# UK Tax Question



## twiglet (Jan 1, 2013)

Good morning everyone!

Sorry to ask a possibly already asked, but I'm currently a UK Taxpayer and have accepted a position in Dubai.

The start date is the 7th April 2013, and my last day working in the UK will be the 30th March 2013. I will receive my March earnings at the end of April, but they will NOT have been earned in the 2013/14 Tax Year.

I intend to arrive in Dubai no earlier than the 6th April 2013.

Providing I am "Non-Resident" for a minimum of one entire UK Tax Year, what will my liabilities be to UK Tax?

Will it simply be the tax payable on the 2012/13 earnings and nothing more (except for any other income - rent etc.)?

For obvious reasons, I don't wish to catch myself out on a technicality...

Please - any advice is very gratefully received.

Thanks

Rich


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## Elphaba (Jan 24, 2008)

Hello

A question for me. 

Assuming you are UK non-resident for a full tax year (less allowed days in UK) and are out of the UK at both the start and end of the year, you should be deemed UK non-resident for tax purposes and overseas earning during this period will not be liable to UK tax.

If you are referring to UK earning for March 2013, but payable after 6th April 2013, this is income arising in the UK, so will still be liable to UK tax, assuming your total UK earnings for 2013/14 exceed the personal allowance (GBP 9,205 in 2013/14).

If you remain non-resident after 6th April 2014, liability will depend on how long you are out of the UK in that year as well as the new Statutory Residency Test (SRT) provisions.

General guidance for British expats here Guidance for British Expats – updated May 2012 | Financialuae's Blog

New information regarding the SRT will be on this site tomorrow.

And yes, variations on this theme come up regularly.  Regards to lovely West Sussex.


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## twiglet (Jan 1, 2013)

Thank you so much, that's really helpful information.

So to clarify, providing I am physically outside of the UK (and not earning in the UK) from the 6th April, anything earned in Dubai will not be subject to UK tax (again, providing I don't return until after the end of the 14/14 tax year)?

I am expecting my March earned money to be taxed as usual, as it will not have been earned in the 13/14 tax year..


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## Elphaba (Jan 24, 2008)

twiglet said:


> Thank you so much, that's really helpful information.
> 
> So to clarify, providing I am physically outside of the UK (and not earning in the UK) from the 6th April, anything earned in Dubai will not be subject to UK tax (again, providing I don't return until after the end of the 14/14 tax year)?
> 
> I am expecting my March earned money to be taxed as usual, as it will not have been earned in the 13/14 tax year..


Yes, although you can spend a few days in the UK during the tax year.(see link)

Yes, regarding March income.

Information on the new UK Stautory Residency Test on link. Your 'ties' to the UK will dictate how many days you can spend in the country during the 2013/14 tax year and retain non-resident status.

Information on the new UK Statutory Residency Test | Financialuae's Blog

-


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## FlexRay (Feb 12, 2013)

Hello!

Me and my wife are moving to Dubai next month and are in a similar situation, a bit different to me as i will still be working offshore in the UK but you are in a similar position to my wife

Providing your last payslip is before April 5th 2013 if you leave after April 6th you will need to complete 1 full UK tax year in order to not be liable for UK tax.

If continue to be paid and submit your P85 (applying to be non-resident) in September for example it just means you will need to stay in Dubai until you complete the full tax year i.e. April 5th 2015. after this date you will not be liable, before that date you are liable for all WORLDWIDE earnings to be taxed

I used this link which made it a bit easier, this is a flow chart for changes that will be coming in April 6th, none of which should affect you I don’t think!

This site isnt letting me leave a URL so go to google and cut and paste the below info, its the first PDF online attachment you see

*kpmg uk residency flowchart 'pdf'*


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## suzimack (Nov 29, 2011)

Hi


My hubby is just starting out with a new employer here, and we are totally confused over what is happening re. Tax. 

He left the UK in September, and received his final pay in October. He never received a P45 (his employer can't confirm if it was sent or not, but refuse to send another). He's requested a Statement of Earnings from the Tax Office.

