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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am returning to the UK from Dubai where I have been resident

Customer Question

I am returning to the UK from Dubai where I have been resident for nearly 13 years. I will start a new job in the UK in December. Is there any limit to the number of days I can spend in the UK in this tax year before starting this new job?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. The number of days you can spend in the UK as a non resident is 91 in any one tax year without infringing your residential status. This 91 days may be averaged over four tax years, but the general consensus of opinion on this site is that to be on the safe side never to exceed the magic 91 days. This rule only applies to visits to the UK from Dubai and return thereto. It does not apply to permanent arrivals from overseas. On final return to the UK HMRC will split the arrival year into two portions, the first non resident and the other resident and make you resident for the tax year following your arrival. I do hope that I have shed some light on your position.
Customer: replied 2 years ago.
Thanks. Does the 91 get pro-rated if you return mid way through a tax year.
Expert:  bigduckontax replied 2 years ago.
As far as I can see from research no, but to be on the safe side and to protect your Dubai income from UK taxation it might be adviseable to adjust it pro rata! I will go on hunting for you!
Expert:  bigduckontax replied 2 years ago.
This is exceedingly complex. However Tax Café gives the flowing guidance: 'If you leave the UK to work full-time abroad under a contract of employment, you are treated as not resident and not ordinarily resident if you meet all the following conditions:your absence from the UK and your employment abroad both last for at least a whole tax yearduring your absence any visits you make to the UK- total less than 183 days in any tax year, and- average less than 91 days in a tax year. (The average is taken over the period of absence up to a maximum of four years. Any days spent in the UK because of exceptional circumstances beyond your control, for example the illness of yourself or a member of your immediate family, are not normally counted for this purpose.)If you meet all these conditions, you are treated as not resident and not ordinarily resident in the UK from the day after you leave the UK to the day before you return to the UK at the end of your employment abroad. You are treated as coming to the UK permanently on the day you return from your employment abroad and as resident and ordinarily resident from that date.If you meet ALL these conditions, you are entitled to claim non-UK resident and non-UK ordinary resident status from the day following departure from the UK for full-time work abroad as above. That status continues as long as you continue to meet all of these conditions.' I still wouldn't risk it though, it might cost you dear! You could, of course, always ask HMRC on www.hmrc.gov.uk/enq
Expert:  bigduckontax replied 2 years ago.
The situation on return to the UK is covered in HMRC Notice RDRM10245 which you can find here:
http://www.hmrc.gov.uk/manuals/rdrmmanual/RDRM10245.htm
It is clear from reading the advice that it is better to ensure that all payments for your Dubai income are in your possession before you vacate the Gulf as otherwise you will have to apply for an exemption authority.
Expert:  bigduckontax replied 2 years ago.
Got it at last, from the KPMG web site viz:
'Similarly, the number of days of presence will be pro-rated from the 90 days for a full tax year.'
So I was right to warn you to be careful. The 91 days will be adjusted pro rata say 8 / 12 x 91 = 60 days so watch out.
So sorry it took so long. Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 2 years ago.
Isn't that only in the year of departure from the uk, not in the year you return?
Expert:  bigduckontax replied 2 years ago.
No, I know it refers to leaving but under the split year arrangements it works both ways. How many days have you spent in the UK since April?
Customer: replied 2 years ago.
Case 6 of split year talks about a limit on the days you can be in the uk. Returning in November would be a maximum of 60. However this relates only if you have been non resident for less than 5 years. I had heard before that if you have been away for 5 years or more then case 5 applies and then it comes down to ties. I have 2 ties so in a full year would normally have to spend over 120 days in the uk in a full year or 80 days if I return in November. This on the gov.uk website. Does that sound right. If it does I am way short of 80.
Expert:  bigduckontax replied 2 years ago.
Then you should have nothing to worry about.
This is a fiendishly complex area of UK taxation. The Statutory Residence Test was supposed to make it simpler, but has caused even more confusion.
Customer: replied 2 years ago.
Do you agree with my version?
Expert:  bigduckontax replied 2 years ago.
With respect I said so:
'Then you should have nothing to worry about.'
bigduckontax and 2 other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.