# Simple UAE To UK Salary Transfer...



## mikegt (Aug 12, 2017)

Hey all,

I am really confused about if I will need to pay Tax on my salary when I send it back to the UK.

I have heard that you need to spend a full tax year outside of the UK in order to not be classified as a resident..

I have been out of the UK since Aug 2017, which is some way into the 2017/2018 tax year running april/april..

I have not been back to the UK and working in Dubai..

I plan on sending some money back now and avoid tax, or will I need to wait until April 2019 I have heard that any money made in the UAE is not taxable and I can send it home without any problems.. I did search the forum but couldnt find much info..

Please advise me if you can, thanks so much


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## twowheelsgood (Feb 21, 2013)

Its partially dependent upon how long you have been out but also HMRC look at what they call 'ties' to the UK. So if your family is in the UK, you keep your home in the UK, and you have a business in the UK, then you will be considered to have more ties than if you sold everything and moved away.

That doesnt mean you are guaranteed to pay taxes, but in general if you stay out of the UK completely, you should be fine, but you need professional tax advice.

Have you filled out a Tax Return in the Uk at all ? You probably should as you have a split year in 2017 so might actually get some tax back, and fill one out for 2018 so the HMRC know you are outside of the UK.

But in general as long as you stay away, most people don't get asked to pay tax.


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## mikegt (Aug 12, 2017)

Hey guys, 

Thanks a lot for your replies so far. Very kind. All I have in the UK is my family. No house, No job, No dog no cat  lol

Just a bank account. I haven’t filled a tax return form no, or a P85 but I believe that isn’t a crucial part of this. I paid my last tax sum when I left my job in April 2017, I was at the company almost 8 years and never had a tax refund so I guess my company were doing everything correctly. 

What I am confused about is my resident status. I have not stepped foot in the UK since Aug 2017... In order to be a non-resident you have to be out of the country for a full tax year, but as I said I left my old company towards the end of April and left the UK Aug 2017. 

So I am just confused as to what my status currently is. I have taken a look here but I still do not understand because it is not clear cut for me, or am I being stupid?  Also I would have thought that any funds earned while in another country would be subject to tax laws of the country it was made in, in my case Dubai which is tax free.... 

https://www.gov.uk/tax-foreign-income/residence


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## twowheelsgood (Feb 21, 2013)

You aren't being stupid as the regulations are difficult, which is why I suggested getting a tax advisor.

But from your description, gut feel says you will be fine as long as you stay out of the country.

Tax laws are agreed between countries (double taxation rules as they are known) so it doesnt result in you paying taxes in two places at once but every agreement is different. then you have the complexity of countries where people are taxed at home on global income like the USA.


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## mikegt (Aug 12, 2017)

twowheelsgood said:


> You aren't being stupid as the regulations are difficult, which is why I suggested getting a tax advisor.
> 
> But from your description, gut feel says you will be fine as long as you stay out of the country.
> 
> Tax laws are agreed between countries (double taxation rules as they are known) so it doesnt result in you paying taxes in two places at once but every agreement is different. then you have the complexity of countries where people are taxed at home on global income like the USA.


Thanks for this, I am heading to the UK to see family for a few weeks and then I am back in the UAE. Thats not going to effect anything will it? I live in work in the UAE now and have a resident visa so none of this makes sense..


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## twowheelsgood (Feb 21, 2013)

It actually makes perfect sense but you're looking at things in one dimension only. You seem to think that having a UAE residency is the only thing that matters and everything else becomes irrelevant. So as an example, when you become 'ordinarily non-resident' which is what you want to be come non-tax paying from a UK perspective you lose certain things as a consequence such as;

You cannot be present in the Uk for more than 90 days in any tax year 
You cannot buy an ISA
You cannot use the NHS for anything except emergency services
You cannot use an NHS Dentist
You cannot buy a house without paying extra Stamp Duty as you are treated as a foreign buyer
You cannot open a new pension, but you can put into an existing one for five years

The list is long, which is why you need some professional advice.

Oh and one good reason why you cannot sever your ties from the UK, is you presumably expect to travel on a UK passport. If you want a UK passport but not be responsible for taxes etc in the UK, then you become a non-dom like many rich people andpay about £30k to £50k per year for the privilege of a UK passport.

If you truly lived in the UAE and expected to sever ties with the UK, then you shouldn't expect your family to live in the UK, nor to use any government, tax funded service. They are living off foreign money, which ahs not ben taxed when being sent to the UK, which is why there are limits. You are unlikely to hit them but its not carte blanche as you see to think it is - if you were a millionaire in Monte Cralo having your family living in the UK living off your untaxed money, while using all the UK government services you'd be on the front page of the Daily mail as a sponger. 

A couple of weeks in the UK won't make any difference but if you start getting too much time in the UK, or are doing any work for your employer there beyond another limit which I think is 21 days, then you become subject to UK taxation.

That nice EID doesnt get you as much freedom from paying for things as you think it does.


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## mikegt (Aug 12, 2017)

twowheelsgood said:


> It actually makes perfect sense but you're looking at things in one dimension only. You seem to think that having a UAE residency is the only thing that matters and everything else becomes irrelevant. So as an example, when you become 'ordinarily non-resident' which is what you want to be come non-tax paying from a UK perspective you lose certain things as a consequence such as;
> 
> You cannot be present in the Uk for more than 90 days in any tax year
> You cannot buy an ISA
> ...


