Tax Status

[Zimzam]

Hi

I have just been made an offer to join a construction company in Dubai and have used this forum for reference . It has been extremely useful. However I have one question which I hope someone could answer. I understand personal income is not taxed in Dubai but as a British citizen I am concerned that I will be taxed upon my return to the UK. Or does that only apply to the money that I remit back with me?

Many thanks

[MGYoung]

There is no easy answer to this one. Best advice I can give is to look at the HMRC website.

[Elphaba]

Originally Posted by Zimzam

Hi

I have just been made an offer to join a construction company in Dubai and have used this forum for reference . It has been extremely useful. However I have one question which I hope someone could answer. I understand personal income is not taxed in Dubai but as a British citizen I am concerned that I will be taxed upon my return to the UK. Or does that only apply to the money that I remit back with me?

Many thanks

If you move to the UAE, you complete HMRC form P85 to declare yourself non-resident for tax purposes. Your actual liability will depend on how long you remain non-resident. If you move out part way through a tax year you essentially need to remain non-resident for 4 years to be exempt from all tax. Bear in mind that calculations are from 6th April to 5th April.

You may spend no more than 89 days a year in the UK to retain non-resident status.

Once you are non-resident you should be able to send money back to the UK without a tax liability.

Please feel free to ask any other questions & I'll help.


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[Talisman]

If I were you I'd get some independant advice from an accountant. I'm due to leave the UK for Dubai soon, and my accountant has advised that when I leave I will no longer be liable for UK tax. He's the expert so I'll believe him

[Zimzam]

Many thanks for the advice . Now all I have to do is persuade the wife that this is a good idea!!!

[Elphaba]

Originally Posted by Talisman

If I were you I'd get some independant advice from an accountant. I'm due to leave the UK for Dubai soon, and my accountant has advised that when I leave I will no longer be liable for UK tax. He's the expert so I'll believe him

Actually it isn't that simple. And in my experience many accountants are not familar with non-residency rules, as few deal with these issues on a regular basis. You do NOT become automatically non-resident for tax purposes just by leaving the country.



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[cvjmje]

Originally Posted by Elphaba

If you move to the UAE, you complete HMRC form P85 to declare yourself non-resident for tax purposes. Your actual liability will depend on how long you remain non-resident. If you move out part way through a tax year you essentially need to remain non-resident for 4 years to be exempt from all tax. Bear in mind that calculations are from 6th April to 5th April.

You may spend no more than 89 days a year in the UK to retain non-resident status.

Once you are non-resident you should be able to send money back to the UK without a tax liability.

Please feel free to ask any other questions & I'll help.


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I left the UK to work in Dubai on the 9th April and issued a P85 to this affect. If i return to the UK one year later what would my tax liability be?

[Elphaba]

Originally Posted by cvjmje

I left the UK to work in Dubai on the 9th April and issued a P85 to this affect. If i return to the UK one year later what would my tax liability be?

Provided you spend no more than 89 days in the UK during the tax year you would qualify as being non-resident for tax purposes and thus would have no liability to income tax.

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[Anne07dxb]

I've just picked up on this thread from a Search, and wondered if anyone can answer...
If you come to Dubai to work (permanently) on April 5, 2009, but your wife and children remain in the UK until September 2009 (and live in your residence until then), will that more than likely effect your non-residency status for the first tax year??
Thanks.

[Andrew Farrant]

Hi Elphaba,

Thanks for the guidance, I have not been able to get any sense out of HMRC at all -

I am flying out on Friday ready to start work on Sunday 22nd March, so as of next tax year (April5th) will be non resident. Whilst I am in Dubai I still need to pay my UK mortgage so how do I do this please without incurring tax ? Are you saying that once declared ex-pat, provided I conform to ex-pat rules, 89 days etc, that I can send money back to my UK bank account WITHOUT incurring any tax liability ????

A straightforward idiots' guide would be very useful, this is as big a minefield as the whole degree debarcle I went through :-)