His employer here is a UK company. They've asked him to complete the P85 (done) and provide a P45, P60 and final wage slip. He doesn't have these documents, as we had no idea they would be required. (I didn't need anything like this) The Statement of Earnings will be sent to his mothers address in the UK, so he won't have it here, although we can obviously get the info from it.

Where does this leave him? His new employer can apply the NT status for him, so why does he need the other documents? Surely the tax office can use their own records to determine what he has earned?


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## Elphaba (Jan 24, 2008)

suzimack said:


> Hi
> 
> 
> My hubby is just starting out with a new employer here, and we are totally confused over what is happening re. Tax.
> ...


Yes, HMRC can use their own records, but he'll need to speak to them to explain the situation. 

Is he being paid from the UK, although he is in the UAE?


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## suzimack (Nov 29, 2011)

As far as I know he will be paid from here (he doesn't have a UK account). His company say their Dubai office is considered a branch of the UK company, and tax/NIC nay be 'withheld' until his tax position is clarified (then refunded if it is decided he is entitled to NT status) 

If he can't supply P60 etc. how long will it take to 'clarify'? (I'm really not understanding how a P60 or wage slip would clarify his residency status)


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## Elphaba (Jan 24, 2008)

suzimack said:


> As far as I know he will be paid from here (he doesn't have a UK account). His company say their Dubai office is considered a branch of the UK company, and tax/NIC nay be 'withheld' until his tax position is clarified (then refunded if it is decided he is entitled to NT status)
> 
> If he can't supply P60 etc. how long will it take to 'clarify'? (I'm really not understanding how a P60 or wage slip would clarify his residency status)


I see. Annoying, but it wil get sorted out. A P60 doesn't confirm residency but shows a change of employment. The employer really ought to get this sorted for him, or as I said earlier she should speak to HMRC himself to move matters along.

One question - has he changed companies? I ask as if he is working for the same company as he was in the UK, he will have to pay UK National Insurance for a year after moving.


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## suzimack (Nov 29, 2011)

No, he's moved to a new company. He spoke to the tax office yesterday, to get the Statement of Earnings (his old employer wanted to charge him for sending one which I wasn't happy about, even though it was only GBP5 - I didn't see why he should pay at all!) I don't think the Tax Office were very impressed at this either, and took the details of the HR person who told him all this! 

I'm expecting he'll probably get taxed on his Feb & Mar wages, but is it reasonable to assume that they can apply the new code from the start of the new tax year?


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## Elphaba (Jan 24, 2008)

suzimack said:


> No, he's moved to a new company. He spoke to the tax office yesterday, to get the Statement of Earnings (his old employer wanted to charge him for sending one which I wasn't happy about, even though it was only GBP5 - I didn't see why he should pay at all!) I don't think the Tax Office were very impressed at this either, and took the details of the HR person who told him all this!
> 
> I'm expecting he'll probably get taxed on his Feb & Mar wages, but is it reasonable to assume that they can apply the new code from the start of the new tax year?


There should be no tax to pay form the date he moved to the UK, although actual liability depends on how long he remains non-resident. If earnings are being paid from the branch office here then his salary should be nothing to do with HMRC.


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## suzimack (Nov 29, 2011)

Thanks for the info! Very helpful!! We will continue to chase it up through his new employer! 😃


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## leeski09 (Jun 27, 2012)

Ok guys, heres our situation. (I'll post an intro post in the forum later).

My g/f has an offer for us all (us two and our little girl, 7rs( to move to Dubai. Her current UK company has an office in DUbai and this is where she will then work from / for. The UK office will close. The move is anticipated end of June - mid July. Where does she stand on this since the new job is for a Dubai company? My situation is fine as i am an offshore worker with a seamans card and spend over 183 days out of the UK. This work will continue for a french company.

Ultimately, is she liable for any tax in UK after we leave? Dubai earned / paid. Both will be filing for non-residence as the contract will be for 2 years minimum and i envisage us not returning to UK as we have been exploring emigrating for a little while.

