Avoiding UK Income Tax

[jholt76]

Hi, can anyone of you brits out there help me please!

I taking up a new job in Dubai (well, living in Dubai, office in Abu Dhabi) from August 16th.

I will be however bouncing backwards and forwards to the UK most weekends from the 16th Aug until around the end October when my wife and baby will move out. This coincides with the arrival of our shipping container.

Questions
1. How can I ensure that from 16th Aug I pay no UK income tax? Can I be classed as non-resident of the UK from the 17th August? or will it be from November onwards.

2. The UK office of my employer will pay my salary in sterling into a nominated bank account. Will this have to be an account outside the UK to ensure ZERO income tax?

3. would I need to set-up the offshore current account now, whilst I still have a UK address?

4. I understand that the number of days an expat can return to the UK in a financial year is going to be reduced to 30. Currently I believe it is 90? Does anybody know anything about this?. If I become non resident from 17th Aug then my weekend trips back to the UK upto end Oct will come out of the 30 days which will not leave me much for the rest of the year.

Thanks in advance
Jamie

[JJDubai]

Originally Posted by jholt76

Hi, can anyone of you brits out there help me please!

I taking up a new job in Dubai (well, living in Dubai, office in Abu Dhabi) from August 16th.

I will be however bouncing backwards and forwards to the UK most weekends from the 16th Aug until around the end October when my wife and baby will move out. This coincides with the arrival of our shipping container.

Questions
1. How can I ensure that from 16th Aug I pay no UK income tax? Can I be classed as non-resident of the UK from the 17th August? or will it be from November onwards.

2. The UK office of my employer will pay my salary in sterling into a nominated bank account. Will this have to be an account outside the UK to ensure ZERO income tax?

3. would I need to set-up the offshore current account now, whilst I still have a UK address?

4. I understand that the number of days an expat can return to the UK in a financial year is going to be reduced to 30. Currently I believe it is 90? Does anybody know anything about this?. If I become non resident from 17th Aug then my weekend trips back to the UK upto end Oct will come out of the 30 days which will not leave me much for the rest of the year.

Thanks in advance
Jamie

Check out the HMRC website. You probably won't like all that you read! Take care if you seek 'expert' advice - it can be very costly (and full of 'not our fault if what we say is wrong'.


HM Revenue & Customs: Non Residents: Frequently Asked Questions

Q2. When I go to live or work abroad, will I continue to pay UK tax?
A2. If you remain treated as resident in the UK for UK tax purposes, normally you will be taxable on your income arising in the UK and overseas. If you are treated as resident and pay tax outside the UK we can give appropriate credit for any tax paid abroad.

If you become treated as non resident, you will normally only be taxable on your income arising in the UK.

Q3. In what circumstances would I become non resident?
A3. 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 (that is 6 April to 5 April)
you spend less than 183 days in the UK during the tax year
your visits to the UK do not average 91 days or more a tax year over a maximum of four years
For visits to the UK, days of arrival and departure are not normally counted as days spent in the UK.

[Elphaba]

Originally Posted by jholt76

Hi, can anyone of you brits out there help me please!

I taking up a new job in Dubai (well, living in Dubai, office in Abu Dhabi) from August 16th.

I will be however bouncing backwards and forwards to the UK most weekends from the 16th Aug until around the end October when my wife and baby will move out. This coincides with the arrival of our shipping container.

Questions
1. How can I ensure that from 16th Aug I pay no UK income tax? Can I be classed as non-resident of the UK from the 17th August? or will it be from November onwards. You will be classed as non-resident from the date you leave the UK to take up residence elsewhere. You will only be assured of not paying tax in the curen tyear if you spend less than 90 days in the UK and obviously you will be there for more than that. if you are deemed nn-resident for tax purposes for the year 2011/12 (6th april 2011 to 5th April 2012) and have spend less than 183 days in the UK in the tax year 2010/11 yo may be granted the split year concession and not have to pay UK tax on your overseas earnings for this year. If you remain non-resident for five full tax years, this partial year will become exempt

2. The UK office of my employer will pay my salary in sterling into a nominated bank account. Will this have to be an account outside the UK to ensure ZERO income tax? Not if you are non-resident for tax purposes, but you are unlikely to be for this tax year. Strongly advise you are paid to an offshore account

3. would I need to set-up the offshore current account now, whilst I still have a UK address? Not necessarily, but probably easier to do so and then change the contact address.

