HLJ

I've been an expat for over 15 years, though I still file tax returns in the UK because I have property there (I don't know if that matters). My current contract finishes at the end of August 2025, and I am thinking of going back to the UK for a year or so for some family stuff. I do not want to pay UK tax on my current overseas earnings. As I understand it, when I go back, I declare myself resident again and split the tax year into before/after. Anything I earned before wouldn't be subject to UK tax, but anything after that would be. Is that correct so far?

If so, is the date for whether earnings are taxed (before/after returning) based on when you earned the money or when you received it? My final salary for August 2025 will be paid out in the first week of October 2025, and then my end-of-contract bonus and any vacation days will be paid out in November 2025. Could I go back in September, after the job, work and contract have ended, or do I have to wait, potentially until December, until all the money is in?

If I have to wait to December, I'd be more inclined to do 3 months in each tax year and cut the trip back to 6 months. I'd rather stay for 12 months if I can, but not if it'll land me with a big tax bill or a ton of hassle.

E2Brutus

I am interested in the answer.

In the US we are taxed on the calendar year, and in the UK it is 6 April to 5 April.

It is a bit confusing as if I leave the US in December to return to UK, I think the UK would want me to file taxes for a period where I already filed them in the US.

I had a 1 hour call with a very good tax advisor a few years ago, but I then didn't move and lost the notes. I will call him again.

durham_lad

When we returned to the UK and later filed our first UK tax return we filed them as a split year. We had moved back in May and no income from our previous time in the USA was taken into consideration.

I don’t know about the exact timing but I believe the UK taxes income on a cash basis when it is received. I didn’t really have that earned income question because I was only receiving pensions but my pension is paid in arrears on the first of the month and I’m sure there was no attempt to split the June 1st payment up to account for the time in May I was in the USA.

https://www.gov.uk/tax-foreign-income/residence