# Leaving UK and Tax



## Caribbeanwind (Aug 11, 2013)

Hi Guys, I am considering a new job in the UAE (Dubai) and need some assistance regarding UK tax. Is it true that I will have to pay UK Tax until 5 April 2015 in order to break residency? This will effect my decision to come out there so any help is appreciated.


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## blazeaway (Sep 28, 2011)

Caribbeanwind said:


> Hi Guys, I am considering a new job in the UAE (Dubai) and need some assistance regarding UK tax. Is it true that I will have to pay UK Tax until 5 April 2015 in order to break residency? This will effect my decision to come out there so any help is appreciated.


No, you apply for non tax status. If you work for a UK company in UAE you may still have to pay NHI for 12 months.

I used a UK tax consultant who did it all fir me and my self assessments etc, pm me if you want his details.


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## Caribbeanwind (Aug 11, 2013)

blazeaway said:


> No, you apply for non tax status. If you work for a UK company in UAE you may still have to pay NHI for 12 months.
> 
> I used a UK tax consultant who did it all fir me and my self assessments etc, pm me if you want his details.


Thanks for the quick reply. So at what point do I stop paying UK tax please? I shall be working for a non UK company.


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## blazeaway (Sep 28, 2011)

Caribbeanwind said:


> Thanks for the quick reply. So at what point do I stop paying UK tax please? I shall be working for a non UK company.


Immediately you arrive in Dubai if it is a local company, best still to do the paperwork in the UK though


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## Caribbeanwind (Aug 11, 2013)

Thanks for that info, I was told in order to be tax free I had to work outside the UK for one whole tax year so that is good news. Cheers


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## twowheelsgood (Feb 21, 2013)

Caribbeanwind said:


> Thanks for that info, I was told in order to be tax free I had to work outside the UK for one whole tax year so that is good news. Cheers


Kind of. Its a bit more complex. You should get a dispensation for the balance of the current financial year subject to a number of criteria, such as;

Staying overseas for the following year, sometimes two subject to you;
Spending less than 90 days in UK in subsequent years
Spending less than 20 days of which are working days
Salary paid into a non-UK bank account
A local rented or acquired residence 

These are the sort of things they consider, so you cannot bail on the UK for a few months, live in a hotel and claim to be non-resident. Or bailout halfway through the subsequent year.

Only the HMRC can be definitive, but a good accountant can advise.


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## blazeaway (Sep 28, 2011)

twowheelsgood said:


> Kind of. Its a bit more complex. You should get a dispensation for the balance of the current financial year subject to a number of criteria, such as;
> 
> Staying overseas for the following year, sometimes two subject to you;
> Spending less than 90 days in UK in subsequent years
> ...


Yes Agree


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## Caribbeanwind (Aug 11, 2013)

twowheelsgood said:


> Kind of. Its a bit more complex. You should get a dispensation for the balance of the current financial year subject to a number of criteria, such as;
> 
> Staying overseas for the following year, sometimes two subject to you;
> Spending less than 90 days in UK in subsequent years
> ...


Thanks very much for the clarification on this. As I intend to go for a few years at least I think that it should work out just fine for me. I won't have any reason to work any days in the UK or come back for more than 90 days. Cheers!


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## FlexRay (Feb 12, 2013)

Note that if you leave the UK and become a non resident for tax purposes in August 2013 for example, you stope paying tax straight away but you need to stay out of the UK for a complete tax year i.e from April 2014 to April 2015.

If you don't you will be liable for tax on any worldwide earnings between August 2013 and the date you return

Craig


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## Richard1983 (May 31, 2013)

Remember to get your P45 and complete the P85 form, your current UK payroll/HR should be able to advise on this.

As mentioned by another poster there are certain criteria to fulfil or you will be liable for UK tax on your overseas earnings irrespective of company you work for.


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## nikkisizer (Aug 20, 2011)

Hi Caribbeanwind,

Residency is a complex area and now that the rules have changed with effect from the current tax year (2013/14) with the introduction of the Statutory Residence Test (SRT) your individual circumstances would need to be looked at to determine your residence status.

Ties such as home, work, family etc. in the UK may class you as UK resident for tax purposes regardless of where you reside. 

If classed as UK resident under the new (SRT) you would then be taxed on your worldwide income so it is very important that your individual circumstances are dealt with correctly to protect your residency status and exposure to UK taxation.


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## gemastar (May 17, 2012)

also, just to mention, it would be wise to consider to set up an account to keep paying your NI 'stamp' minimum whilst you are here. this way you still have access to the National health etc in future if you need to rush back for medical help. BUT most importantly you will not have a break in contributions and should still be entitled to your pension in the UK....... if... they still exist by then, that is!...... but you never know what the future holds and when you may return.
but for a small amount of money each month, I find the peace of mind.....


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