TAX question

[pbnf]

Hey guys

I have been offered a role in Dubai and we are very excited about moving there for the next few years.

The question i have is, when i am ready to return back to the UK, will i have to pay tax on my saving? is there qany way to ensure this money stays tax free????????

Any help or advice will be welcomed.

Thanks

[Elphaba]

Firstly bear in mind that the act of leaving the UK does not make you automatically non-resident for tax purposes. You need to complete and return HMRC P85 and if you leave part way through a tax year (as opposed to at the very start) you would need to remain non-resident for several years for all your earnings to remain tax-free.

If you bring monies back onshore when if you take up residence again you are liable to tax, so you need to move monies gradually taking into account annual allowances. It is always best to plan a return to the UK at least a full tax year ahead.

Even if you are a UK resident you may keep monies in an offshore account, but will have a tax liability on any money that you take onshore.

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[DmE]

Elphaba - i am coming out to work in Abu Dhabi in August and plan to stay for 2 years. I will be sending money back every months to meet committments. Are there limits on what i can send back - should I save offshore or put the money in a savings account back here? From what i have been told as well as notifying the Revenue & Customs via IR85 you can notify your Bank and they will not tax your interest..

Why is nothing ever straight forward!!! I appreciate your views on this

[JulesLise]

Originally Posted by Elphaba

Firstly bear in mind that the act of leaving the UK does not make you automatically non-resident for tax purposes. You need to complete and return HMRC P85 and if you leave part way through a tax year (as opposed to at the very start) you would need to remain non-resident for several years for all your earnings to remain tax-free.

If you bring monies back onshore when if you take up residence again you are liable to tax, so you need to move monies gradually taking into account annual allowances. It is always best to plan a return to the UK at least a full tax year ahead.

Even if you are a UK resident you may keep monies in an offshore account, but will have a tax liability on any money that you take onshore.

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Elphaba - thank you for this information. I have just been offered a job as legal counsel for Du Telecom and will be looking to move to Dubai from London sometime mid-August. I am doing some research on tax because I had heard that I may have a tax liability when I eventually return to the UK. I have printed off some information from the Inland Revenue website but ideally I would like to find a tax advisor. I note that you are an IFA - are you able to give personal tax advice or can you recommend anyone?

Thanks,
Juliette

[Elphaba]

Originally Posted by JulesLise

Elphaba - thank you for this information. I have just been offered a job as legal counsel for Du Telecom and will be looking to move to Dubai from London sometime mid-August. I am doing some research on tax because I had heard that I may have a tax liability when I eventually return to the UK. I have printed off some information from the Inland Revenue website but ideally I would like to find a tax advisor. I note that you are an IFA - are you able to give personal tax advice or can you recommend anyone?

Thanks,
Juliette

Hi

Send me a PM and I can give you guidance,

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[Elphaba]

Originally Posted by DmE

Elphaba - i am coming out to work in Abu Dhabi in August and plan to stay for 2 years. I will be sending money back every months to meet committments. Are there limits on what i can send back - should I save offshore or put the money in a savings account back here? From what i have been told as well as notifying the Revenue & Customs via IR85 you can notify your Bank and they will not tax your interest..

Why is nothing ever straight forward!!! I appreciate your views on this

Limits depend you whether you will be fully non-residen for all the time you are away. Even if you do end up with a partial liability (possible for part tax years) you still retain your annual personal allowance (£5,435 in 2008/09)and would no liability for income remitted to the Uk under that figure.

For most bank/deposit/savings account you can complete HMRC form R85 to claim gross interest.

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[JulesLise]

Hi Elphaba - sorry I can't work out how to send you a PM - I couldn't find the PM icon that I am meant to press! Juliette

[Elphaba]

Originally Posted by JulesLise

Hi Elphaba - sorry I can't work out how to send you a PM - I couldn't find the PM icon that I am meant to press! Juliette

Hi Juliette

The site rules have just changed and you need to have made 5 posts before you can access the PM facility. Post a little more & you'll get there.



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[JulesLise]

Originally Posted by Elphaba

Hi Juliette

The site rules have just changed and you need to have made 5 posts before you can access the PM facility. Post a little more & you'll get there.



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Ah - okay (all a little new for me but I am sure that I will get the hang of it all as I use it more).

In an earlier post you mentioned something about needing to file Form R85 for tax purposes. I have been on the HM Revenue & Customs website and they have a Form P85 which is the form to complete if you have left or are about to leave the UK. Is this what you were originally referring to?

Juliette

[Elphaba]

Yes that's the one.

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

You have to leave the UK to become non-resident!


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