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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have been resident in Singapore 3 yers previous

Resolved Question:

I have been resident in Singapore for about 3 yers previous to coming back to the UK in March this year. My family are still in singapore. I am doing a 12 month contract for a finnish company but being paid as PAYE from their UK sub. I will be going back to singapore after the contract. I work away a lot - my question is what are the restrictions to me being able to claim back some/all of my tax when I leave again?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question.
You say you are on a 12 month contract working for Finnish company but on UK payroll.
If your contract expires in say Aug 2016 and then you decide to go back to Singapore, you should complete a form P85 and send it to HMRC. This would enable the tax office to update your records and work out any repayment of overpaid tax in tax year 2016-17 (tax year ending 5 Apr 2017).
You would get full year allowance against the income to date of leaving and your tax would be calculated on that basis. It is likely you would get some tax back dependent on how much tax had been deducted in the first place.
More information on this can be found here
https://www.gov.uk/tax-right-retire-abroad-return-to-uk
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
HiAs I understood it as I have been tax resident in Singapore for the last 3 years and my residence is still in Singapore - therefore not based in the UK there is possibility of claiming all tax back for this period so long as I am not physically in the UK for more than 180 days in the tax year - can you clarify this please?Thanks
Patrick
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.
There have been changes to residency rules for tax purposes and these are explained in HMRC guide RDR3 here
You would not qualify the automatic overseas test covered on pages 9 and 10 and based on information provided you would be deemed UK resident in the tax year because of UK ties. There are five potential UK ties as follows:
- Having a spouse, civil partner or minor children resident in the UK.
- Having accommodation in the UK that is made use of during the tax year. The definition of what counts as accommodation is quite detailed, but it generally does not include owning a property that is let out, short visits with relatives, and stays in hotels.
- Doing substantive work in the UK. This is defined as working for 40 or more days during the tax year (a working day is as per previously defined).
- Spending more than 90 days in the UK during either of the two previous tax years.
- Spending more time in the UK during the tax year than in any other single country.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/458559/RDR3_govuk_hyperlink__updated_078500.pdf
Also you may find this article on statutory residence test from my accountancy body helpful
http://www.accaglobal.com/sg/en/member/cpd/taxation/cpd-articles/fa13-statutoryresidence.html
I hope this is helpful.
Customer: replied 1 year ago.
So....
as my family stay in Singapore, if I can remain under 90 days in the UK and stay in 1 other country for more than the stay in the UK then I would be eligible to reclaim my tax?Thanks
Patrick
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.
You would be deemed non resident if you meet any of the 3 automatic overseas tests and they are:
- a person stays in the UK for fewer than 16 days during the tax year.
- a person stays in the UK for fewer than 46 days during the tax year, provided they have not been resident for any of the previous three tax years. Although actual residence status for tax years prior to 2013-14 must be determined according to the old, less certain rules, for the purpose of this test a person can elect to determine their residency status for years prior to 2013-14 according to the statutory test basis.
- a person carries out full-time work overseas (defined as working an average of more than 35 hours per week either on an employed or self-employed basis) during the tax year without any significant breaks. Visits to the UK must be fewer than 91 days during the year, and no more than 30 days can be spent working in the UK. A working day is defined as any day where more than three hours of work are carried out.
Otherwise, you consider the UK ties test. Provided your stay is less than 90 days you would be deemed non resident. Earnings arising in the UK would be chargeable to UK income tax and you would get your personal allowance. If you are employed by the UK subsidiary on their payroll but your duties are performed abroad and you are deemed non resident for tax purposes, then you should ask for NT tax code (no tax payable on salary).
I hope this is helpful.
Customer: replied 1 year ago.
Hi,So last question - how would I go about applying for the NT code? I would do this now so as to stop paying PAYE immediately?
Expert:  taxadvisor.uk replied 1 year ago.
Patrick, thank you for your reply.You should contact your tax Office and request they apply NT tax code to your payroll on the grounds that you are carry out your employment abroad and you are non resident in the UK for tax purposes.I hope this is helpful.If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it by Just Answer.
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