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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13863
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have paid tax everywhere I work as an expat in Malaysia

Resolved Question:

I have paid tax everywhere I work as an expat in Malaysia since 2009. But having now gone to a tax adviser, identified areas where maybe I paid too much, but also areas where I paid less... As a non resident for many years, the 2013 changes have caused confusion to me and many. I don't want to invade tax, but I don't want too pay too much... What is the best way to stay in line with obligations. I don't mind paying, but I here the government try and take more than due... Highly confused..
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question - as this the UK tax forum and you have been not resident in the UK, then can I ask what obligations you feel you may not have met - and what confuses you re the 2013 changes ?

Also HMRC do not ever take more than is due - but unless you had income that arose in the UK during this time - then the UK would not be involved in your tax situation at all

Thanks

Sam

Customer: replied 11 months ago.
Hi Sam,1. With 2013 requirements, there are ties back to the UK i.e. I have 3 houses in the UK, one is rented out and I pay tax on it, one is new and no one has lived in it, this is for investment and the third is my house that has my UK belongings in it and is more of an investment come, holiday home.
2. I inadvertently spent more than 91 days in the UK, but less than 180 after my time overseas that my be a mistake and hence maybe I would have been better claiming a split year - no income earned in the UK that year, just overseas.3. This year I am concerned that although I am earning my salary overseas in a tax free country, if I return even after being away for more than 180 days, I will become liable for that income, hence I will have to stay overseas for the whole tax year to avoid this.
Expert:  Sam replied 11 months ago.

Hi

Thanks for your response

The ties (sufficient ties test) only come into play IF the 90 day presence threshold has been breached and you indicate that it has not and that you remained as not resident.

But then you advsie that you have a home with all your UK possessions in it, so perhaps you have never been not resident even prior to the 2013 additional legislation this was still a factor in determining whether you both LIVED AND WORKED out of the UK

And you also advise that you spent more than 91 days in the UK - so which years did this apply yo as you may have been resident throughout and liable to UK tax.

SO I ask

1) Are you a British citizen

2) when did you leave the UK in 2009 and from that date to 05/04/2010 how many days did you visit back in the UK and did your personal possessions stay here - did you work a shift pattern so many days in the UK and then so many out -

3) From 06/04/2010 and for each tax year - how many days did you spend in the UK

4) Was all your time in the UK spent in the property that holds your possessions

5) have you worked the same contract abroad from 2009 to date - or has there been change of employments or contracts - when did each of these changes take place and did you return back to the UK between each change of contract or employment

You cannot claim a split year - this can only ever apply on the year of departure from the UK and the year of return -

IT seems your affairs are not as clear cut as you would have believed and it may be this is something the tax adviser (whose advsie you sought) has already identified this - and this would be when the ties test (when visits back to the UK exceed 91 days) have been breached.

So lets see where we are with a quick review of each year for you

Thanks

Sam

Customer: replied 11 months ago.
Hi Sam,1) Yes
2) With regard to my years 2009 to 2014 (KPMG did my tax returns as I was employed by the same company with no work in the UK and I returned very little).
3) Off top of my head, I do not recall - but KPMG addressed this so should be fine.
4) My time was not all spent in the property I have my possessions in.
5) I had the same contract up until the end of tax year April 2014, I then returned to UK to visit friends and relatives before heading back overseas approx. May 2014 to commence new full time employment, which ended before expectations in January 2015 - I did some work after that , but returned to UK in March 2015 and hence for 2015 to 2016 my time spent in the UK classes me, in my assessment as resident, leaving again in January 2016 to commence full-time overseas employment in the Middle East.So in summary it is really 2014 / 2015 that is a challenge.Regards,Bryn
Expert:  Sam replied 11 months ago.

Hi

Thanks for your response

Assuming KPMG were accurate is their residency position for you (which as you had rental income still arising in the UK - then I can see that HMRC would also have agreed) Your main issue is from April 2014

When you arrived back in the UK in April 2014 when the contract ceased you would have then been treated as resident from that moment - now with you hearing back out then a continuation of being out of the UK for more than a full tax year needed to have been met - but this has not, as you advsie the contract finished early in Jan 2015 and you arrived back in the UK in March 2015 so for 2014/2015 you are going to be treated as resident anyway

Then we have the 2015/2016 tax year and you will be treated as resident from 06/04/2015 to Jan 2016 - and the time from Jan 2016 o 05/04/2016 can only be treated as not resident if

1) this new contract is to last beyond 05/04/2017

2) your visits back to the UK from Jan 2016 - are no more than (approx) 16 days for 2015/2015 and no more than 91 days for 2016/2017

If not than you will still be treated as not resident for the whole of 2015/2016 and 2016/2017 unless we can bring the sufficient ties test into play.

But as you advise that HMRC have assessed you as resident for 2015/2016 then I assume you did not meet any of the allowable considerations for non residency -so , may I ask what is you are needing from me ? Is this just to seek clarification?

Thanks

Sam

Sam and other Tax Specialists are ready to help you
Customer: replied 11 months ago.
Hi Sam,Thank you.This is complex so I will look at engaging an accountant and tax advisor to look into how I address future work overseas.Thank you.Regards,Bryn
Expert:  Sam replied 11 months ago.

Hi Bryn

OI think thats wise because as things stand you were resident for 2014/2015 and 2015/2016 (which cannot be chnaged) but may be able to turn things around for this year 2016/2017

Thanks

Sam

Customer: replied 11 months ago.
By the way ... How do I pay for advice.
Customer: replied 11 months ago.
how good are you with Gibraltor knowledge ..
Expert:  Sam replied 11 months ago.

Hi

Thanks for your further question - if UK tax related then you can ask new question (new post) ir I can send an additional services request with furtehr Q & A time or a telephone call but re Gibraltar tax , we are only UK tax experts here on Just Answer so whilst we have the ability to interpret the legislation, we are by no means experts in that field, but do have a full understanding on any tax treaties between the UK and them and any double taxation in place.

Let me know if I can assist further

Thanks

Sam

Customer: replied 11 months ago.
Ok... So if I am working am living in Gibraltor , is that classed as the UK, so will not count against my allowable 90days in UK My view no ... But with. Your experience I am sure you will have the answer ... Thanks...
Expert:  Sam replied 11 months ago.

Hi

Thanks for your further question - being in Gibraltar is not considered as being in the UK so does NOT take up your 90 days allowance for UK residency purposes

Thanks

Sam

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