# Question for British tax experts?



## mevans (Dec 24, 2010)

Evening Ladies and Gents,
I fly out to Dubai on the 3rd July(89 days from the start of the tax year) so I am classed as non-dom for this tax year. Just!
But.......there is always a but! I am going to still be paid by my previous employer until August(severence package etc). Does this affect my non-dom status or is it based purely on country of residence at the time? I have no problems paying tax on my UK earnings, but really dont want to be taxed on my overseas income for the rest of the UK tax year.

Any help you can offer would be much appreciated.


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## neilrock (May 7, 2011)

HMRC told me that you have to leave before 183 days is up, thereafter for each tax year, it is 91 days max.

Sent from my iPhone using ExpatForum


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## olsontowers (Jan 18, 2011)

My understanding of your situation is as follows:

The key is whether HMRC will view you as being "resident" or "non-resident" in the UK for the tax year.

HMRC deems you to be "non resident and not ordinarliy resident", if you are moving abroad to work for a period of one year or more. However you may be subject to income tax on any income remitted into the UK.

If you were to spend more than 183 days in the UK for a tax year, you would most likely be classed as "resident", and as such all of your worldwide earnings would be subject to tax by HMRC. The same ruling from HMRC also states that you should not spend more than an average of 91 days or more over four tax years, in order to retain your ability to earn foreign income without being taxed on it by HMRC.

You will have to specify the date that you left the UK to HMRC so as to be classed as "non resident and not ordinary resident".

It's inveitable that you will pay tax on any income earned in the UK whether you are resident, ordinarily resident or not.

The concept of domicile under UK tax law is that you will be "domiciled" in the UK for as long as you are alive, if your father was British. It will only have an impact on your taxation if 1. you have capital gains in a tax year 2. if you die.

You can change your domicile but in simple terms, in order to do so you will need to break or minimise social, business and domestic ties with the UK. Even if you do satisfy the criteria HMRC will still deem you to be "domiciled" in the UK for 3 years after your domicle of choice has been agreed.

I hope that makes some semblance of sense, and would strongly encourage you to discuss your intentions with HMRC to ensure all is clear.

One last thing to be sure of, don't forget that Sharia Law is in place in Dubai, and if you are coming with family, you will need to ensure that you have a will written in Dubai to take this into account. If not, things can get very messy!!!

Good luck with the move, and I hope everything works out for you!!!


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## mevans (Dec 24, 2010)

Many thanks olsontowers,
Very informative and usefull post. Cleared a fair few things up for me. Certainly didnt know qbout the will side of things, thought my British will would have covered it. Will have to sort an appt with a lawyer when I get out there.


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## olsontowers (Jan 18, 2011)

If you'd like some assistance, then PM me and I'll give you the details of the person we used.


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## hubbly_bubbly (Oct 17, 2010)

My 2 cents, for what it is worth, see a reliable tax accountant before you leave to set you up properly. A good one should also make you aware of offshore possibilities, if you have property in the UK and what that all this means while you are away and when you eventually move back to the UK.


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