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Sam
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Category: Tax
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Hello, I am a professional who has moved to Qatar in August

Resolved Question:

Hello,
I am a professional who has moved to Qatar in August 2014. I intend to remain here until August 2016.
My question is about taxation in the UK.
I believe my job description meets the criteria for the 'split years' rule for UK taxation.
However I still have my residential property in the UK with an outstanding mortgage. I also have my bank accounts in the UK.
I have not alerted HMRC that I have left the country.
My accountant is going to wind up my sole trader business from the end of September 2014 and finalise the tax bill for the 2014-2015 tax year. My limited company will remain active despite no further earnings in the future (as per above dates) and dividends will be paid to me and my partner in April 2015.
My accountant is not able to advise me further re the implications of me having a house and bank accounts in the UK. Bearing in mind I intend to return in the short term am I able to be non resident for UK tax purposes given the above? Am I right this allows me to remain domiciled in the UK at the same time?
Your help would be much appreciated.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question. I am Sam and I am one of the UK tax experts here on Just Answer.
As you will achieve a full tax year living and working out of the UK (it will cover the period 056/04/20105 to 05/04/2015, then as long as your visits back to the UK do not exceed 90 days a year (this is pro rata'd for the period Aug 2014 to 05/04/2015 and for the period 06/04/2016 to Aug 2016) then you will be treated as not resident for UK tax purposes, so not liable to UK tax.
So yes you are treated as having a split year for tax purposes, for the year of departure and the year you arrive to live and work again in the UK.
If you exceed these days in the UK, OR the contract sees you back in the UK to live and work before 05/04/2016, then you will be treated as resident and liable to UK tax on this income abroad.
You do not indicate whether you have let out your home, but if so, please advise as HMRC need to be made aware of this.
You should also complete form P85 (leaving the UK) for HMRC - link here with that form
http://www.hmrc.gov.uk/cnr/p85.pdf
And a non residency position has no affect on your domicile position, as domicile looks at where you born and where you consider to be your home country.
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13810
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thanks for your reply.

My house is currently empty and has been so for the last 6 weeks. Will having an empty residential property in the UK affected my tax status given my circumstances as predicted. I hope not!

If I was to rent out the property I would of course have to notify HMRC.

Finally I did not fill a P85 form. Can this be backdated to when i left the UK? Is it something I should ask my accountant to complete?

Thanks.

Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
The fact the property is empty will have no bearing - as long as you spend less than 91 days in the UK for visits (pro rata'd for the part tax years)
if you exceed this threshold, then the empty house will be considered a tie in the UK - but as things stand your work abroad, if you spend less than 91 days in the UK is the first consideration.
You have to complete the P85, and its fine to backdate this, it just keeps HMRC informed of the fact that you left the UK and can be treated as not resident from the date you left, so a full years of personal allowances can be offset against the self employment for the year (from 06/04/2014 to Sept 2014)
(or your accountant complete it, and sends it to you to sign and submit to HMRC)
Let me know if you have any follow up questions, but if you could take the time to rate/accept the responses I have provided, it would be appreciated, as this ensures I am credited for my time
Thanks
Sam
Customer: replied 2 years ago.

Apologies - I rated you as excellent but I think it closed the thread. All i need to know is can i keep my bank accounts in the UK. Of course I will be transferring money there to pay existing mortgage.

Thats all and thanks for the great help.

Expert:  Sam replied 2 years ago.
Hi
Thanks for your response and the rating
Yes you can keep the UK bank accounts, as its you that's viewed for residency purposes (which affects the income earned abroad) and this has no affect on the fact the money is to be paid, or transferred into a UK bank account.
Thanks and you are very welcome
Sam

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