Thanks for help in advance.


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## Elphaba (Jan 24, 2008)

leeski09 said:


> Ok guys, heres our situation. (I'll post an intro post in the forum later).
> 
> My g/f has an offer for us all (us two and our little girl, 7rs( to move to Dubai. Her current UK company has an office in DUbai and this is where she will then work from / for. The UK office will close. The move is anticipated end of June - mid July. Where does she stand on this since the new job is for a Dubai company? My situation is fine as i am an offshore worker with a seamans card and spend over 183 days out of the UK. This work will continue for a french company.
> 
> ...


Firstly, you do realise that it is illegal to co-habit in the UAE?

If your gf is deemed UK non-resident for tax purposes her overseas income will not be liable for UK tax. Please see the links I posted earlier. She must be non-resident for a full tax year, but if she only remains in the UAE for two years, partial years of overseas income may be liable to UK income tax, depending on exact dates.


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## leeski09 (Jun 27, 2012)

Hi,

Yes I do realise that. In my post in the introductions I state that we are getting married.

Thanks for response. Very confusing and also differing info from place to place on the forums and other sites.

Cheers for now.


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## Elphaba (Jan 24, 2008)

leeski09 said:


> Hi,
> 
> Yes I do realise that. In my post in the introductions I state that we are getting married.
> 
> ...


I don't read every post on the forum. 

Be careful where you get 'advice' from. Most posters in forums are not tax/finance professionals so they are frequently wrong. I do this for a living...


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## FlexRay (Feb 12, 2013)

Elphaba said:


> Firstly, you do realise that it is illegal to co-habit in the UAE?
> 
> If your gf is deemed UK non-resident for tax purposes her overseas income will not be liable for UK tax. Please see the links I posted earlier. She must be non-resident for a full tax year, but if she only remains in the UAE for two years, partial years of overseas income may be liable to UK income tax, depending on exact dates.


Hi Elphaba,

Quick question - i understand you need to be out the UK for a full tax year to be non resident but why would a partial year of overseas income be due if in Dubai for over 2 years? 

Craig


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## Elphaba (Jan 24, 2008)

FlexRay said:


> Hi Elphaba,
> 
> Quick question - i understand you need to be out the UK for a full tax year to be non resident but why would a partial year of overseas income be due if in Dubai for over 2 years?
> 
> Craig


Because those are HMRC rules! It depends on exact days and dates.


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## FlexRay (Feb 12, 2013)

Elphaba said:


> Because those are HMRC rules! It depends on exact days and dates.


If you have 5 mintues can you find somewhere on HMRC that states this? i have looked online and cant find anything

I would like to be 100% sure when were out there that we are not due any UK TAX

Im not doubting you, i just havent been told about this by my accountant

Regards

Craig


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## XJavier (Jan 23, 2016)

I've a question related to the UK residency statutory rules. I've read the 105 pages of the HMRC guidance and could not find an answer to a simple question:
I'm neither an automatic resident nor and automatic non resident. So I've to take the "sufficient ties" test.
I find that I'm resident if my wife is. And that I'm not resident if my wife isn't.
My wife finds the same.
It's an infinite loop. If she is resident, then I am, but to know whether she is resident she must first know whether I am resident or not. This is plain stupid, but yet I couldn't find any answer. I don't believe that nobody has eve encountered the same issue.


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## Roxtec Blue (Jan 14, 2013)

XJavier said:


> I've a question related to the UK residency statutory rules. I've read the 105 pages of the HMRC guidance and could not find an answer to a simple question:
> I'm neither an automatic resident nor and automatic non resident. So I've to take the "sufficient ties" test.
> I find that I'm resident if my wife is. And that I'm not resident if my wife isn't.
> My wife finds the same.
> It's an infinite loop. If she is resident, then I am, but to know whether she is resident she must first know whether I am resident or not. This is plain stupid, but yet I couldn't find any answer. I don't believe that nobody has eve encountered the same issue.


New claim for raising the oldest dead thread. After reading the 105 pages........ :confused2:


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