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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4199
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Im in full time employment in the uk and pay my taxes,but

Customer Question

I'm in full time employment in the uk and pay my taxes,but I'm now going to work overseas on a 28/28 rotation and live in Asia on my time off.My money will be paid into my UK bank account and I will be renting out my property which I will pay the 30% tax on for living abroad.What I need to know is,do I need to inform the tax man of this?do I just stop paying tax?and how many days am I allowed back into the UK without paying tax?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

When you leave the UK for Asia you should send a P85 to your tax office. They will then treat you as non resident for the next tax year and, under an extra statutory concession, split the year of departure into two parts, one resident and one non resident. You can then forget about your overseas earnings, even if they are paid into your UK bank account, although I would advise a local one be employed, if possible. However, if you work for any of the following categories then matters are more complex. HMRC state that;

'Special rules for certain employees

There are special rules for:

Crown employees
Seafarers
Oil and gas workers
Entertainers and sports people
Students.'

Indeed, if you are an oil rig worker then HMRC will not post any advice on the web at all and you must consult with your tax office as to your position.

In general terms if you spend less than 90 days in the UK per year your non resident status will not be impaired.

However, you will be liable for UK taxation on your net rental income, less, of course, your personal allowance of 10K. Remember repairs are allowable against Income Tax (IT). Improvements eg new kitchen, installation of central heating etc are not allowable against IT but inflate the original purchase price for Capital Gains Tax in the event of a disposal some future, indeterminate date.

I am slightly confused as to your comment regarding tax at 30%. Perhaps you could enlighten me.
Customer: replied 3 years ago.
By you saying I would advise a local one be employed are you referring to setting up a bank account in asia?i'm an oil and gas worker so what do you mean I must consult with my tax office as to my position and do I still need to fill in the P85 form?

The 30% tax rate I'm told from my leasing agent will be deducted from my rental income due to me living overseas?
Expert:  bigduckontax replied 3 years ago.
Yes, I am suggesting that you maintain a local bank account in Asia.

I mean exactly what I say about consulting your tax office. Oil and gas rig workers tax affairs are so complex that no HMRC advice is available or posted and HMRC are insistent that each case be referred to them on an individual basis.

I would still advise that you complete a P85 on departure.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.