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Tax Advice...Please

Tax Advice...Please

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Old May 3rd 2011, 5:44 pm
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Default Tax Advice...Please

I am looking to receive some tax advice as a Brit returning to the UK.

In January 2005 I left the UK and took a position for a Financial Consultancy located in Mexico on a commission only basis. At the time I was 24 years old and was only expecting to be in Mexico for a short time. The company paid my commissions into my UK bank account.

I didn't inform any of the UK authorities when I left.

About a year later I was given a local salary and I paid tax in Mexico on this amount. I still received additional commissions which went to my UK bank account and later to a new dollar account in the Isle of Man. I felt that because I wasn't living in the UK for move than 90 days I wouldn't be subject to any tax.

At the end of this year I am planning on moving back to the UK after 7 years in Mexico. Alarm bells have started ringing about how I have been working for the last 6-7 years and the fact I haven't informed any government department that I was working outside the UK.

Anything I need to consider during the time of my return?

Would I be subject to pay any UK taxes on the money i made while I was outside the UK?

Thanks in advance.
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Old May 3rd 2011, 7:09 pm
  #2  
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Location: Originally from the U.K. and now back in Houston
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Default Re: Tax Advice...Please

Originally Posted by heehehehe
I am looking to receive some tax advice as a Brit returning to the UK.

In January 2005 I left the UK and took a position for a Financial Consultancy located in Mexico on a commission only basis. At the time I was 24 years old and was only expecting to be in Mexico for a short time. The company paid my commissions into my UK bank account.

I didn't inform any of the UK authorities when I left.

About a year later I was given a local salary and I paid tax in Mexico on this amount. I still received additional commissions which went to my UK bank account and later to a new dollar account in the Isle of Man. I felt that because I wasn't living in the UK for move than 90 days I wouldn't be subject to any tax.

At the end of this year I am planning on moving back to the UK after 7 years in Mexico. Alarm bells have started ringing about how I have been working for the last 6-7 years and the fact I haven't informed any government department that I was working outside the UK.

Anything I need to consider during the time of my return?

Would I be subject to pay any UK taxes on the money i made while I was outside the UK?

Thanks in advance.
Dear Heehehehe

You might want to look here:

http://www.direct.gov.uk/en/MoneyTax...heUK/DG_078445

You should have filled out a P85 form as advised here, but of course as you have been out of the country for a few years, that form may not have existed when you left (I did not tell anyone when I left the UK a few years ago!)

But either way, you should not be liable for UK tax on your earnings in Mexico (although whether you are paying tax in Mexico on your commissions paid into the UK is another matter).

I would consider giving HMRC a call to see even at this time they want a P85 from you. The contact details can be found on the same website.

Hope this helps

Tahiti
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