# UK tax on bonus if you are a non resident



## Barnb0809 (May 22, 2013)

So my husband is officially non resident in UK. We had thought we’d seen the last of the tax man (sent off all of the paperwork) until his HR department mentioned that this year’s bonus (due at the end of September) must be paid and taxed in the UK as it is a bonus for work completed in the UK. 

For obvious reasons, I would rather he didn’t have to pay UK tax on this bonus. As he is a non resident, does he have the option to claim back the tax, or at least the national insurance on this bonus payment when he does his self assessment next April? Or has HMRC managed to catch us one last time? 

I probably know the answer but there might be a tax whizz out there that knows a loop hole or two.  The information I have read online is conflicting and dated


----------



## vantage (May 10, 2012)

my guess.

this is UK pay, earned in the UK.
Regardless of residence status, UK earned income must be declared in the UK, usually via self-assessment.
This does not appear to be income earned overseas being paid in the UK.

I am also non-resident to the UK, but i do have to pay tax on any UK earnings (property rent, other business interests etc)

The one advantage he will have is that the first 9K or so of his UK earnings will be tax free, so if you left before April, and he is being paid this bonus now, the first 9K (or so dependent on tax code) will be tax free anyway. The next chunk, up to 38K or so is at 20% etc etc.

So, he is probably not devoid of any tax liability, but it is certainly reduced. Nothing quite as galling as getting a bonus taxed at 40%!




caveat : i am not a tax expert..!


----------



## Barnb0809 (May 22, 2013)

Unfortunately we only left in August therefore it's 40% for us. As he is still working for the same company I had hoped that would just pay in directly into our UAE bank account through the Dubai office. Wishful thinking!

Better start returning those designer handbags....


----------



## M3red (May 29, 2012)

Barnb0809 said:


> Unfortunately we only left in August therefore it's 40% for us. As he is still working for the same company I had hoped that would just pay in directly into our UAE bank account through the Dubai office. Wishful thinking!
> 
> Better start returning those designer handbags....


You need to stop asking on here and researching yourself and get some proper professional tax advice.

I left the uk in September 2012 and had a bonus paid in march by the uk entity. The portion of bonus from jan to sept was uk paid and part of the tax year to April 2014 (ouch). The rest was earned in the period oct to dec with the onshore company and therefore tax free. Can't wait for next years bonus all paid here in aed.

I've just sorted out pwc to sort out my tax as it can be messy and complex especially if you have property or plan to buy property in the uk...if you earn aed and go to the uk and have to pay tax on previous earnings it could leave you in severe financial distress!


----------

