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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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Residency Tax - Looking at potential role in Saudi Arabia,

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Residency Tax - Looking at potential role in Saudi Arabia, starting Dec2014/Jan 2015. I currently live in the UK. I am an standard employee, current employer withholds and pays income tax to HMRC, and do not complete a self assessment. My understanding is I will be resident in UK for the 2014/2015 tax year, as I would have been in the country greater than 183 days. Do I need to complete a Self Assessment for the 2014/2015 tax year, and include income earned abroad? What impact does this have on the 2015/2016 year? For 2015/16 I would qualify as non resident under 3rd automatic overseas test. So my understanding is I will not be UK resident for tax purposes in 2015/2016 tax year. Would I still need to submit a nil self assessment for the 2015/16 year? Appreciate any tax advice planning which may be available.
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
As you most likely have already read;
You'll be treated as non-resident from the day after you leave the UK if you can show:
you left the UK to go abroad permanently or your absence and full-time work abroad lasts at least the whole tax year
your visits to the UK are less than 183 days in a tax year and average less than 91 days a tax year over a maximum of four consecutive years
You'll need to fill in a UK tax return for income from any work you did in the UK during the tax year, unless tax has already been deducted in full by your employer.
You will need to file a self assessment to report income earned while a nonresident if the income is sourced to the UK.
If you're non-resident and get overseas income, no UK tax is due.
If you are working for the same employer from the UK they will continue to withhold. The basic rule is that your employer must continue to calculate and deduct PAYE tax in the normal way from all their payments to any of their employees who work abroad.
Your employer should ask you to complete a form P85 and send it to HMRC who will consider an appropriate tax code.
If you receive no other income in the UK after you leave then you woudl not be required to file a self assessment.
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