# TAX - Money back to UK



## Westtoeast (May 28, 2009)

Hello,

Finally we're moving back to the Uk (hubby got his spouse visa.. ).

Subject of tax: When I left the UK I filled in the P85 form as we thought I would be leaving the UK for good! So I'm currently classed as non-resident.

I left UK on/around 25 July 2009 and going back 26th March 2012.

Can anyone tell me, the earnings I've made during my employment, with a non-UK employer, when I return to the UK, will this be taxable???

I've read that no it won't be taxable, I've heard people say it's best to wait to return until a certain month to avoid paying tax... I'm confused 

Can anyone help?

Many thanks!


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## JPC (Feb 18, 2011)

As long as you've been been paid from outside the UK you'll be fine and no need to declare. By UK law if you spend more than 90 days per year in the UK and your paid from UK then your liable to pay full tax but that shouldn't effect you either by the sounds of things. This is why some people try to go back in certain months and generally works out cheaper going on holding for a month than paying her majesty your hard earned cash!!

Just make sure when your sending cash back to uk you dont send more than 10K at any one time or else you'll be liable for tax on that.

Good luck with the move home.




Westtoeast said:


> Hello,
> 
> Finally we're moving back to the Uk (hubby got his spouse visa.. ).
> 
> ...


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## alisoncar (Feb 19, 2012)

Westtoeast said:


> Hello,
> 
> Finally we're moving back to the Uk (hubby got his spouse visa.. ).
> 
> ...


Can anyone help?

Hi,

yes I can help 
Can you just clarify that you were UK domiciled (do you have a uK passport or did you live there for 5+years prior to your move to the UAE?) and did HMRC send you a document confirming you are now non resident?

Also, when you emigrated, was this because you were offered a full time job/were accompanying your husband who was in a full time employment here?

The employment income will not be subject to the UK tax if you were out of the country for the whole UK tax year (April the 6th till the next April the 5th). Split year treatment would be used if you are back before the end of the tax year (e.g. you move back between now and April the 5th 2012) - that would mean the income earned in the UAE would not be taxed but if you start earning in the UK you will be taxed on that but you will also be given your personal allowance therefore you will do quite OK. 

If, however, you come back in the first 6 months of the Uk tax year you may be liable to be taxing your worldwide income in that tax year and you will need to declare your UAE income to the UK authorities (even if it is not paid into your UK account).

People get confused about the different treatment between the income tax and the capital gain tax (CGT), since one may be liable to pay UK tax (even in retrospective) on any capital gains when returning back to the UK after less than 5 full tax years (you do get your annual allowance though) - this would be applicable in your case so if you disposed of anything valuable since you were in the UAE a CGT may be due upon your return.

Hope this helps!


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## getcape (Mar 19, 2010)

JPC said:


> Just make sure when your sending cash back to uk you dont send more than 10K at any one time or else you'll be liable for tax on that.


I am not sure I agree with this. What is your source?

Are you talking about a money transfer in the same tax year as the UK non-resident returns to the UK to become UK tax resident?


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## JPC (Feb 18, 2011)

I'm only going with what i was told my my financial advisor before i left the UK.



getcape said:


> I am not sure I agree with this. What is your source?
> 
> Are you talking about a money transfer in the same tax year as the UK non-resident returns to the UK to become UK tax resident?


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## alisoncar (Feb 19, 2012)

Hi,

please do take any of the comments as a guidance only but to clarify things briefly and simply:

1) if a person is non resident and not ordinary resident in the Uk and earn income fron non uk source as long as they are away for the whole of the Uk tax year they do not have to pay any tax 

2) issues with the above often arise when a person who is UK domiciled (again, to put it EXTREMELY simple, if you have a Uk passport and lived in the Uk prior to moving abroad you are Uk domiciled) emigrates but does not severe ties with the UK as HMRC may then view such person as a UK resident (1 person can be viewed as a resident of 2 or more countries at the same time depending on the local laws!). Please see the details of the Gaines-Cooper case. 

Following the case HMRC have issued a new guidance on the above, as a result, one is on the safest side at the moment if they spend less than 9 days in the Uk per annum. 

The 91 day rule only applied to people who had broken their UK residence
(if you went abroad to work full time and can prove this you will be fine unless you only work abroad and then dash back to the Uk to socialise/stay with your husband/wife etc). If you do not work full time then it is crucial you take the above into consideration, move your life completely out of the UK or come back less than the 9 days a year and you should be fine. 

3) as explained in my previous post, there is a difference between tax on the employment income and capital gain tax so bear that in mind if coming back to the Uk in less than 5 years from emigrating

4) any income arising from the Uk must be declared to the HMRC annually on your tax return even if you are a foreigner/non domiciled/non resident. As a Uk/EU passportholder you will get your annual exemption therefore most likely there would be no tax paid. Remember, any interest from the Uk bank account etc tends to have 20% tax taken off at source (unless you asked your bank to give it gross to you, a special form would need to be submitted to them so you would know about this). Therefore, once you submit your return and provided your income arising from the Uk does not exceed your annual allowance, HMRC will repay you the interest taken by the bank. The same goes for any rental income although this would most likely lead to tax being due from you rather than vice versa.

5) you can send back as much money as you want to (however, please bear in mind point 2 as one would have to ask themselves whether if you are sending back large amount of money you are planning to go back to the Uk and have not actually fully emigrated?) from your foreign income. The reason why you may be advised not to send more than £Xk is because the bank in the Uk may need to check the source of the money etc which would be a hassle for you. However, seeing your income etc is legit, this would get resolved in the end.

6) FYI, whilst you cannot open a new ISA after you have emigrated, you can put max. £3600 per annum for the next 5 years after emigrating into your pension provided you did have one prior to going abroad. This can be beneficial as you only put £2880 and the Uk government will top it up with 20% so you get £720 for free even though you pay not UK taxes and you live abroad.


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