# Working abroad, visiting UK



## ajhawk (Sep 7, 2012)

Hi there,

I am a UK resident currently but from next year, I will be starting employment in the UAE which lasts anywhere between 6-9 months on an annual contractual basis. I will be getting paid in 12 equal installments on a monthly basis in the UAE. For example, if the contract is worth 60,000 AED, I will receive 5,000 AED monthly in 12 installments.

The months where I am not working, I will be visiting the UK to visit family and friends. Hence this may last anywhere between 3-6 months every year. 

My question is, what will my tax status be in the UK? Will I need to pay any tax in the UK considering I won't be doing any work here? 

Any help will be much appreciated.

Thanks.


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## ajhawk (Sep 7, 2012)

Any help from anyone please?


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## CapnBilly (Jun 7, 2011)

It may well be that you will considered ordinarily resident if you return as planned. Suggest you read HMRC 6, particularly Section 2. If you are not sure, I always find HMRC very helpful if you call and ask them. It's also complicated by the fact that there's no double taxation agreement with UAE.


http://www.hmrc.gov.uk/cnr/hmrc6.pdf


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## ajhawk (Sep 7, 2012)

Thanks for your reply. 

Just reading up on the HMRC document, section 8.5 would seem to apply to me the most. Looking at this section, if I stay in the UK for less than 183 days in one year, I will not be liable for UK tax. Is this correct? So for example:

1) I start my employment in the UAE in September 2013 and I stay there till March 2014. 
2) Then I return to visit family in the UK for five months before returning to the UAE in August 2014.
3) Hence I would have been in the UK for less than 183 days for that year. 

Will I need to pay tax in the UK on my income based on this scenario? 

Thanks in advance


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## CapnBilly (Jun 7, 2011)

I think you're overlooking the average calculation, which says yours visits cannot exceed 91 days. Without knowing your specific dates, it looks quite tight to me, so you'll need to work it out carefully, and then as I said, give them a call, they will check it and tell you.


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## CapnBilly (Jun 7, 2011)

Unless your contract is for at least 3 years, they may consider you resident, but not ordinarily resident, in which case your UAE earnings won't be subject to UK tax, BUT read Section 5 about how you may be liable for tax if you remit funds back to the UK.

As I said before, don't be afraid to call them, they're normally quite helpful about this type of query.


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## nikkisizer (Aug 20, 2011)

ajhawk said:


> Hi there,
> 
> I am a UK resident currently but from next year, I will be starting employment in the UAE which lasts anywhere between 6-9 months on an annual contractual basis. I will be getting paid in 12 equal installments on a monthly basis in the UAE. For example, if the contract is worth 60,000 AED, I will receive 5,000 AED monthly in 12 installments.
> 
> ...


Hello ajhawk,

If you leave the UK to work abroad full-time you will become not resident and not ordinarily resident in the UK if your absence from the UK covers a complete tax year.

You must spend less than 183 days in the UK during that tax year and your visits to the UK must not average 91 days or more a tax year over a maximum of four years.


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## CapnBilly (Jun 7, 2011)

Depending upon what I was going to do with my income, I would be worried that they would consider me not ordinarily resident, but still consider me to be resident under section 2.2.


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## ajhawk (Sep 7, 2012)

Thanks guys for the replies.

Just wanted to know, when I do work abroad will I need to notify the HMRC? If so, what's the procedure? 

Additionally, how does the remittance basis work and who is eligible for this?


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