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Discussion Starter #1
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?
 

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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.
 

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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.

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Discussion Starter #4
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!
 

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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
 

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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! :eek:
 

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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.

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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?
 

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Discussion Starter #9
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.
 

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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.
 

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Could someone help me? Im leaving the UK on the 25th March so before the start of the next tax year. I wont be a resident in the UK and probably only visit 1 week a year.

I shouldn't be liable in the UK for Income Tax on my Dubai salary?

Should i even bother with this P85 form?
 

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Could someone help me? Im leaving the UK on the 25th March so before the start of the next tax year. I wont be a resident in the UK and probably only visit 1 week a year.

I shouldn't be liable in the UK for Income Tax on my Dubai salary?

Should i even bother with this P85 form?

Yes, you should bother. Form P85 informs HMRC that you wish to be treated as non-resident for tax purposes. They aren't psychic so if you don't complete and return it how woudl they know of your intentions? ;)

Provided you spend less than 90 days per tax year in the UK and your work is carried out elsewhere you will not be liable to UK income tax.

Note that your date of return will also be relevant to your tax status.

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You'll ever return to the UK??

If you ever so, you'll have been non-resident for over five full tax years so you will be free and clear.

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Non-residents are often British-born individuals who persuade the authorities they have largely left the country and are therefore able legally to avoid many British taxes.
Accountants and tax experts have long assumed that as long as someone spent no more than 91 days a year in Britain, they could claim non-resident status and tax benefits.

However it now seems if you have ties in the U.K. such as sending your children to school there, still own a house etc the tax man can come after you regardless of the 91 day rule.
http://www.telegraph.co.uk/finance/...exiles-under-pressure-after-court-ruling.html


Maiden
 

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hi there

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?
your company should help you with it or you would inform your local tax office in england that you are working abroad plus an offshore bank might be an good idea not sure if this will help you::eek:
 

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Non-residents are often British-born individuals who persuade the authorities they have largely left the country and are therefore able legally to avoid many British taxes.
Accountants and tax experts have long assumed that as long as someone spent no more than 91 days a year in Britain, they could claim non-resident status and tax benefits.

However it now seems if you have ties in the U.K. such as sending your children to school there, still own a house etc the tax man can come after you regardless of the 91 day rule.
Tax exiles under pressure after court ruling - Telegraph


Maiden
Please do not be mislead by the Gaines-Cooper case. That is more to do with domicile than residency, which are totally different issues. 99% of expats will not be affected.

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your company should help you with it or you would inform your local tax office in england that you are working abroad plus an offshore bank might be an good idea not sure if this will help you::eek:
Employers generally don't know about tax issues and banks are not a good place for independent advise. Better to speak to a finance professinal like me who deals with these issues daily.

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