself, my Indonesian spouse, the PR director for a 5-star hotel here, and our 3yo son and unborn daughter, are thinking of moving to the UK within a year or two. I've started planning and I've already contact the relevant authorities about my social security status.

But wading through the HMRC pages and updates and so on about my tax status is daunting. Can anybody point me to something simple, or even let me know my basic tax status here on this forum?

My details are as follows:

1. I left the UK in 2000 having worked for 10+ years as a registered taxpayer and with all social security contributions paid. I have a copy of my P60 form from my last UK employer. But I did not formally inform anyone or any government arm that I was officially "leaving".
2. I have worked in Thailand and Indonesia in a number of positions, with tax fully paid and with all the legal paperwork, although I am not currently employed and have not been for 10 months.
3. I have never transferred any substantial sums of money (none that I can think of, in fact) or any salary or anything else back to the UK. However, sums of money have been transferred to me overseas as gifts or small lump sums from inheritances.
4. I have registered (some time ago and since when my circumstances have changed) with the FCO as an overseas citizen.

On the basis of the above, will I face any tax obligations on my return?

Many, many thanks in advance of any info.

cyrian

I don't understand what tax obligations you are thinking of.
The vast majority of UK taxpayers don't complete a tax return and are simply dealt with by PAYE.
Unless you did not pay some tax before you left then you have been tax resident elsewhere and therefore have no tax liabilities in the UK.
You should have notified your local Council; the DWP and HMRC that you were leaving but you didn't.
You should check the residency status of your wife and family before returning to the UK. There are load of posts about this on the forum - do a search.
You may also want to check your N.I. status with the option to paying missing years for your State Pension.
Good luck

mattleppard

Thanks for the swift response; I had this terrible fear all of a sudden that I may somehow have to pay income tax on all my non-UK earnings. It appears not, and thanks for the reassurance. I just wanted to start getting my ducks in line or whatever the saying is.

Yes, I should have notified all those gov't arms, but to be honest I didn't think I was going to be away for more than a year or so. I guess that happens to a lot of people.

Have already contacted about social security, and as to my wife's and family's status, that's a whole new level of uber-complication and not one for this thread. I'll do as you say and search before jumping in with a newbie thread on that.

Again, thanks for your patience and for not flaming me for asking such a basic question.

michali

You will not have to pay any taxes on your non-UK earnings but if you return in the middle of a tax year, you should declare any earnings accrued abroad only within that year. There is something called split year treatment and my husband was hoping to go that route as he came to the UK at the end of May. However, even though he set out his case in the minutest detail, they did not accept his argument! He just paid tax on income for the two months he was abroad in that tax year. If you have been unemployed for ten months, I cannot see that you would have to declare any income and, even if you did, your income would not exceed your personal allowance.

mattleppard

Wow, thanks for the swift answer. I'll look into that.

Bermudashorts

I agree that there are no particular tax issues for y to worry about upon your return.

Had you been overseas for a while or just a short period?

If you had been overseas for some time, then I can see no reason why you would not be eligible for split year treatment. And your husband was not liable to UK tax on his overseas earnings.

I would not have even tried to prove my case, I just took it and did not declare my Australian earnings prior to my return - as I have no obligation to do so.

nun

I don't see any nasty UK tax issues. But you should investigate the status of any foreign pensions and SS before you return to the UK and also any foreign investments that you have before they become liable to UK tax on your return.

mattleppard

Thanks for that. Actually, I have about 10k (GBP) saved here but nothing in the UK at all. No pension here in Indonesia or in the UK and no savings. Well, maybe 50p in an old NatWest account. I'm thinking it would be wise to have a little nest egg saved here in Indonesia and not bring it to the UK.

nun

If you return to the UK you will most likely be taxed on your worldwide income. Are the savings just in a bank account of something like stocks and shares?

mattleppard

In a bank account here in Indonesia jointly named with my wife.

Why taxed on worldwide income? That goes against what other posters have said and also replies on other forums? I thought that as the incomes was earned overseas, for 16 years, and never transferred to the UK, I'd have no tax liabilities. Otherwise the tax burden would be ridiculous.

Bermudashorts

No other people have not said you are not taxed on worldwide income. Once you are back in the UK you definitely will be taxed on worldwide income - but only that arising from the date you move back.

mattleppard

Ah, I see. OK, that makes sense. Sorry for my misunderstanding. There won't be any other worldwide income anyway. I'm no property baron, company director, and so on.

TopNik

Hi mattleppard,

Check out this website which you will find of use:

http://www.pensionsadvisoryservice.o...-contributions

mattleppard

Great. Thanks for the tip.

TopNik

You are most welcome!