4. I understand that the number of days an expat can return to the UK in a financial year is going to be reduced to 30. Currently I believe it is 90? Does anybody know anything about this?. If I become non resident from 17th Aug then my weekend trips back to the UK upto end Oct will come out of the 30 days which will not leave me much for the rest of the year.

HMRC rules are still 90 days, but things can always change.

Thanks in advance
Jamie

Yes, lots. I advise on tax and other financial issues on a professional basis. Answers in blue.

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[jholt76]

Originally Posted by Elphaba

Yes, lots. I advise on tax and other financial issues on a professional basis. Answers in blue.

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Many Thanks Elphaba,

Why do they make tax so complicated!

So in essence even though I will not be living in the UK and also receiving my salary into an offshore account; the tax man will still take money off me until April 2011?

I thought that I could get a ZERO tax code from the tax office as long as I can prove that I am non-resident. Ill give them a call and see what they say.

Cheers
Jamie

[Elphaba]

Originally Posted by jholt76

Many Thanks Elphaba,

Why do they make tax so complicated!

So in essence even though I will not be living in the UK and also receiving my salary into an offshore account; the tax man will still take money off me until April 2011?

I thought that I could get a ZERO tax code from the tax office as long as I can prove that I am non-resident. Ill give them a call and see what they say.

Cheers
Jamie

I don't think it is that complicated. In fact HMRC makes things much clearer than do the tax authorities in many other countries.

As I said in my response, you may be liable for UK tax to April 2011 - it depends on your circumstances and a HMRC concession. You should not have tax deducted from the date you declare yourself non-resident, but that does not mean they won't ask for it at a later date.
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[jholt76]

Originally Posted by Elphaba

I don't think it is that complicated. In fact HMRC makes things much clearer than do the tax authorities in many other countries.

As I said in my response, you may be liable for UK tax to April 2011 - it depends on your circumstances and a HMRC concession. You should not have tax deducted from the date you declare yourself non-resident, but that does not mean they won't ask for it at a later date.
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Ok, that makes more sense. Thanks
Ill contact them and discuss with them.

I will be looking for some investment opportunities later in the year - I want to make the most of my disposable income whilst in the UAE.
Maybe I could contact you outside of the forum to discuss in the near future.

[Elphaba]

Originally Posted by jholt76

Ok, that makes more sense. Thanks
Ill contact them and discuss with them.

I will be looking for some investment opportunities later in the year - I want to make the most of my disposable income whilst in the UAE.
Maybe I could contact you outside of the forum to discuss in the near future.

Please feel free. PM me for full contact details.

Good luck with your move
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[mamijaka]

Hello Elphaba, please can you help? I am confused with all this tax issues. I leave the UK in 2 weeks time to work in Abu Dhabi for a 1 year renewable contract. I hope to be there for a few good years. Been teaching in the UK for past 10 years. How do I go about avoiding the UK tax man. I realise I have to fill in some form 85 or something like that?? Just so confusing for a female going off on her own. I could send you my private details if you so wish for your help and advice and maybe be my financial adviser in the future through this move. thank you so much in advance. anxiously waiting to hear from you.

Originally Posted by Elphaba

I don't think it is that complicated. In fact HMRC makes things much clearer than do the tax authorities in many other countries.

As I said in my response, you may be liable for UK tax to April 2011 - it depends on your circumstances and a HMRC concession. You should not have tax deducted from the date you declare yourself non-resident, but that does not mean they won't ask for it at a later date.
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[Elphaba]

Originally Posted by mamijaka

Hello Elphaba, please can you help? I am confused with all this tax issues. I leave the UK in 2 weeks time to work in Abu Dhabi for a 1 year renewable contract. I hope to be there for a few good years. Been teaching in the UK for past 10 years. How do I go about avoiding the UK tax man. I realise I have to fill in some form 85 or something like that?? Just so confusing for a female going off on her own. I could send you my private details if you so wish for your help and advice and maybe be my financial adviser in the future through this move. thank you so much in advance. anxiously waiting to hear from you.

The PM facility is not activated until you have made five valid posts. You can contact me via the links at the end of this post.

[david.harmon]

Originally Posted by Elphaba

Yes, lots. I advise on tax and other financial issues on a professional basis. Answers in blue.

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Can you recommend a good offshore bank?