# Is money tax free when you return to the uk ?



## EllieJ (Aug 28, 2008)

Hi

If you work in dubai, and get your money paid into a off-shore bank account, then come back to the uk, 12-24 months time, is the money still tax free ?

Also is the a limit of the amount of nights you can spend in the uk during this period ?


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## Trusty (Sep 10, 2008)

EllieJ said:


> Hi
> 
> If you work in dubai, and get your money paid into a off-shore bank account, then come back to the uk, 12-24 months time, is the money still tax free ?
> 
> Also is the a limit of the amount of nights you can spend in the uk during this period ?


Check the update with inland revenue first, but when I left the UK 2 years ago the rule was you have to inform them you are leaving the country. You won't have to declare your income from Dubai if you spend more than 6 months (between April-March) out of the country - if you don't need to declare your earnings then there's no tax to pay & it's all yours.


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## crazymazy1980 (Aug 2, 2008)

Trusty said:


> Check the update with inland revenue first, but when I left the UK 2 years ago the rule was you have to inform them you are leaving the country. You won't have to declare your income from Dubai if you spend more than 6 months (between April-March) out of the country - if you don't need to declare your earnings then there's no tax to pay & it's all yours.


I had different information on this.

You have to fill in a P85 when you leave. I have also been told that you can only stay in the UK for 89days or less within any tax year to not pay UK Income Tax. 

This website seems to have the answers you seek

Paying Taxes When You Live Abroad - Go Work Abroad (UK)


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## Maz25 (Jul 6, 2008)

crazymazy1980 said:


> I had different information on this.
> 
> You have to fill in a P85 when you leave. I have also been told that you can only stay in the UK for 89days or less within any tax year to not pay UK Income Tax.
> 
> ...


Yes, you do need to fill in the form. Based on the information that you provide, HMRC will determine whether you are a resident or non-resident for tax purposes. The best thing to do is to seek advice from HMRC and they should be able to advise accordingly.


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## Elphaba (Jan 24, 2008)

I have provided the answers on this several times already.

Leaving the UK and earning overseas does not automatically mean you are not liable for UK tax. A P85 is an application to be treated as non-resident. If you have already spent more than 89 days in the UK during a tax year you are usually liable for income tax on the remainder of that year, UNLESS you are non-resident for an extended period, usually over 4 years. In that case the split year rule may apply, but this is a HMRC concession.

Returning to the Uk is another matter (& I am sure I answered this yesterday in another thread). If you take money back into the UK and have only been non-resident for a short period, such as the 2 years mentioned, you will be liable for Capital Gains Tax.


For the record, I advise on these matters as part of my business.


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