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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4937
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have been living and employed in the UK for last 10 years

Customer Question

Hi
I have been living and employed in the UK for last 10 years but am now thinking of taking a new job abroad. If my new employment contract becomes with a non UK based entity, I will be based abroad (in Lebanon) but traveling regularly to the UK, my wife and kids live in the UK, question is will I still be subject to UK tax?
Thank you
Submitted: 9 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 9 months ago.

Thank you for your question..

Please advise if your new job would require you to be away full time for over a tax year or would you be working in the UK too?

How many days are you likely to spend in the UK?

many thanks

Customer: replied 9 months ago.
I would working from the UK on average 1 week per month so roughly spending 10-15 days per month in the UK. My wife and kids plan to stay living in the UK so I will be travelling back and forth. To clarify, my employment contract will not be a UK contract but a Lebanon-based contract. Please let me know if you require more info. Thank you
Expert:  taxadvisor.uk replied 9 months ago.

Thank you for your reply..

As you are likely to spend between 120-180 days in the UK although your employment contract is Lebanon based, you will be regarded as UK resident for tax purposes. You also have UK ties (you have a family and property in the UK). You will not meet any of the automatic overeseas test as mentioned on page 9 and onwards of RDR3 here

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/458559/RDR3_govuk_hyperlink__updated_078500.pdf

Your earnings would be chargeable to UK income tax and you would be able to claim foreign tax credit relief for any tax suffered on these earnings in Lebanon.

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 9 months ago.
Thank you for that. If I can manage to limit my time in the UK to 120 days, will that make any difference to not be considered UK taxable?
Expert:  taxadvisor.uk replied 9 months ago.

Thank you for your reply..

Limiting your days spent in the UK to 120 days would not make any difference.

You may wish to read the section Sufficient ties Test on page 3 of 4 here.

I hope this is helpful.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4937
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 9 months ago.
thank you
Expert:  taxadvisor.uk replied 9 months ago.

I thank you for accepting my answer.

best wishes

Customer: replied 8 months ago.
Hi there, it's me again. I have a follow up question on the same topic, if I lay out my analysis of the various UK and overseas tests can you provide your thoughts please?
Expert:  taxadvisor.uk replied 8 months ago.

Thank you for your reply.

I will do my best..

Many thanks

Customer: replied 8 months ago.
Understood, thank you.
Please see below my current assessment but would welcome your comments and feedback if you agree or disagree.To recap my situation: I have been living in the UK since April 2006 and working for the same firm since then until April 2016 (10 years) when I was made redundant and lost my job. Since then I have not earned any income in the UK. I set up my own consultancy practice as a one man band (i.e. Only registered the company with companies house) but did not earn any clients or fees yet. Now that I received an employment offer to join a company based in Lebanon, I am leaving the UK to be based in Lebanon but my wife and kids will stay in the UK until July 2017 (when school year ends) and will then relocate to Lebanon with me. Slight change of plan since we last discussed this, I will not be working any days in the UK (might have a meeting once a month here but otherwise I will be entirely based abroad and will earn my salary abroad). My visits to the UK will be limited to two trips a month for 2-3 days each so a total of 40-50 days between now and end of the current tax year). But important to note that since April 2016 tax year I spent around 100 days in the UK (however unemployed basis).I went through the various tests in detail and here is a summary of what I found.1) I do not meet any of the Automatic UK tests
2) Automatic Overseas test does not apply as I spend more than 16 days in the UK
3) Sufficient Ties test:
- Family tie applies as my family is living in the UK until July 2017
- Accommodation tie applies as I own a property in the UK
- Work tie does NOT apply as I won't be spending more than 40 days in the UK
- 90 day tie applies as I have been working in the UK for last 10 years until April 2016
- Country ties does NOT apply as I will be spending most days/nights outside the UK over 2016/17 tax yearBased on the above, I have three (3) ties to the UK so I can spend a maximum of 45 days in the UK in a tax year.Key question then becomes if I was unemployed since April 2016, do the days I spent in the UK looking for a job count towards the calculation of the days for these tests? Or is there a way I can say that I can limit my days in the UK to 45 only if the 100 or so days I was unemployed but spent in the UK do not count?Thanks for your help.
Expert:  taxadvisor.uk replied 8 months ago.

Thank you for your detailed presentation..

100 days spent in the UK count as you were physically in the country whether in employment or unemployed.

I hope this is helpful.

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