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bigduckontax
bigduckontax, Accountant
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I am seeking advice regarding repatriation. I left the

Customer Question

I am seeking advice regarding repatriation.
I left the UK Nov 2013 and took an on-going contract position in a foreign country. The position was offered through a UK employment agency, and I am paid through an umbrella service whereby PAYE and NI are paid on my weekly remuneration, claiming offset against an overseas allowance. A significant sum of future work may be provided by UK based agencies in future in other contracts. I now have no plans to return to the UK to live, and will be working in various countries in contracts offered by agencies based both in the UK and overseas.
I have been reading guidance forms from HMRC and as far as I can tell tell, have no sufficient ties to question residency status; I do not own any property, have any spouse or any investments etc based in the UK.
What I am unclear of is how my current working status is viewed by HMRC. As I am paid by a UK Umbrella company, PAYE and NIC deducted am I viewed as employed in the UK? Does this have an effect when considering the time I have been abroad up to now?
Given the outcome of the above, by making myself non resident would I simply see future payslips come through with an NT code or would I need to arrange another payment solution?
When filling the necessary P85 should I be using the date I came here on this arrangement (Nov 2013) or should any change in status start from the date I fill the form? And finally as I am essentially a temporary worker my address abroad is not permanent. Is it acceptable to give HMRC a UK c/o address from a relative for correspondence?
Thanks in advance
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I'm Keith and happy to help you with your question.

The P85 should be completed notifying the date you originally left the UK, Nov 13. On receipt HMRC will make you non resident for the 14/15 tax year and also split the 13/14 tax year into two portions, one resident and one non resident. On your ultimate return to these shores you merely advise HMRC of the situation and a reverse process will take place. That is the administrative procedure for leaving and returning to the UK. You will retain your non resident status provided you do not spend more than 91 days in the UK in any one tax year. In theory the 91 days can be averaged out over four years, but the general consensus of opinion amongst experts on this site is never to exceed the magic 91 days.

For the period you are non resident I would anticipate HMRC issuing a NT code, but you would be liable to Income Tax for the resident portion so the code might be adjusted in an attempt to make you tax neutral by the year end of your year of departure. The deduction of NI I can only see as advantageous to you as it will keep your card stamped, to use an old expression, and also your State Pension records up to scratch.

Provided HMRC can contact you through the address notified they will not be concerned. When advising the change of address it may well be adviseable to indicate that this is an accommodation address only.

I do hope I have helped you in your attempt to create a non residential status. In fact, administratively, it is relatively simple.

Customer: replied 2 years ago.

So just to be absolutely clear, it is acceptable to put a UK care of address for correspondence and they will not view this as an address of residence?

And regarding the question on the P85 of having my salary paid from the UK, do I have to answer yes to this as my wages come through a uk agency and uk umbrella company, or is it no because ultimately the employer is not in the UK?

thanks again

Expert:  bigduckontax replied 2 years ago.
Oh, HMRC staff are renowned for getting hold of the wrong end of the stick if they can even find the stick at all. This is why I advised you, when notifying the address to HMRC, that it was an accommodation address only as you are non resident for tax purposes.
I would suggest that 'No' is the appropriate response to this box as your true employer is out with the UK. The payer is merely an agency.
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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