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Sam
Sam, Accountant
Category: Tax
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Hello. I am considering taking work with an international

Resolved Question:

Hello. I am considering taking work with an international mission (an EU one) situated outside the EU. I plan to work there from January 2015 through to April 2016. I co-own a house in London but will be living exclusively abroad with just the occasional trip back to London during this period. The mission's mandate needs to be renewed in November but this will be a formality. But it does mean that my initial job offer is up to November 2015. My overall salary would consist of two-thirds salary and approximately one-third per diem living expenses. Could you let me know if I would be liable to pay UK income tax?
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.
Can you advise what date (approx. ) in April 2016 this position will last until.
The reason I ask, is that IF you come back to live and work in the UK before 05/04/2016, then you will initially be treated as UK resident throughout this time abroad, as you will not have completed one whole tax year out of the UK (which will run in the middle of your time away from 06/04/2015 to 05/04/2016)
If you do plan to be out of the UK beyond 05/04/2016, then the other factor, is that your visits back to the UK should not exceed 90 days, this will ensure you remain treated as not resident, which means that the money paid (both salary and expenses) will be exempt from UK tax.
Also with the renewal of the mission mandate in Nov, make sure that you do not use this a return to the UK, as this will break the cycle of you being treated as not resident for the whole year (as it will in essence be treated as one contract finishing and other commencing.
If you will e back before 05/04/2016, then you will be treated as liable to tax on both the salary and the living expenses (less the UK personal allowances)
You do not indicate whether you plan to rent out your property (you advise you co- own it, so perhaps not) - but this also has a tax consideration in the UK, if this is the case.
You should complete form P85 for HMRC on taking this position up, as this will allow them to establish the initial position of residency (for UK tax purposes) and also review the position should you be receiving any rental income on the property you co -own
Link here for form P85 https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/PersonalTax_iForms/1.0/P85&template=P85.xdp
Let me know if you have any follow up questions, or will be renting the property from the UK out to tenants.
Thanks
Sam
Customer: replied 2 years ago.

Hello Sam and thanks for the prompt service.

I would look to returning after 05/04/16 and no, I'm not renting out the house as my husband will continue living in it.

Expert:  Sam replied 2 years ago.
Hi
Thanks for your response
Then as long as your visits do not exceed more than 90 days (pro rata'd for the period Jan 2015 to 05/04/2015 and again 06/04/2016 to the date you return) and that you do not return home in Nov 2015, when the mandate is renewed) then you will be treated as not resident throughout the whole period of time, which means all income paid will be exempt from UK tax.
Plus you will be due a tax refund (if any tax has been paid) from your UK tax position from April 2014 to Jan 2015 (due to unused personal allowances)
So complete the P85 and send into HMRC with your P45 before you leave the UK.
if you require any additional help, then do let me know, but, if in the meantime you could rate the level of service I have provided (or click accept) this ensures Just Answer credit me for my time.
Thanks
Sam
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