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bigduckontax
bigduckontax, Accountant
Category: Tax
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Hi, I am due to leave the UK for another west African country

Customer Question

Hi,

I am due to leave the UK for another west African country on a permanent basis. The country has a DTR agreement with the UK and moreover I shall be paying tax on my income in the west African country I shall be domiciled.

My question is that, I want my income after local tax has been deducted to be transferred to my bank account in the UK just to be on the safe side. Will I need to pay tax on my net income again to HMRC again even though I will be based in the west African country all year?


Will be grateful for your advice.
Thank you
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

You will be treated as non resident if you spend a complete tax year away from the UK. This will count from the day you leave the UK to work abroad also. You may visit the UK for a maximum of 90 days aggregate per tax year during your period of absence. Tell your tax office of your intentions.

In any event, any tax paid locally will, under the DTR arrangements will be allowable as a tax credit against any UK taxation liability; you don't get taxed twice on the same income.

Transferring your money to a UK bank does not constitute income or attract taxation. Transfers may be investigated as a precaution against money laundering. Any interest you earn on your money from a UK bank is, of course, taxable, but you still have your Personal Allowance to mop it up.

I do hope I have helped to put your mind at rest.
Customer: replied 3 years ago.

Hello Keith,


 


Many thanks for your speedy response and thanks for your advice. So even if I ask the local company to pay my net income after tax into my UK account, will I still be ok?

Expert:  bigduckontax replied 3 years ago.
You should have no problem at all.
Customer: replied 3 years ago.

Cool


Thanks so much and great service! A friend mentioned I also have to complete a P85 before I leave. What do you recommend and any other advice are welcomed.


 


Many thanks

Expert:  bigduckontax replied 3 years ago.
Yes, that's the quick way to tell your tax office although surprisingly some of the HMRC web sites for working overseas are silent upon the matter!
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3708
Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.
Expert:  Sam replied 3 years ago.
Hi I am Sam just for information - link here regarding leaving the UK and the need to complete a P85, which when sent in with your P45 will generate a tax refund on any unused personal allowances - as you can imagine if you leave soon, then the refund will be small/NIL as we are close to the end of the tax year, but anytime after May 2014 will see a refund arising. http://www.hmrc.gov.uk/incometax/tax-leave-uk.htmThanksSam
Customer: replied 3 years ago.

Thanks Sam. As a have a property I am letting, I have had approval for an NRL1 certificate so rental property income is gross. Hence need to do a self assessment. Do I still need to complete a P85 or what do you suggest? Thanks


 

Expert:  Sam replied 3 years ago.
Hi

Thanks for your response

Yes still complete the P85 so that HMRC know you are due to leave the UK as the Non Residency Landlord scheme is overseen by Residency office.
The P85 will also alert HMRC that you do need to be within self assessment and they will arrange to get this set up for you (and this will delay any potential tax refund until the year end, so they can take the rental income position, and any part UK employment with tax suffered into account as a whole)

On the self assessment you will declare, for the first year part UK employment and tax suffered, the gross rents (as the certificate permits the receipt of rents without deduction of tax) but also claim the running costs of the property since the rental income commenced - such as managing agents fees, landlords/buildings insurance, any repairs etc.
Then you will also have a residency section, which asks you to provide details of when you left the UK, how many visits back to the UK during that period and as importantly a claim for personal allowances.

After that first tax year, then you just have the rental income and the residency page/claim for personal allowances to declare/claim.

Thanks

Sam

Customer: replied 3 years ago.


Thanks so much Sam! You Guys are amazing! Thanks so much. I really appreciate it


 

Expert:  Sam replied 3 years ago.
Hi

You are very welcome

Sam

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