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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hi, I currently work in Iraq on rotations and am going to be

Resolved Question:

Hi, I currently work in Iraq on rotations and am going to be in the UK for less than 91 days in the upcoming tax year 2014-15. Do I need to complete a p85 form to be exempt from income tax for the upcoming tax year, and if so can you please give advice on completing as I will not have a fixed address in Iraq other than the camp that I reside on. I am unmarried, have no children and do not own a home.
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise if this is a full time job in Iraq (you say you will be working on rotations) and that you will be out of the UK for a complete tax year i.e. 6 Apr 2014 to 5 Apr 2015.

The rule pertaining to UK residency for tax purposes changed from 6 Apr 2013.

Many thanks
Customer: replied 3 years ago.

Hi,


 


I work anything from 4-weeks to 6-weeks at a time, working 10 hours per day 7 days per week.


 


Thanks.

Expert:  taxadvisor.uk replied 3 years ago.
Daniel, thank you for your reply.

Based on information provided, it would appear you would meet the third automatic overseas test as per the statutory residence test guidance note 1.7 on page 10 of RDR3 here.
i.e. You work full-time overseas over the tax year, without any significant breaks during the tax year from overseas work, and:
- you spend fewer than 91 days in the UK in the tax year,
- the number of days in the tax year on which you work for more than
three hours in the UK is less than 31.

That being the case you would be regarded non resident for the tax year in which you meet this test and that you would be exempt from UK income tax on overseas income for that tax year.

More information on the Statutory Residence Test (RDR3) can be found here

http://www.hmrc.gov.uk/international/rdr3.pdf



Now the question about completing form P85 .. this form is completed to enable the tax office get your tax affairs right. One of the requirements is that you are going to work abroad full-time for at leat one complete tax year. The address in Irag can be the camp where you will be based (or where post for all workers is received).

Once you have read what information is required and you have any questions please come back to me.

Form P85 can be downloaded here

http://www.hmrc.gov.uk/cnr/p85.pdf

I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.



Customer: replied 3 years ago.

That's very useful information, thanks.


 


Just one more question is that I have been working in Iraq since September 2013 and did not fill in the p85 before starting my job as I didn't realise I had to.


 


Therefore, for the questions about the job start date and the date leaving the UK, should I put the actual date I started working in Iraq, or put the beginning of the next tax year, ie 6th April 2014?

Expert:  taxadvisor.uk replied 3 years ago.
Daniel, thank you for your reply.

You should put the actual date of leaving the country for your job abroad... i.e. Sep 2013.

Please put actual dates.

I hope this is helpful and answers your question.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 3 years ago.
I thank you for accepting my answer.

Best wishes.