# Tax Expert



## Stevenh1968 (Nov 26, 2012)

Are their any UK tax experts out there?

I am coming out to Dubai to find work. I have booked a flight for the 10th of April (after the start of the new tax year) but can change it to the 4th April (before tax year end). Which flight is the better one to avoid tax?
My final pay(which is just commission) will be paid at the end of April even though I finish work at the end of March.
I want to avoid paying any UK tax!!!!


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## saraswat (Apr 28, 2012)

http://www.expatforum.com/expats/dubai-expat-forum-expats-living-dubai/142469-uk-tax-question.html

also check out the classifieds section ..


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## Stevenh1968 (Nov 26, 2012)

*Are their any tax experts out there?*

Trying to avoid paying UK tax. 
I am coming out to work in Dubai in April. I have the choose of flights, 4th (before new tax year) or 10th (after the start).
Which would you choose and why?


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## Karl2803 (Mar 6, 2012)

4th, so that you complete your tax year out of the UK sooner. If you come on the 10th and then left here before 6th April 2015 you would be eligible to pay tax on all your earning here.


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## nikkisizer (Aug 20, 2011)

Stevenh1968 said:


> Trying to avoid paying UK tax.
> I am coming out to work in Dubai in April. I have the choose of flights, 4th (before new tax year) or 10th (after the start).
> Which would you choose and why?


Hello Stevenh1968,

I would opt for the 4th simply because one of the tests to be classed as UK non resident is that you need to work full-time overseas for a complete tax year without any significant breaks and you must spend fewer than 91 days in the UK in the tax year.

Residency is a very complex area and the existing HMRC UK residency rules are set to change with effect from the 2013/2014 tax year which will involve the statutory residency test (SRT). 

Various tests will determine if you have ties such as home, work, family etc. in the UK which may well 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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## ZeeKhan (Nov 13, 2012)

nikkisizer said:


> Hello Stevenh1968,
> 
> I would opt for the 4th simply because one of the tests to be classed as UK non resident is that you need to work full-time overseas for a complete tax year without any significant breaks and you must spend fewer than 91 days in the UK in the tax year.
> 
> ...


Say you left on the 4th, but did not get a job until the end of May, so 2013-14 you worked from, May 30th to 5th April 2014, what does that mean, are you still liable for UK Tax based on the SRT


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## Bostin (Jan 21, 2013)

UK tax year is 6th April to 5th April, so if you arrived on 4th, but didn't start working (earning) until May, so long as you don't return to the UK before 5th April, subject to actual tax status (SRT) you should be OK.


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## ZeeKhan (Nov 13, 2012)

Bostin said:


> UK tax year is 6th April to 5th April, so if you arrived on 4th, but didn't start working (earning) until May, so long as you don't return to the UK before 5th April, subject to actual tax status (SRT) you should be OK.


Yeah that's what I was thinking too, thanks Bostin

Sent from my iPad using ExpatForum...Have a great day ... Zee


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## Bostin (Jan 21, 2013)

For anybody that leaves family/dependants in the UK, and or has property that they have use of (I.e. not rented) they'll need to tread very carefully with the SRT.

There's an automatic overseas test, automatic residence test and sufficient ties test.
UK Govt. is making it harder!


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## ZeeKhan (Nov 13, 2012)

Bostin said:


> For anybody that leaves family/dependants in the UK, and or has property that they have use of (I.e. not rented) they'll need to tread very carefully with the SRT.
> 
> There's an automatic overseas test, automatic residence test and sufficient ties test.
> UK Govt. is making it harder!


What’s new about the Statutory Residency Test?
H M Revenue & Customs has now issued a 124 page document which includes draft legislation relating to the Statutory Residence Test which will be introduced with effect from 6 April 2013. The aim of the Statutory Residency Test is to introduce a test that is transparent, objective and simple to use. The test has changed in format slightly from the consultation document and is outlined below –

UK resident

An individual will be UK resident if

At least one automatic residence test is met for the year or
The sufficient ties test is met for the year
Not UK resident

An individual will not be UK resident if

At least one automatic overseas test is met for the year or
None of the automatic residence, automatic overseas or the sufficient ties test is met for the year
Automatic residence test

The individual spends at least 183 days in the UK in the tax year
The individual’s only home is in the UK or, if he has more than one home, all of them are in the UK
The individual works full time in the UK – at least 35 hours per week, over a continuous period of more than 9 months (excluding short breaks) and with no more that 25% of the duties being performed outside of the UK
Automatic overseas test

The individual was resident in the UK for one or more of the three preceding tax years and the number of days spent in the UK during the tax year is less than 16
The individual was not UK resident in any of the three preceding tax years and the number of days spent in the UK during the tax year is less than 46
The individual works full time overseas for the tax year, the number of days in the year on which the individual does more than three hours work in the UK is less than 21 and the number of days in the year that the individual spends in the UK is less than 91
Sufficient UK ties test

Where the sufficient UK ties test is relevant, how many of the five ties must apply to be UK resident depends on the number of days spent in the UK. The fewer days spent in the UK the greater the number of ties can exist without becoming resident.

Family tie – this exists if in the tax year there is a relevant relationship at any time with a UK resident. The other person covers spouse or civil partner where they are not separated; living together as if a spouse or civil partner; child under 18 unless the individual sees the child in the UK for less than 61 days in the tax year.
Accommodation tie – this exists if in the tax year the individual has accommodation that is available to be used by them for a continuous period of at least 91 days in the tax year and he spends at least one night there in a tax year.
Work tie – this exists if the individual works in the UK for 3 hours per day for at least 40 days in a tax year.
90 day tie – this exists if the individual has spent 90 days or more in either of the previous two tax years.
Country tie – this exists if the individual spends more time in the UK than any other country.
Days in UK

Impact of UK ties where UK resident in the 3 years preceding the current tax year
16 to 45	resident if at least 4 ties
46 to 90	resident if at least 3 ties
91 to 120	resident if at least 2 ties
121 to 182	resident if at least 1 tie


Days in UK

Impact of UK ties where not UK resident in the 3 years preceding the current tax year
16 to 45	Not resident
46 to 90	resident if all 4 ties
91 to 120	resident if at least 3 ties
121 to 182	resident if at least 2 ties


Although these rules are intended to simplify matters, individual circumstances can be complicated, and receiving the right advice is paramount, if unintended tax residency status is to be avoided.

Sent from my iPad using ExpatForum...Have a great day ... Zee


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