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I worked and lived in Saudi Arabia for the whole of April until

Resolved Question:

I worked and lived in Saudi Arabia for the whole of April until May 2nd. I then worked in Scotland for 3 months at the Commonwealth Games and the on 19th Sept I left the UK to work in Azerbaijan for 9 months through to July 2015.
Can I split my tax year and only pay tax for the 3 months I worked in the UK?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question
Can you advise
1) Where you were living for the tax years prior to April 2014
2) Where were you born
3) Did you advise HMRC that you had left the UK in April 2014
4) What you plan to do after July 2015 when this work in Azerbaijan finishes.
Thanks
Sam
Customer: replied 2 years ago.
I lived in the UK although I am retired and all this work has been consultancy or contract.
I was born in the UK in Birmingham.
No I didn't tell HMRC I have the hotel receipts and invoices though.
Unless I get another contract in Rio, Brazil until 2016 I will remain in the UK from July 2015.
I do security planning for large events and these happened to all come in together. I realise I will have to pay tax on the period in Scotland but not sure about the rest of this year
I am self employed sole trader and do my own tax self assessments
Expert:  Sam replied 2 years ago.
Hi David
Thanks for your response and the additional information
As things stand you if we look at each period of time, you will be treated as resident on ach occasion for the following reasons
The first period abroad in Saudi (from April to May 2014) was less than a full tax year, so cannot allow a treatment of non residency as you are a UK citizen who for the previous 3 years lived in the UK then the period in Scotland, you will obviously be treated as resident and the time in Saudi from when a period of non residency would be considered again, at this time will be for less than a full tax year.
We also have the option of reviewing the year as a whole, did you spend less than 90 days in the UK and this sadly also has not been met as
02/05/2014 to 31/05/2014 - 30 days
01/06/2014 to 30/06/2014 - 30 days
01/07/2014 to 31/07/2014 - 31 days
01/08/2014 to 30/08/2014 - 30 days
01/09/2014 to 18/09/2014 - 18 days
I know you state you only worked in the UK for 3 months, but you actually seem to have resided in the UK from May to Sept 2014.
So you will be treated as resident throughout UNLESS from this contract in Saudi you then go onto a further contract abroad (so no returning to the UK in between) and this sees you working abroad beyond 05/04/2016 - then you can be treated as not resident (and not liable to UK tax) from 19/09/2014 to the date of return (after 05/04/2016)
But you should fill in form P85 for HMRC re the period from 19/09/2014 - link here for this form,
http://www.hmrc.gov.uk/cnr/p85.pdf
so that when you complete the 2014 2015 self assessment you also fill in a residency page so that HMRC can monitor the position.
Initially on receipt of the P85 they will treat you are resident for the tax year 2014/2015 - so if you do take on a further contract following this one in July 2015, then let HMRC know and remember do not return to the UK in between those contracts.
This will then fulfil the full tax year out of the UK, and non residency be awarded for the whole period of time abroad from 19/09/2014.
You can still have up to 90 days as visits back to the UK in any one tax year just make sure these are within a contract period, not in between, and not as part of an actual return to live (or work) in the UK
Let me know if you have any follow up questions on my response
Thanks
Sam
As this exceeds 90 days (totals 129 days in the UK)
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