# Confused about UK tax issues



## pc4084 (Jul 3, 2009)

Hi there,

I am moving to Dubai next week, and have completed and sent off a form P85 for the Inland Revenue. My wife and children will remain in the UK, and our house is in joint names.
I intend sending about £4500/month back home to cover my children's school fees and mortgage, as well as trying to reduce our overall debt (by saving a proportion then paying off outstanding loans etc). Apart from visiting the family for two weeks every year, I do not intend returning to the UK. It sounds harsh, but our plan is for the wife and kids to join me in Dubai late next year (after we sell the house etc).

Now, having read other threads about tax status, I'm very confused.

If I send back £4500/month, will I or my wife get taxed on it?

Best Wishes


pc4084


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## Elphaba (Jan 24, 2008)

When exactly will you be leaving the UK? That can make a difference if you are only going to be overseas for a few years. If however, you leave at the start of a tax year and sepend less than 90 days in that year in the UK, your overseas income will not be liable for UK income tax. At the moment there is no problem with you sending overseas income back to the UK, although HMRC is starting to look at such cases (where most income remitted to UK and all family there) for very high earners. I would not expect you to have a problem, but would suggest that savings be paid to an offshore, not a UK, account. 

Your wife will not be subject to tax on your income.

Hope that helps.

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## pc4084 (Jul 3, 2009)

Elphaba said:


> When exactly will you be leaving the UK? That can make a difference if you are only going to be overseas for a few years. If however, you leave at the start of a tax year and sepend less than 90 days in that year in the UK, your overseas income will not be liable for UK income tax. At the moment there is no problem with you sending overseas income back to the UK, although HMRC is starting to look at such cases (where most income remitted to UK and all family there) for very high earners. I would not expect you to have a problem, but would suggest that savings be paid to an offshore, not a UK, account.
> 
> Your wife will not be subject to tax on your income.
> 
> ...


Hi Elphaba,

I'm leaving the UK this Friday, my contract is permanent and I intend living in Dubai for at least 10 years. My yearly income will be about 464400 AED (about 83000 GBP).
As for returning to the UK, I'll be there about 2 weeks a year (the family will be joining me in Dubai for school holidays etc).

Thanks for your help, you've put my mind at rest.

Best Wishes


PC4084


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## Elphaba (Jan 24, 2008)

pc4084 said:


> Hi Elphaba,
> 
> I'm leaving the UK this Friday, my contract is permanent and I intend living in Dubai for at least 10 years. My yearly income will be about 464400 AED (about 83000 GBP).
> As for returning to the UK, I'll be there about 2 weeks a year (the family will be joining me in Dubai for school holidays etc).
> ...


Given your circumstances, I don't see any major issues. Contact me if you have any other queries. (See links in my signature below)

Hope all goes well. 

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## cautious_mover (Dec 9, 2009)

pc4084 said:


> Hi Elphaba,
> 
> I'm leaving the UK this Friday, my contract is permanent and I intend living in Dubai for at least 10 years. My yearly income will be about 464400 AED (about 83000 GBP).
> As for returning to the UK, I'll be there about 2 weeks a year (the family will be joining me in Dubai for school holidays etc).
> ...


I would suggest contacting an international tax specialist in the UK. If you are opening an offshore account, the banks will have someone who can assist also.


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## Elphaba (Jan 24, 2008)

cautious_mover said:


> I would suggest contacting an international tax specialist in the UK. If you are opening an offshore account, the banks will have someone who can assist also.


Avoid banks for advice. Their staff are rarely qualified regarding tax issues. 

An experienced and qualified independent adviser can easily deal with any standard tax queries such as this. You do not need to hire a UK specialist for basic information.

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## cautious_mover (Dec 9, 2009)

Elphaba said:


> Avoid banks for advice. Their staff are rarely qualified regarding tax issues.
> 
> An experienced and qualified independent adviser can easily deal with any standard tax queries such as this. You do not need to hire a UK specialist for basic information.
> 
> -


Elphaba - I beg to differ re your comments on the banks. I used to bank with NatWest Isle Of Man and they had some excellent on staff advisors to deal specifically with expatriate account holders and tax questions.

As the tax questions refers to the UK Inland Revenue, the sensible money would be on using the specialists in UK rather than UAE, for example.

Always best to use local knowledge when it comes to tax efficiency.


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## Elphaba (Jan 24, 2008)

cautious_mover said:


> Elphaba - I beg to differ re your comments on the banks. I used to bank with NatWest Isle Of Man and they had some excellent on staff advisors to deal specifically with expatriate account holders and tax questions.
> 
> As the tax questions refers to the UK Inland Revenue, the sensible money would be on using the specialists in UK rather than UAE, for example.
> 
> Always best to use local knowledge when it comes to tax efficiency.


You are not correct. Many so called UK advisers only understand issues relating to resident, not non-residents. Some of us understand both angles.

It is Her Majesty's Revenue & Customs now (& has been for some time) not the Inland Revenue 

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## cautious_mover (Dec 9, 2009)

Elphaba said:


> You are not correct. Many so called UK advisers only understand issues relating to resident, not non-residents. Some of us understand both angles.
> 
> It is Her Majesty's Revenue & Customs now (& has been for some time) not the Inland Revenue
> 
> -


Ahhh !! So you are touting for business !:fencing:


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## Elphaba (Jan 24, 2008)

cautious_mover said:


> Ahhh !! So you are touting for business !:fencing:


I have no need to, but this is my field of expertise and I will correct misunderstandings or misguided information...

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## cautious_mover (Dec 9, 2009)

Elphaba said:


> I have no need to, but this is my field of expertise and I will correct misunderstandings or misguided information...
> 
> -


I therefore stand corrected....:focus:


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## pc4084 (Jul 3, 2009)

Thankyou.

pc4084


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