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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4199
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I am currently living and working in India (since Nov 2007)

Customer Question

I am currently living and working in India (since Nov 2007) and am planning a possible return to the UK to work from September 1.
I left the UK in October 1994, can't remember if I filed a P85 or not.
What are my tax implications? There is some confusion over whether money I remitted to my UK bank account (while working overseas in US - 2 years, Cyprus - 4 years, Norway 2 years and Taiwan 5 years) will be taxed? Different websites give different advice!
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question. Well, don't worry yourself; the P85 can be filed at any time, there is no time limit for its submission, so just put another in. The form is available on the web and can be filed on line. On receipt of a P85 HMRC will class you as non resident for the tax year after your date of departure and furthermore split the year of leaving into two portions, one resident and one non resident. The form provides for any overpayment of tax in the leaving year to be refunded. The money you earn as a non resident is not subject to UK tax and any funds you remit to the UK are outside the scope of UK taxation also. When you return to the UK advise HMRC and a reverse procedure will take place, the return year being split into non residential and residential. I do hope that I have set your mind at rest on this matter. The process occurs for thousands of Brits when they deploy overseas.
Customer: replied 2 years ago.

My concern is from the HMRC website: https://www.gov.uk/tax-foreign-income/non-domiciled-residents

- which seems to state that non-domiciled people (such as myself - living overseas) don't have to pay tax on foreign income if it doesn't go into a UK bank account?

Since I did put some of my foreign income (extracted from my overseas bank) into my UK bank account OR is it that the HMRC document is saying the income is paid DIRECTLY into a UK bank account is when this will be taxed?

It is all very confusing!

I am also unclear as to how far back HMRC will go. I was reading online that the heavily scrutinise expats when they return to the UK.

Being not very smart and having moved between countries so many times I no longer have my tax returns for the US, Cyprus, Norway and Taiwan - I am unclear on how much of a problem this will be for me. Will they accept a self-declaration as to my status that I was working in those countries if I can provide my overseas employer details? Would it be 'on me' to find the documentation or would HMRC 'help' by contacting my overseas employers to verify the facts?

Expert:  bigduckontax replied 2 years ago.

The concept of domicile is now a dead duck following the Chancellor's 2015 Budget.

Do not worry, your situation is duplicated every day and is a standard routine. Once you have gone through the P85 process there is simply nothing to worry about.

It is most unlikely that HMRC will be the slighest bit concerned over your employment activities whilst you are non resident as you are not subject to UK taxation on these earnings. Should they start to query just remind that Department of the P85.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.