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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I have an Italian passport but have lived & (worked) in

Customer Question

Hi, I have an Italian passport but have lived & (worked) in the UK for 50 years, i have been offered a job in Saudi Arabia as a governess, I can be paid in Euros Dollars or GBPs what advice do you have in terms of Tax and N.I. contributions. i have not had a regular income for the last 4 years 2011 due to working a couple of temp roles and travelling to Italy to look after an ailing parent (respite care)
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. When you leave the UK for Saudi complete a Form P85 and send it to HMRC. On receipt HMRC will make you non resident for the tax year after your date of departure and furthermore split the leaving year into two portions, one resident and the other non resident. It would seem best to be paid in GBP as the euro is somewhat erratic these days. If you are being paid through PAYE then HMRC will issue the appropriate tax code to as not to deduct tax, only NI contributions. If, however, you are being paid outside the PAYE envelope, you will have to make voluntary NI contributions to keep your card stamped to use an old expression. If you can afford it you can make up back NI contributions to cover those four years though if you have over 35 years contributions this is an exercise in financial futility as you have enough for the proposed new State Pension systems. I do hope that my reply has been of assistance.
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Customer: replied 1 year ago.
Thanks Keith, i dont think im being paid via PAYE. As my children are here its important that i dont do anything that will jepordise my my residency & coming and going freely. thank you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
I should have mentioned that if you go down the P85 route you may only return to the UK for 91 days in any tax year although this can be averaged out over four tax years. If you are not being paid under PAYE then you will have to voluntarily pay NI contributions.
Customer: replied 1 year ago.
Oh! and if I dont go the P85 route?
Expert:  bigduckontax replied 1 year ago.
Then you will remain resident in the UK for tax purposes and there is a danger of HMRC taxing you on your world wide income. You will find things much easier if you use the P85 procedure. When you eventually return to the UK then you advise HMRC of your arrival and the split year procedure is reversed.

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