Hi.
I wish to avoid UK taxation.
With reference to the following can anyone give me advice concerning my liability for UK tax please:

I started a 2 year contract in Oman this month (March 2008), my leave cycle is 28/28 (flexible on my part as I only need to visit occasionly).
I have done some research and I found out that I should fill out a P85 tax form.
I understand that if I spend 91 days or less in the UK in any one tax year I will not need to pay tax, based on an average over four years. (I don't understand that part,, What if I wanted to spend less than four years overseas?).
There was also a mention of not being able to bring money into the UK as that would be liable to be taxed... how much I don't know.

I would be really pleased if there is someone out there to help me fully understand this.

Thanks

Leslie

Ah -one for me. I am an independent financial adviser, based in Dubai (authorised in UK & UAE) and give a lot of advice on this kind of issue.


A P85 form is the one that advises HMRC that you wish to be treated as non-resident for tax purposes. You have moved quite neatly at the very end of the 2008/08 tax year so provide dyou spend no more than 90 days (now including days of entry & exit) in the UK in the tax year 2008/09 you will not have any tax to pay on income you are paid in Oman. Ditto for subsequent years. The issue regarding actual number of years becomes relevant depending on when during a tax year you return to the UK.

You should not have an issue remitting monies into the UK, particularly if the amount is under the personal allowance threshold which will be GBP 5,435 in 2008/09.

For savings however, I woud suggest that you consider offshore accounts.

Hope this helps - yell if you have more questions.

Hi Leslie and welcome to the forum.

You might not get too much response as you have posted in the wrong place. Try posting on the UK country forum, but I am sure by the time you read this, a moderator would have moved your post.

Regards

Michelle

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A wonderful place to live

Not sure it should be in the UK forum as the poster won't be in the UK...

Ops................should have said the general forum

Michelle

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www.mar-del-plata-argentina.net

A wonderful place to live

Or the Dubai forum?

Thanks Elphaba for this quick response,
Your reply answers all of my questions, It's also good to know that I can take at least some of my earnings with me on my trips home.

If my understanding is correct I could transfer monies up to GBP 5435 from my Oman bank a/c to my UK bank a/c (this would help with my expenses in the UK including payments off my home mortgage) and declare this amount to HMRC.

I also have an amount of savings on which I receive interest (Less than GBP 500) Am I correct in saying that I have no need to declare this as I am not paying 40% UK tax..

Once again many thanks.

Leslie

Well that only makes sense if it is renamed as I have requested....

(NB - Oman is not part of Dubai!)

Once you are formally non-resident you can return more monies to the UK, provided you remain non-resident for a number of years.

If you receive interest on UK saving you can register with the relevant bank to receive interest gross, as basic rate tax is automatically deducted. You'll need an R85 for for each account and these can be downloaded from the HMRC website.

Thank you Elphaba,
With your help I am beginning to grasp this tax situatiom.

Leslie