Taxation

Go Back   Expat Forum For People Moving Overseas And Living Abroad > Middle East & Africa > Dubai Expat Forum for Expats Living in Dubai

Dubai Expat Forum for Expats Living in Dubai Have you made Dubai your new home? Are you thinking about moving to Dubai? If you want meet like minded Expats living in Dubai then you have come to the right place. Join the Dubai Expat Forum and discuss food, meet friends, talk property in Dubai, finances, jobs and much much more.

Taxation


Closed Thread
 
Subscribe to this Thread Thread Tools
  #1 (permalink)  
Old 1st February 2010, 10:18 AM
Member
 
Join Date: Jan 2010
Location: uk
Posts: 56
Rep Power: 1584
jamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond repute

Users Flag! Originally from uk. Users Flag! Expat in uae.
Default Taxation

Yes another question - sorry! Can anyone advise as to what we need to do to ensure we are not UK taxed on our Dubai salaries? We will also be keeping our property in UK will this affect our taxation?

Quick reply to this message
  #2 (permalink)  
Old 1st February 2010, 11:43 AM
Gavtek's Avatar
Member
 
Join Date: Aug 2009
Location: Scotland
Posts: 3,723
Rep Power: 685349
Gavtek has a reputation beyond reputeGavtek has a reputation beyond reputeGavtek has a reputation beyond reputeGavtek has a reputation beyond reputeGavtek has a reputation beyond reputeGavtek has a reputation beyond reputeGavtek has a reputation beyond reputeGavtek has a reputation beyond reputeGavtek has a reputation beyond reputeGavtek has a reputation beyond reputeGavtek has a reputation beyond repute
1487 likes received
7 likes given

Users Flag! Originally from scotland. Users Flag! Expat in uae.
Default

To avoid paying UK income tax, you need to be out of the UK for 183 days in the first tax year and an average of 274 each year for 4 tax years.

If you're renting out your UK property then you will be liable to Schedule A Income Tax.

Quick reply to this message
  #3 (permalink)  
Old 1st February 2010, 03:48 PM
Elphaba's Avatar
Member
 
Join Date: Jan 2008
Location: Dubai, UAE
Posts: 6,657
Rep Power: 414380
Elphaba has a reputation beyond reputeElphaba has a reputation beyond reputeElphaba has a reputation beyond reputeElphaba has a reputation beyond reputeElphaba has a reputation beyond reputeElphaba has a reputation beyond reputeElphaba has a reputation beyond reputeElphaba has a reputation beyond reputeElphaba has a reputation beyond reputeElphaba has a reputation beyond reputeElphaba has a reputation beyond repute
599 likes received
168 likes given

Users Flag! Originally from uk. Users Flag! Expat in uae.
Default

Quote:
Originally Posted by jamin View Post
Yes another question - sorry! Can anyone advise as to what we need to do to ensure we are not UK taxed on our Dubai salaries? We will also be keeping our property in UK will this affect our taxation?
I haven't much time to answer you in full right now, but in brief, you start by completing and return HMRC form P86 to declare yourself non-resident.

Unless you remain outside of the UK for a full five tax years, you will be liable to UK income tax for all earning in the current tax year, including those from overseas, as you will now be in the Uk for more than 183 days.

Once you are non-resident you are only liable to tax arising in the UK if it exceeds your personal allowance. This is £6,475 per person in the current year. You should register for the Non Resident landlord Scheme to receive rental income gross.

If you contact me via the links below, I can email you some fuller information.

-

__________________
Independent Financial Advice for Expats http://financialuae.com - Twitter @FinancialUAE

Last edited by Elphaba; 1st February 2010 at 03:50 PM.
Quick reply to this message
Sponsored Links
Advertisement
 
  #4 (permalink)  
Old 1st February 2010, 04:30 PM
Member
 
Join Date: Jan 2010
Location: uk
Posts: 56
Rep Power: 1584
jamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond repute

Users Flag! Originally from uk. Users Flag! Expat in uae.
Default

Thanks to both of you for your help here. It's a lot to get you're head around and I appreciate your help in getting started.
I'll catch you on the links below for more. Cheers!

Quick reply to this message
  #5 (permalink)  
Old 12th February 2010, 02:03 PM
New Member
 
Join Date: Jan 2010
Location: england
Posts: 9
Rep Power: 0
AndyM is on a distinguished road

Users Flag! Originally from england. Users Flag! Expat in uae.
Default

Hi

The rules have changed and no longer will the fact your out of the UK for a number of days count as being none resident for tax, they are now taking all links to the UK into account when deciding if you are not resident, including property, family remaining etc. You need to complete form P85 which can be got from the HMRC website and you need to read document HMRC 6 also from the HMRC web site. My advice is also get some tax advice before you complete the form. Also ensure you start proceedings well in advance as most of the UK offices will not read the information for about 1 month. If you have a seperate contract for the work in Dubai ensure you include a copy with the form and a covering letter.

There are also documents on the non-resident landlord subject.

