Query on UK income tax

[crazymazy1980]

Originally Posted by Maz25

The HMRC website will provide you with all the info you need: See Link above

You can still transfer money into your account back home, without acquiring any tax liability if you fill in the relevant form. Even then, taxes will ony be paid on the interest rather than the balance and you can still claim back any taxes that you have paid at the end of the tax year (see above link for the form). Offshore accounts are great for savings, so unless you are planning to save a large amount of money, then there is no need to set up a new offshore account. Once you have set up an account in the UAE, then your bank can do the transfer for you on a monthly basis. I would advise that you check with your bank to see how much they will charge you to receive the transfer. When I used to bank with HSBC, I know that they charged £13.

Thanks Maz25,

That makes things fairly straightforward and means I can pretty much keep things here as they are. May just tranfer money in quarterly to save on charges if it's a flat fee - got to look after the pennies, it's wasted beer money

[flossie]

You could also ask your pay office if they will deposit part of your pay into your offshore/overseas bank account. This is how we send money to Australia each month.

P.S. Aussie dollar down to a 6 month low!! Woohoo

[sgilli3]

Originally Posted by flossie

You could also ask your pay office if they will deposit part of your pay into your offshore/overseas bank account. This is how we send money to Australia each month.

P.S. Aussie dollar down to a 6 month low!! Woohoo

hahaha
Years ago I was always watching the value of our $, hoping for it to go up, now here I am, cheering when it drops !!!

[crazymazy1980]

Originally Posted by flossie

You could also ask your pay office if they will deposit part of your pay into your offshore/overseas bank account. This is how we send money to Australia each month.

P.S. Aussie dollar down to a 6 month low!! Woohoo

That sounds like a plan and it shouldn't be too hard for them - they're a bank themselves

I've been loving the $ rate too, 2 to the £!!

[greatexpectations]

thanks for the responses and advice all...

[Ruggedblond]

Originally Posted by Maz25

Quite right. As soon as your money hits a UK bank account, you will be liable for taxes on all of it. You can, on the other hand, keep it under the matress and pay no taxes!

I'm moving to Dubai in December and I understand due to UK tax rules I'll still be liable to pay UK tax on my earnings from December - April (remainder of tax year) even though I'll be in Dubai. I'm self employed so I imagine I'll need to fill in my tax return before I come to Dubai in order to fill in the form to advise I'm emigrating?

I'd like to leave my UK bank account with some funds to cover the last direct debits etc. Also my bank don't charge for overseas purchases which has always been a godsend when I've been abroad in the past. When it comes to the new tax year in April and lets say I have £1,000 in my account, will the UK government deem I'm liable to tax on this money, how will they try to collect it and even worse will they judge I haven't emigrated?!

[Elphaba]

Originally Posted by Ruggedblond

I'm moving to Dubai in December and I understand due to UK tax rules I'll still be liable to pay UK tax on my earnings from December - April (remainder of tax year) even though I'll be in Dubai. I'm self employed so I imagine I'll need to fill in my tax return before I come to Dubai in order to fill in the form to advise I'm emigrating?

I'd like to leave my UK bank account with some funds to cover the last direct debits etc. Also my bank don't charge for overseas purchases which has always been a godsend when I've been abroad in the past. When it comes to the new tax year in April and lets say I have £1,000 in my account, will the UK government deem I'm liable to tax on this money, how will they try to collect it and even worse will they judge I haven't emigrated?!

Whether you are liable to UK income tax from December 2008 to April 2009 depends on how long you will remain UK non-resident for tax purposes. If you are overseas for just couple of years you are liable, but if you are not temporarily non-resident (say 4+ years) you will have no tax to pay.

Even if you were liable to tax on your savings account, the interest of £1,000 would be negligible. In fact if you are non-resident you can claim gross interest (HMRC form R85).

Just ask if you have any other questions. I do this for a living.

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[Ruggedblond]

Originally Posted by Elphaba

Whether you are liable to UK income tax from December 2008 to April 2009 depends on how long you will remain UK non-resident for tax purposes. If you are overseas for just couple of years you are liable, but if you are not temporarily non-resident (say 4+ years) you will have no tax to pay.

Even if you were liable to tax on your savings account, the interest of £1,000 would be negligible. In fact if you are non-resident you can claim gross interest (HMRC form R85).

Just ask if you have any other questions. I do this for a living.

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Can anyone become non domicile? If so would I need to do it before I come to Dubai, whilst I'm in Dubai or IF and when I return?

[Elphaba]

Originally Posted by Ruggedblond

Can anyone become non domicile? If so would I need to do it before I come to Dubai, whilst I'm in Dubai or IF and when I return?

And why on earth would be you need to be non UK domiciled? Residency and domicile are completely different issues.

The concept of domicile is very strong in Britsh law and not something that can easily be changed. To even be considered for a change of domicile you would need to have lived outside the UK for well over 15 years, have no property, bank accounts or savings there and have another nationality. You have to break all links with the country. Even then there are no guarantees.

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[Ruggedblond]

Originally Posted by Elphaba

And why on earth would be you need to be non UK domiciled? Residency and domicile are completely different issues.

The concept of domicile is very strong in Britsh law and not something that can easily be changed. To even be considered for a change of domicile you would need to have lived outside the UK for well over 15 years, have no property, bank accounts or savings there and have another nationality. You have to break all links with the country. Even then there are no guarantees.

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Only a thought! Thanks for pissing on my fire haha!!!!