# UK tax on annual bonus



## robnreb (Mar 1, 2009)

Hi,

I moved to Dubai this month from the UK and need some tax advice:

In the next week I will be paid my 2008 bonus however the money will be paid in dirhams to my UAE bank account, via the Dubai branch of my company, and free of tax

Strictly speaking I believe this should be eligible for UK income tax, what with being a reward for my work done in the UK, however with me now being based permanently in Dubai is it still necessary to send x% home to the revenue office?

Additionally, I need to confirm that monies earned between now and the end of the UK tax year are not eligible for UK tax, despite the fact I spent more than the prescribed 90 days (approximate) in Britain in one fiscal year?

Thanks,

R


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## HelenG (Oct 21, 2008)

I think it probably is taxable income since you earned it in the UK. Its worth having a look round the revenue and customs website and see what they have to say HM Revenue & Customs: Home Page. Unless anyone else has a definitive answer I can ask my Dad for you, he's worked for the revenue for about 30 years.


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## Elphaba (Jan 24, 2008)

robnreb said:


> Hi,
> 
> I moved to Dubai this month from the UK and need some tax advice:
> 
> ...


Technically speaking if the bonus relates to work carried out in the UK, there should be a tax charge, but it will depend how your employer has set matters up. Are you now on a local contract or still a UK one?

The potential liability to UK tax in the 2008/09 year will depend on how long you remain out of the UK in total. If you moved out part way through the 2008/08 tax year you could be liable to UK tax on all of your worldwide income in that year . If however you remain in the UAE for 5 years, you are considered as non-temporarily non-resident for tax purposes and would not have to pay tax for any partial years. Exact information would be required to clarify.

I hope that helps. You may like to note that I advise on these matters on a professional basis.

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## robnreb (Mar 1, 2009)

Elphaba,

Thanks for your note; why are answers to tax questions nearly always what I don't want to here?

To put some more flesh on the bones, I am here on a local package and am likely to stay here for about 18 months.

The thought of having to pay the tax back on earnings made since moving is particularly scary as the cost of living out here doesn't show any sympathy.

I would be keen to discuss in more detail if you feel you can help me navigate these murky waters?

Thanks


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## Elphaba (Jan 24, 2008)

Once you have made 5 posts you will have access to the Personal Message function and I can then contact you. I can certainly help you though.


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## robnreb (Mar 1, 2009)

This is number 3


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## robnreb (Mar 1, 2009)

This is number 4


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## robnreb (Mar 1, 2009)

and last but not least...


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## Elphaba (Jan 24, 2008)

Hmm, not working. Do you recall removing that option when you set up your account? Check your 'User CP' to make sure that PMs are allowed.


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## Elphaba (Jan 24, 2008)

Noted so you should remove your email address.

You'll get an email shortly.


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## robnreb (Mar 1, 2009)

Hi Elphaba,

I'm struggling to get through to your phone number; you should find an email from me in your mailbox though.

Thanks


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## King Silk (Feb 25, 2009)

Elphaba said:


> Technically speaking if the bonus relates to work carried out in the UK, there should be a tax charge, but it will depend how your employer has set matters up. Are you now on a local contract or still a UK one?
> 
> The potential liability to UK tax in the 2008/09 year will depend on how long you remain out of the UK in total. If you moved out part way through the 2008/08 tax year you could be liable to UK tax on all of your worldwide income in that year . If however you remain in the UAE for 5 years, you are considered as non-temporarily non-resident for tax purposes and would not have to pay tax for any partial years. Exact information would be required to clarify.
> 
> ...


Tell me Elphaba, have you ever got a Tax rebate from the UK Tax people? Only I have been trying for three years to get monies paid to them by my Bank without success. They told me last year that several hundred was going to be paid into my UK Bank Account.....But nothing appeared!
They asked me once how much had been paid to them by the Bank. I didn't remember so I told them to look at my Tax Account. They replied that they didn't have a record of my tax money paid to them ! HOW DO THEY KNOW IF YOU HAVE PAID THEM THEN??? CRAZY......


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## Elphaba (Jan 24, 2008)

robnreb said:


> Hi Elphaba,
> 
> I'm struggling to get through to your phone number; you should find an email from me in your mailbox though.
> 
> Thanks


I have a Blackberry Bold which is incredibly temperamental and doesn't accept calls sometimes. It drives me nuts.

I can't see an email so can you resend and I'll call you this afternoon.

Thanks

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## Elphaba (Jan 24, 2008)

King Silk said:


> Tell me Elphaba, have you ever got a Tax rebate from the UK Tax people? Only I have been trying for three years to get monies paid to them by my Bank without success. They told me last year that several hundred was going to be paid into my UK Bank Account.....But nothing appeared!
> They asked me once how much had been paid to them by the Bank. I didn't remember so I told them to look at my Tax Account. They replied that they didn't have a record of my tax money paid to them ! HOW DO THEY KNOW IF YOU HAVE PAID THEM THEN??? CRAZY......


I know of rebates being paid and have seen the evidence.
If you have paid UK tax you should either have receipts if self-employed or payslips if employed. These link to your NI and Tax reference.

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