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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have been working overseas in Saudi since January 2012. During

Customer Question

I have been working overseas in Saudi since January 2012. During that time I have only been back to the UK for holidays never more than 60 days in total per tax year. This tax year so far I have been in the UK 15 days. I do not work in the UK. My Contract expires on 6 Jan 2015, 3 months before the end of the tax year. Will I be liable to pay income tax on my saudi earnings for this tax year? I have a military pension in the UK on which I pay tax.
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

For the 2014/15 tax year, you will be limited to spending no more than 75 days in the UK as you will be returning to the UK before the end of the tax year. Take a look at Table F on page 60 of the Statutory Residence Test document (RDR3) here and here.

You should qualify for split year treatment for 2014/15 if you meet the criteria in Section 5 of RDR3, starting on page 51. One or more of Cases 4 to 8 should apply to you. If they do, the 2014/15 tax year will be split into two periods, 6 April 2014 to 6 January 2015 and 7 January 2015 to 5 April 2015. All overseas earnings in the first period will be exempt from UK tax. The split year rules are summarised here.

Take a look at the flowchart here which will give you an idea of which of the Cases 4 to 8 will apply to you.

I hope this helps but let me know if you have any further questions.

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Customer: replied 3 years ago.


Thank you, it seems that Case 6 for split year treatment is closest to my situation although I dont own an overseas house as per example 39.


Should I just fill in a self tax assessment form on my return do you think? HMRC have no real records I ever worked overseas as I didnt complete an P85 before I left.

Expert:  TonyTax replied 3 years ago.
Case 6 is probably most relevant to you. You will need to complete a tax return to claim split year treatment for the tax year of your return to the UK. You will also need to complete the residence/remittance pages SA109 as part of the tax return and you can find those here.