Thanks for your reply, I think you may have misunderstood here. My parents live in the UK and are living off their OWN money. 

Fully expect not to be using tax paid provided services as you mentioned above, to be honest I NEVER claimed any benefits from the UK system even though I am a brit and probably never will. Unless I have a serious accident there which is probably unlikely. 

I am just trying to confirm what my residence status is being out of the country since Aug 2017 and not visited since, since I left into the tax year, but at that time I wasn't even working anyway I left my last job at the end of April 2017. 

I can tell by your post you are slightly agitated.. No harm intended. I dont mean to cause any wrong doing, hence my posting. But from what I have been reading since I left half way through the tax year I will be given split treatment, I am still reading and making sense of it.


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## twowheelsgood (Feb 21, 2013)

Thanks Mike - I had assumed when you talked about 'your family' you were referring to dependents and spouse - not parents.

I'm not agitated in the slightest, just pointing out you are making broad, incorrect assumptions because you place too much importance on the UAE residency, and you think that removes all UK obligations and conditionality of being a UK Passport holder. It doesn't. You kept coming back to 'but I have a UAE residency' as if somehow that trumps everything. It doesn't.

PS You claimed plenty of benefits - you undoubtedly went to the doctors, dentist, used schools etc in your youth and those are what people are expected to contribute towards in later life, to fund the next generation. If you stay out, as is your right, you don't then contribute but for certain, you've already taken out of the system. Your UAE residency does not as an example, entitle you to go to the UK and work for six months and claim "but I have a UAE residency so I don't have to pay UK taxes".

You'll almost certainly get split treatment but that depends upon what you earned in the period of the tax year before you left. Which is why you need tax advice.


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## twowheelsgood (Feb 21, 2013)

Thanks Mike - I had assumed when you talked about 'your family' you were referring to dependents and spouse - not parents.

I'm not agitated in the slightest, just pointing out you are making broad, incorrect assumptions because you place too much importance on the UAE residency, and you think that removes all UK obligations and conditionality of being a UK Passport holder. It doesn't. You kept coming back to 'but I have a UAE residency' as if somehow that trumps everything. It doesn't.

PS You claimed plenty of benefits - you undoubtedly went to the doctors, dentist, used schools etc in your youth and those are what people are expected to contribute towards in later life, to fund the next generation. If you stay out, as is your right, you don't then contribute but for certain, you've already taken out of the system. Your UAE residency does not as an example, entitle you to go to the UK and work for six months and claim "but I have a UAE residency so I don't have to pay UK taxes".

You'll almost certainly get split treatment but that depends upon what you earned in the period of the tax year before you left. Which is why you need tax advice.


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## mikegt (Aug 12, 2017)

Nope, parents. it clearly states on the HMRC website that if I am out for a full tax year then I am no longer a UK resident. Its clear cut. 

I'm not going to go into what I have and haven't used in the UK but let me assure you apart from a poor state school it has been extremely minimal. I have never had any kind of treatment as I haven't needed it. 

I didn't earn anything after in the tax period that I left, as I received my final salary around the 21st April which was taxed properly and always has been so I dont owe any tax and unfortunately haven't got a re bait as my tax code has always been correct. 

It would be obvious that if I was to go to the UK and work I would pay UK taxes, that's a given as I would intend to stay in the UK. 

That exactly does split treatment mean anyway..?


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## Stevesolar (Dec 21, 2012)

mikegt said:


> Nope, parents. it clearly states on the HMRC website that if I am out for a full tax year then I am no longer a UK resident. Its clear cut.
> 
> I'm not going to go into what I have and haven't used in the UK but let me assure you apart from a poor state school it has been extremely minimal. I have never had any kind of treatment as I haven't needed it.
> 
> ...


Hi,
As already stated by two wheels - it is much more complex than simply staying away for a year!
Since 2013 - HMRC use the Statutory Residency Test to determine your residency status.
Here is the link to the document that explains all
https://assets.publishing.service.g...8/160803_RDR3_August2016_v2_0final_078500.pdf

Split treatment - this is for when you are working in UK for part of a tax year and out of the UK for the remainder of that year.

Don’t assume anything! - it could cost you dearly.

Cheers
Steve


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## mikegt (Aug 12, 2017)

Hi, yes I have seen that attachment and its so full of information I wouldnt even know where to staty let alone understand the jargon in it.


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## Stevesolar (Dec 21, 2012)

mikegt said:


> Hi, yes I have seen that attachment and its so full of information I wouldnt even know where to staty let alone understand the jargon in it.


That’s why you either engage a tax expert, learn to read jargon or risk paying a big tax bill!


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## twowheelsgood (Feb 21, 2013)

mikegt said:


> it clearly states on the HMRC website that if I am out for a full tax year then I am no longer a UK resident. Its clear cut.


No, thats your misunderstanding.

You are mixing up 'non-resident' with 'non-resident for tax purposes'.

You can be resident out side of the UK and still be liable for UK taxes.

How would you say that you would be taxed if your UAE employer asked you to go to the Uk to do a months work, if its obvious ?

Its not as simple as you seem to believe it is, which is why we keep telling you that and to get advice.


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## mikegt (Aug 12, 2017)

Think that would be the best option as no one seems to know.

cheers


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