# Working for a full tax year



## ange (Oct 17, 2008)

Hi,

I've seen lots of threads on this subject but I'm still unclear as to what the situation is.

I'm a UK resident and I'm planning to move to Dubai over the next couple of months. I've seen information on tax on worldwide earnings if you are not out of the UK for an entire tax year. Does this mean that if I work in the UK up until the 10th April 2009, I would then have to pay UK tax on all of my Dubai earnings up until April 2010? Or have I misunderstood?

Thanks.


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## stevieboy1980 (Sep 9, 2008)

nooooooooo....

you need to be out of the country for a period of 89 days at a time...

elphaba will clairfy


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## ange (Oct 17, 2008)

Great, thanks. I thought that seemed a strange rule, but then I'm no tax expert! So I guess if I work for less than 89 days in the UK at the start of the tax year and stay out of the country for the rest of the tax year, the government can't claim any tax on me for what I earn in Dubai after that.

Cheers!


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## ExpatAl (Dec 9, 2008)

You have to be out of the UK before the start of the new tax year and not return to work before the start of the next tax year to gain the benefit.
You can return to the UK, holidays etc for 89 days but you can not work.


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## ange (Oct 17, 2008)

Thanks ExpatAl, but what exactly do you mean by gaining the full benefit? If I work in the UK even just the first day of the tax year I will be then liable to pay tax on my Dubai earnings for the rest of the year?


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## ExpatAl (Dec 9, 2008)

I work for a UK based company, am paid in the UK (in sterling). I have been in the UAE 5 months and am paying 40% tax on my earnings. Until I recieve my notification from the tax office of my new tax code I will remain paying full UK tax. I will have to remain outside UK (except for holidays) for a full UK tax year, April 2009 to April 2010 to not pay UK tax.

If I was to return the UK during that tax year to work I would be required to pay back the unpaid tax.

If i remain outside the UK until April 2010 I can claim back the paid tax between the date I arrived and April 2009.

It's all about timing.

All this imformation is on the relevant Inland Revenue webpages.


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## Macbook7 (Jan 24, 2009)

Wonder if someone could advise me too : 

I arrived in Dubai on the 2nd Jan. I now have a UAE bank account, but my res-visa is still in progress.

Can I be paid into a UAE account and not pay the UK tax, or do I have to continue until my visa is approved, and the tax-year re-starts. I guess they will be similar timings.

Any advice would be appreciated.


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## JJDubai (Sep 29, 2008)

*Check out Inland Revenue website...*

HM Revenue & Customs: Non Residents


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## Elphaba (Jan 24, 2008)

ange said:


> Thanks ExpatAl, but what exactly do you mean by gaining the full benefit? If I work in the UK even just the first day of the tax year I will be then liable to pay tax on my Dubai earnings for the rest of the year?



No you won't. Provided you spend no more than 89 days in the Uk during a full tax year you should have non-resident status. Don't forget to complete and submit HMRC form P85 in order to register for non-resident status.

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## Elphaba (Jan 24, 2008)

Macbook7 said:


> Wonder if someone could advise me too :
> 
> I arrived in Dubai on the 2nd Jan. I now have a UAE bank account, but my res-visa is still in progress.
> 
> ...



Firstly, your UK tax status is not dependent on having a UAE visa.

You may be liable for UK income tax on your income for the remainder of this tax year (until 5th April) depending on how long you remain UK non-resident. If for example, you return to the UK on say, 10th April 2010, you would be liable for UK tax on the current partial year. If however, you become non-temporary non-resident (5+ years) you would be able to avoid paying UK income tax for this period.

Your income will be paid to a UAE account, but this does not necessarily exempt you from paying UK tax. 

Don't forget to complete and submit HMRC form P85 in order to register for non-resident status.

-


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## Macbook7 (Jan 24, 2009)

Elphaba said:


> Firstly, your UK tax status is not dependent on having a UAE visa.
> 
> You may be liable for UK income tax on your income for the remainder of this tax year (until 5th April) depending on how long you remain UK non-resident. If for example, you return to the UK on say, 10th April 2010, you would be liable for UK tax on the current partial year. If however, you become non-temporary non-resident (5+ years) you would be able to avoid paying UK income tax for this period.
> 
> ...


Thanks for the advice. Will be going back to the UK on Friday for 3 days, so will get the forms signed then.

Thanks again


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## ange (Oct 17, 2008)

Elphaba said:


> No you won't. Provided you spend no more than 89 days in the Uk during a full tax year you should have non-resident status. Don't forget to complete and submit HMRC form P85 in order to register for non-resident status.
> 
> -


Thanks for your help!


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