# Tax on return to UK



## alanmcg (Aug 12, 2012)

I have recently resigned from my job overseas and will be returning to the UK around 4th September. Knowing I was going to be leaving I contacted the expat tax office in Manchester regarding my tax obligations for this tax year to date (April 2012 until September 2012). They have informed me that I will owe them tax on my overseas earnings from April 2012 to September 2012 even though I left the UK in January 2011 and have completed a full tax year (April 2011 to April 2012) and have NT status. Could someone please let me know if the tax office is correct?


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## robnw (Jul 18, 2012)

Correct, on the 6 months rule, but there are things to do. This is not simple, the law is changing, and HMRC won't guide you into the right action: take advice. A chartered tax adviser would (a) look at the contract you had on going out Jan 2011, and decide whether it was "employment" in which case ESC A11 may apply so that you are treated as non-resident up to date of return. Second, he or she will consider suggesting you take a holiday abroad until the six months are up (Oct 2012). Third, you may already have paid tax in the country you went to (not if your contractor was based in Afghanistan) and this would be available as a DTT credit against UK tax, and that may end up a better result for you. Fourth, and if it comes down to reducing the UK liability, there are some extra expenses you can claim on your UK return for travelling. If the earnings you made during those five months were more than 10k, then paying £100-£200 for advice to know your further your options is worth it.


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## nikkisizer (Aug 20, 2011)

alanmcg said:


> I have recently resigned from my job overseas and will be returning to the UK around 4th September. Knowing I was going to be leaving I contacted the expat tax office in Manchester regarding my tax obligations for this tax year to date (April 2012 until September 2012). They have informed me that I will owe them tax on my overseas earnings from April 2012 to September 2012 even though I left the UK in January 2011 and have completed a full tax year (April 2011 to April 2012) and have NT status. Could someone please let me know if the tax office is correct?


Hello alanmcg,

What the tax office have told you is incorrect as long as the following rules apply to your circumstances:

- You are returning to the UK to take up permanent residence or to stay for at least two years, or

- Your fulltime service overseas was under a local contract of employment for at least a complete UK tax year and any interim visits to the UK in the period do not amount to 183 days or more in any tax year or an average of 91 days or more in a tax year

If the above applies to your circumstances then you will be eligible for split year treatment meaning you will only be taxed on earnings after your return to the UK


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