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TonyTax
TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Expat tax question I worked abroad 14 Nov 2014 to 29 January

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Expat tax question
I worked abroad 14 Nov 2014 to 29 January 2106, in this time returning to the UK for a total of 18 days. I returned in late January for personal reasons and I am now undecided as to whether I will return for a longer period. Does this count as a extended period. What does this mean with regards ***** *****? Am I classed as a Non-resident and if so what are my employment allowances when back in the UK before the close of the tax year? Finally, what are the options for splitting the tax year?
Thanks in advance.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Are you thinking of not going back abroad?
Customer: replied 1 year ago.
Yes I am undecided
Expert:  TonyTax replied 1 year ago.
Thanks. Leave this with me while I draft my answer.
Customer: replied 1 year ago.
Ok. Thank you
Expert:  TonyTax replied 1 year ago.
The bare minimum requirement for your earnings not to be taxable in the UK after a period abroad is that you complete at least one full tax year, 6 April to 5 April, as a non-UK resident. In your case, that tax year started on 6 April 2015 and ends on 5 April 2016. You could return to the UK on 6 April 2016.A period of 31 consecutive days in the Uk will jeoardise your claim to be non-UK resident and, therefore, your UK tax free status on foreign earnings. See paragraphs 1.7 to 1.10 (pages 10 and 11 of RDR3) here and paragraph 3.20 (page 40 of RDR3) here. If you don't maintain your non-UK residence status until 6 April 2016, split year treatment won't apply and you be liable for UK on your foreign earnings for the whole time that you were abroad.I hope this helps but let me know if you have any further questions.
Expert:  TonyTax replied 1 year ago.
You would be entitled to the personal allowance to use against income taxable in the UK.
Customer: replied 1 year ago.
Ok. Thankyou. I have just a couple more questions...
1. If I am to leave the country again and return before the end of the tax year and take up employment in the UK. How many hours per day am I allowed to work?
2. If I do maintain my non-resident status, by not being in the country for more than 31 consecutive days, do I have to present my working contract to HMRC?
3. In the case of non residency - how could I utilise split year treatment?
3. Do I register my earnings and non resident status for the last year with HMRC on the 5 April 2016?
Customer: replied 1 year ago.
Finally, could you explain 'personal allowance to use against income taxable in the UK'?Thanks in advance, you have been a great help.
Expert:  TonyTax replied 1 year ago.
1 You cannot return permanently to the UK before 6 April 2016 without having to pay UK tax on all your foreign earnings since November 2014 so the question is academic.2 Only if you are asked for it.3 Split year treatment allows you to divide the tax year in two so if you returned to the UK on 30 June 2016, for example, you would not pay UK tax on your foreign earnings from 6 April 2016 to 30 June 2016 provided you met the qualifying criteria for SYT. You would be resident in the UK for tax purposes in 2016/17 but SYT would exempt your foreign earnings in that year. See the notes and flowchart here:http://www.litrg.org.uk/tax-guides/migrants-and-tax/residence-and-domicile/what-split-year-treatmenthttp://www.shipleys.com/files/Split-Years-Flowchart---Arrivers.pdf4 You should have completed a P85 before you left the UK. You could still do that. Otherwise, HMRC may ask you to complete a tax return when you return to the UK once you appear on their radar again, eg by taking a UK job.The personal allowance is the amount of atx free income you can have in a tax year. For 2015/16, it is £10,600.
Customer: replied 1 year ago.
OK thank you very much.
Finally, I am still allowed to be in the country for 91 days overall in the tax year as long as I am not here for 31 consecutive days?
Customer: replied 1 year ago.
When you say 'You could return to the UK on 6 April 2016', you mean return to employment? I could feasibly be here before if within the 91 days.
Expert:  TonyTax replied 1 year ago.
It should be less than 91 days per tax year.
Expert:  TonyTax replied 1 year ago.
What I'm saying is that if end your job abroad and return to the UK before 6 April 2016, you will lose the tax free status of all your foreign earnings so taking and starting a job in the UK before 6 April 2016 would be costly.
Expert:  TonyTax replied 1 year ago.
You have to complete a full tax year, 6 April 2015 to 5 April 2016, as a non-UK resident individual to keep your foreign earnings from being taxed in the UK.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15850
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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