90 day UK limit rule

[ricki]

Hi, I am moving to Dubai in May, and am in the process of applying for my NT tax code from the Inland Revenue.

I have been told that the limit of days I can spend in the UK is 90 days, or I risk being taxed should I exceed this limit.

Could someone please confirm how the 90 days is measured... per tax year? And if so, am I currently eating into my 90 days by being in the UK, meaning I will have used 30+ days of the allowance by the time I move to Dubai in May?

Thanks, your advice is much appreciated.
Ricki

[Elphaba]

This is my area.

HMRC has made various changes to the rules regarding days allowed in the UK when non-resident for tax purposes. The limit is now effectively 89 days and days travelling in and out are counted in the 89 days - previoulsy there had been a concession for many years that days travelling were ignored.

The days are counted per tax year 6th April to 5th April.

If you intend to become non-resident you need to complete and return HMRC form P85.

http://www.hmrc.gov.uk/cnr/p85.pdf

You may also claim for interes on bank and savings accounts to be paid to you gross by completing forms R85.

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[McBook]

Elpha is correct, i've looked into this and i'll be going the p85 route when i come out in May. I don't have any plans to come back though - the UK is going down the toilet. But if you're planning to return within the year you'd better watch out - you're right to think your time in the UK from 6 Apr to whenever you leave will be included in the 90 days.

Hope you get it sorted!

[Elphaba]

Elpaba is correct as she advises on these issues, as well as others, for a living...




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[ricki]

Thanks guys! So please confirm, if I move out there on the 6th July, I can only visit the UK for about 29 days from then until the 5th April, in order to remain N/A for UK tax?

Cheers,
Ricki

[Elphaba]

Originally Posted by ricki

Thanks guys! So please confirm, if I move out there on the 6th July, I can only visit the UK for about 29 days from then until the 5th April, in order to remain N/A for UK tax?

Cheers,
Ricki

As I said a total of 89 days in the UK is permissable during a standard tax year.

Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if

• your absence and employment from the UK covers a complete tax year (i.e. 6 April to
• 5 April), and
• you spend less than 183 days in the UK during the tax year, and
• your visits to the UK do not average 89 days or more a tax year over a maximum of 4 years.

So whilst you could spend more than 89 days in the UK this tax year, you could have a tax liability if you are not non-resident for 4 years.

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[LittleJon]

Hi, I've been reading this forum ahead of possible relocation and have found it incredibly useful, it's a brilliant resource. However, at the risk of appearing incredibly dense, I'm afraid I don't quite understand the impact of this clause and hence the answer to the question:

• your absence and employment from the UK covers a complete tax year (i.e. 6 April to 5 April),

- do you have to be out of the country and does your contract need to have started on 6 April in order to be able to claim non-resident status for that tax year or can one leave the country later in the year provided the total time spent in the UK before and after departure is less than 89 days?

[Elphaba]

Originally Posted by LittleJon

Hi, I've been reading this forum ahead of possible relocation and have found it incredibly useful, it's a brilliant resource. However, at the risk of appearing incredibly dense, I'm afraid I don't quite understand the impact of this clause and hence the answer to the question:

• your absence and employment from the UK covers a complete tax year (i.e. 6 April to 5 April),

- do you have to be out of the country and does your contract need to have started on 6 April in order to be able to claim non-resident status for that tax year or can one leave the country later in the year provided the total time spent in the UK before and after departure is less than 89 days?

Is essence, yes. You have to be out of the UK for a full tax year, less no more than 89 days. Your contract doesn't have to start on 6th April, but just add up the days in the UK over the full year.

If you fit the criteria and have worked in the UK for say, one month, you should be abe to reclaim any tax paid as you qualify as a non-resident. Just remember to sent a form P85 to HMRC to claim non-residency status.

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[McBook]

Originally Posted by LittleJon

Hi, I've been reading this forum ahead of possible relocation and have found it incredibly useful, it's a brilliant resource. However, at the risk of appearing incredibly dense, I'm afraid I don't quite understand the impact of this clause and hence the answer to the question:

• your absence and employment from the UK covers a complete tax year (i.e. 6 April to 5 April),

- do you have to be out of the country and does your contract need to have started on 6 April in order to be able to claim non-resident status for that tax year or can one leave the country later in the year provided the total time spent in the UK before and after departure is less than 89 days?

Hi Jon

I'm sure Elphaba will reply to you in more detail later but here's my situation - I'm leaving the country on 21 May and will declare myself as having permanently left (i'll get a tax refund for tax already paid). You do this with a P85 form from HMRC. You need to send them your P45 and there is no requirement to be out of the country at the time of completing the form. I think you can do this no matter how far it is through the tax year although you wont get much tax back if you leave it too late. Problems arise if you want to come back to the UK too soon after leaving (see posts above).

hope this helps! although on reading it back to myself it is a bit of a ramble

[LittleJon]

Thanks both, that clears it up brilliantly, much appreciated.