A

Quick reply to this message
  #6 (permalink)  
Old 12th February 2010, 03:15 PM
britishindian's Avatar
New Member
 
Join Date: Jan 2010
Location: Dubai
Posts: 24
Rep Power: 0
britishindian is on a distinguished road

Users Flag! Originally from uk. Users Flag! Expat in uae.
Default

Quote:
Originally Posted by jamin View Post
Yes another question - sorry! Can anyone advise as to what we need to do to ensure we are not UK taxed on our Dubai salaries? We will also be keeping our property in UK will this affect our taxation?
I can tell you it is a pain to do as I have done some part of it and am awaiting to the the rest. The form you will need to fill and send is indeed the P85 which can be done while within the UK or form outside, with it you will need to include the P45 if you were working previously.

If you are likely to be a non-resident landlord you will need to complete the form outlining all details of the property in order to be exempt from Tax, you will also reference these details on the p85 you will be filling detailing all income you will receive while being non-resident.
Hope this helps!

Quick reply to this message
  #7 (permalink)  
Old 14th February 2010, 11:08 AM
New Member
 
Join Date: Jan 2010
Location: england
Posts: 9
Rep Power: 0
AndyM is on a distinguished road

Users Flag! Originally from england. Users Flag! Expat in uae.
Default

Hi

If working under a formal contract of employment or as an employee of a company on secondment then section 8.5 in HMRC applies ortherwise you need to satisfy section 8.2. You will be classed as non-resident from the day after you leave to start work and not from the point you left i.e. if you go for a week's holiday before you begin work.

A

Quick reply to this message
  #8 (permalink)  
Old 25th February 2010, 10:54 PM
New Member
 
Join Date: Feb 2010
Location: London
Posts: 17
Rep Power: 0
MrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond repute

Users Flag! Originally from uk. Users Flag! Expat in uae.
Default

Hi I have read a tonne of info on becoming non resident from the UK and as far as I understand it, you do not have to pay tax from the day after you leave the country to work. But I am hearing rumours from colleagues that you do have to pay UK tax for the first year. I guess I should believe HMRC, but can anyone clarify?

Quick reply to this message
  #9 (permalink)  
Old 26th February 2010, 09:30 AM
Member
 
Join Date: Jan 2010
Location: uk
Posts: 56
Rep Power: 1584
jamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond reputejamin has a reputation beyond repute

Users Flag! Originally from uk. Users Flag! Expat in uae.
Default

I was sent this from Elphaba who is all knowing in these matters!!!

If someone leaves part way through a tax year they then remain liable for Uk income tax for the remainder of that year. This is particularly the case for anyone who intends to remain overseas for just a few years. Any stay in excess of 5 years living overseas you become more than temporarily non-resident for tax purposes and any partial years become exempt from Uk income tax. At this time there is also no liability to capital gains tax.
When leaving the UK, HMRC form P85 should be completed to be treated as non-resident for tax purposes.

Quick reply to this message
  #10 (permalink)  
Old 26th February 2010, 11:48 AM
New Member
 
Join Date: Feb 2010
Location: London
Posts: 17
Rep Power: 0
MrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond reputeMrPhil has a reputation beyond repute

Users Flag! Originally from uk. Users Flag! Expat in uae.
Default

Quote:
Originally Posted by jamin View Post
I was sent this from Elphaba who is all knowing in these matters!!!

If someone leaves part way through a tax year they then remain liable for Uk income tax for the remainder of that year. This is particularly the case for anyone who intends to remain overseas for just a few years. Any stay in excess of 5 years living overseas you become more than temporarily non-resident for tax purposes and any partial years become exempt from Uk income tax. At this time there is also no liability to capital gains tax.
When leaving the UK, HMRC form P85 should be completed to be treated as non-resident for tax purposes.
Thanks Jamin. Part way through the year - do you know if that is resulting from the 183 days in UK clause? I am guessing so as if leaving at the end of April (which is likely) that would be a bit unfair having to pay almost a full year.

Quick reply to this message
Closed Thread


Quick Reply
Message:
Options

Register Now

In order to be able to post messages on the Expat Forum For People Moving Overseas And Living Abroad forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.
Password:
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:
Location
Where you live
Expat From Country
Please select the country you originate from. This will appear as a flag when you make posts on the site.
Expat To Country
Please select the country you have either moved to or want to relocate to. This will be presented on the site when you make posts.

Log-in


Thread Tools

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
taxation tonichiwa Greece Expat Forum for Expats Living in Greece 0 10th January 2011 04:58 PM
US Federal Taxation and State Taxation of Pension from former UK employer saturn5man USA Expat Forum for Expats Living in the USA 10 11th February 2010 08:32 AM
Taxation ? rackspace Australia Expat Forum for Expats Living in Australia 6 16th December 2009 07:55 PM
Taxation Gladders Cyprus Expat Forum for Expats Living in Cyprus 0 8th July 2009 10:25 AM
Taxation clantry South Africa Expat Forum for Expats Living in South Africa 16 29th December 2007 07:06 AM

FORUM PARTNERS

ExpatForum.com is owned and operated by VerticalScope Inc.

Retiring Overseas Guides | Moving Overseas Guides | Cost of Living | Health Care Guides


All times are GMT. The time now is 12:04 AM.


Powered by vBulletin®
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.