# UK tax question



## Traveller_UK (Sep 21, 2012)

Hi, 

I am a Malaysian national, used to work in UK and consider UK as my permenant country of residency. I have worked in Dubai for half a year(cross two UK tax year). I have saved all my Dubai salary in an offshore account with a local Middle East bank.

If I return to UK now would I be liable for UK tax for the non-residency period in Dubai, and if so, how can UK HMRC know how much I have been paid? I can move all my Dubai saving to Malaysia.

Traveller


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## Jumeirah Jim (Jan 24, 2011)

If you've only spent 6 months in Dubai then you will need to declare everything you've earned here and cough up to HMRC 

I think it's a least a full tax year out of the UK before you escape liability for income earned here but someone better qualified on here like Elphanta will be able to confirm. 

Are you sure you want to go back already?


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## BedouGirl (Sep 15, 2011)

Haha he means Elphaba but his autocorrect took over 


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## Jumeirah Jim (Jan 24, 2011)

Haha!


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## Bostin (Jan 21, 2013)

As you haven't been out of the Uk for a full tax year you'll be taxed on all your global earnings.

The uk tax rules for non-residents have been / will be changed, but the key remains being out the uk for a full tax year.

As stated above, you'd best seek professional advice.


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## IzzyBella (Mar 11, 2013)

Elphanta is a better username!

I think we should petition Elphaba to change it.


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## Traveller_UK (Sep 21, 2012)

Jumeirah Jim said:


> If you've only spent 6 months in Dubai then you will need to declare everything you've earned here and cough up to HMRC
> 
> I think it's a least a full tax year out of the UK before you escape liability for income earned here but someone better qualified on here like Elphanta will be able to confirm.
> 
> Are you sure you want to go back already?


By presenting to HMRC all my earning, am I legally required to disclose my oversea employment contract and bank statement to HMRC?


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## Jumeirah Jim (Jan 24, 2011)

You'll have to do a self assessment return and disclose all your global earnings.


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## Bostin (Jan 21, 2013)

Traveller_UK said:


> By presenting to HMRC all my earning, am I legally required to disclose my oversea employment contract and bank statement to HMRC?


If you fail to disclose your overseas earning and then HMRC find out they will come down hard. They'll potentially see it as tax evasion.

Also, they'll have a rough idea of what you should/could have earned, if you under report and it gets picked up they'll pick through your return in detail. 
I once knew a tax inspector how loved to tell stories about how they would catch people!

If you go back to the uk, and haven't been away for a whole tax year, HMRC will want their pound of flesh!


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## Elphaba (Jan 24, 2008)

IzzyBella said:


> Elphanta is a better username!
> 
> I think we should petition Elphaba to change it.


You cheeky lot! Elphaba is the real name of the Wicked Witch of the West and thus perfect, especially as I am nothing like an elephant!


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## Elphaba (Jan 24, 2008)

Traveller_UK said:


> Hi,
> 
> I am a Malaysian national, used to work in UK and consider UK as my permenant country of residency. I have worked in Dubai for half a year(cross two UK tax year). I have saved all my Dubai salary in an offshore account with a local Middle East bank.
> 
> ...



Being out of the UK for such a short period means that you will still be considered UK resident for tax purposes and thus liable for UK income tax on all of your overseas earnings.

HMRC can ask you how much you were paid and if you don't tell the truth that is tax evasion, which is illegal and can lead to further problems.

(Speaking as a professional adviser)


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## Traveller_UK (Sep 21, 2012)

Bostin said:


> If you fail to disclose your overseas earning and then HMRC find out they will come down hard. They'll potentially see it as tax evasion.
> 
> Also, they'll have a rough idea of what you should/could have earned, if you under report and it gets picked up they'll pick through your return in detail.
> I once knew a tax inspector how loved to tell stories about how they would catch people!
> ...


How the hell is HMRC is going to know what I have been doing for 6 months? I could be sitting on my ass 6 months in Malaysia doing nothing. Would HMRC require me to provide detailed oversea employment contract and my oversea bank statement? I have all sort of allowances and expenses payments all mixed together and paid to me in bundles, there is no way I can figure out what is taxable what is not!


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## Bostin (Jan 21, 2013)

A simple definition of tax evasion is: 
Tax evasion is illegal and involves the deliberate attempt to misrepresent the true financial
picture in order to avoid payment of any form of tax for which the individual or company is normally liable.

They don't know, but if you don't state it on your tax return and if HMRC decide to audit you then the trouble will start.

You can gamble - but the risks are high, if you get caught.

I'm not an expert, so I'd recommend also talking to somebody that is and perhaps knows the workings of HMRC better than I.


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## Elphaba (Jan 24, 2008)

Traveller_UK said:


> How the hell is HMRC is going to know what I have been doing for 6 months? I could be sitting on my ass 6 months in Malaysia doing nothing. Would HMRC require me to provide detailed oversea employment contract and my oversea bank statement? I have all sort of allowances and expenses payments all mixed together and paid to me in bundles, there is no way I can figure out what is taxable what is not!


Yes, they can ask you for all sorts if you are a UK national and failing to disclose is a criminal offence. There are laws. Laws which are quite clear and available for all to read and they apply to everyone.

You may not understand the rules, but some of us do...


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## Bostin (Jan 21, 2013)

Elphaba said:


> Yes, they can ask you for all sorts if you are a UK national and failing to disclose is a criminal offence. There are laws. Laws which are quite clear and available for all to read and they apply to everyone.
> 
> You may not understand the rules, but some of us do...


I teach this stuff as part of the UK Financial Regs exams, as well as lots of other financial markets related stuff


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## Jumeirah Jim (Jan 24, 2011)

Elphaba said:


> Yes, they can ask you for all sorts if you are a UK national and failing to disclose is a criminal offence. There are laws. Laws which are quite clear and available for all to read and they apply to everyone.
> 
> You may not understand the rules, but some of us do...


The OP said he/she was Malaysian, so not a British national, instead a permanent resident of the UK. From the original post it sounded clear that he/she is UK domiciled. Hard test to prove or disprove but that's the relevant factor not the passport. 

As a UK-domicile what Elph (I'm being careful with names today  ) said will apply. 6 months out of the UK won't be enough to get HMRC off your back.


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