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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13917
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Assistant: Thank you. Can you provide any more details to help us find you the right Expert?
Customer: I would like to submit a question to Sam in the Tax expert area, how do I do this?
Submitted: 12 months ago.
Category: Tax
Customer: replied 12 months ago.
I would like the option of non urgent (take as long as you need) but most detailed please
Customer: replied 12 months ago.
Hi SamI require some advice on Tax. I will try and explain everything I can as best as possible, if you need any more information please dont hesitate to get back to me and I will happily supply any neccessary information. so...Upto Nov 2014:- I was taking a UK PAYE Salary from my fathers company (simply because he is my father and is paying me a maintenance). I dont do a great deal of work for him, help out here and there etc etc
- I have 2 houses on rentTax returns upto and including 2014/2015 reflect the above situation i.e. rental propertiesFrom Dec 2014 onwards:- I continue taking a UK PAYE Salary from my fathers company (simply because he is my father and is paying me a maintenance). I dont do a great deal of work for him, help out here and there etc etc
- I continue having 2 houses on rent
- I take a job in the middle east (UAE) and literally up and leave over nightPoints of interest:- I did not fill out a P85 (I think thats whats it called), I just left in a hurry for the sun and never looked backed! I did not know how long I was going for.
- Any money I have earnt in the middle still to this date has not been transferred back to the UK or anywhere else, it has remained in the UAE. I use it for living purposes in the UAE
- The UAE work might last until Dec 2016, if it does, I still dont plan on going back to the UK until atleast Jun 2017
- For tax year 2014/2015, I did not declare this UAE income, because I didnt bring it back to the UK and didnt think I needed to and I didnt know how to! but I'm not sure where I stand here and whether I have done wrong
- For tax year 2014/2015 I clearly spent more than 90 days in the UK, as I didnt leave until Dec 2014
- For tax year 2015/2016 I did not spend more than 90 days in the UK
- For tax year 2016/2017 I do not intend to spend more than 90 days in the UK
- For tax year 2017/2018 I will probably be back to the UK and continue with what I was doing Upto Nov 2014 outlined above.
- I have no idea whether I am non UK domicile or UK domicile, and whether it even matters for me. I was born in the UK, my parents have lived and continue to live in the UK for 40 odd years. They where not born in the UK. We are all british citizens.
- The HMRC SRT document confuses me and worries meIn terms of questions, I'm actually not sure what I want to ask, so you may need to ask me questions inorder to get clarification on what I want to know, but I will try!1. Have I or am I doing anything wrong in the eyes of HMRC?
2. If I wanted to bring the money I have saved up in the UAE back to the UK when I plan to go back (Jun 2017) i.e. simply transfer it to my UK bank account:
- Can I just go ahead and do this?
- What are the tax implications on it and how would I declare it?
- If its deemed taxable (I thought working in the middle east was tax free), are there ways to minimise this?
3. I need to submit my return 2015/2016 soon, and I dont know what to do, are you able to help?
4. I would like if possible, for this question and answer not to be visible on any website including this one
Expert:  bigduckontax replied 12 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Firstly complete a P85 and submit it to HMRC immediately. Fortunately there is no time limit as to its submission, it is available on the web and can be filed on line. On receipt HMRC will classify you as non resident and furthermore split the leaving year into two portions, one resident and the other non resident. The P85 makes provision for the refund of any overpaid tax in the leaving year to be repaid. This may help sort out your PAYE position. Once classified as non resident you may spend up to 91 days in the UK in any one tax year without breaching your status. When you finally return to the UK you should advise HMRC of your return and the split year procedure as already advised will be reversed for the year of return.

The houses you rent out in the UK should have the net rentals declared to HMRC at the end of each tax year by means of a self assessment tax return. This is the only income you will need to declare on your 15/16 return. As a citizen of the EEA you are entitled to the usual personal allowance, currently 11K.

Any moneys earned in the UAE are outside the scope of UK taxation once you are registered as non resident, whether or not you remit same to an UK bank account. If the transfer is substantial warn the incoming bank of the source to preclude and money laundering inquiries a large transfer might attract.

I think I have covered everything. Please follow up on this thread if there is anything you do not understand. Don't forget the P85, you will find dealing with HMRC so much easier if you do.

Customer: replied 12 months ago.
HiCustomerThanks for the response. .. I really wanted to Sam to respond and I did ask the website chat to do this. .. looks like it didn't work. .. let me find out what happened before releasing payment. I will pay even if it means I have to pay Sam again for an answer.
Expert:  bigduckontax replied 12 months ago.

Sam obviously did not pick up on this question. She would only have 15 minutes so to do before it is thrown open to all experts. It may be that she is not on line at all at present. I have noticed that there seem to be very few of us about recently! It must be the holiday season.

Customer: replied 12 months ago.
It's very strange because the person I spoke to on the site sent me to a payment page implying Sam would get the question. I'm new to the site so assumed once submitted it would go directly to her after deposit.I also mentioned there was no rush in a response but I needed a detailed response. .. which should have resulted in a lower charge
. ..
Let me see if I can get to the bottom of this.
Expert:  bigduckontax replied 12 months ago.

No problem, as far as I am concerned it came in open forum.

Expert:  Sam replied 11 months ago.

HI

I am online and the question was taken before I was able to reply - so I do apologise for this - but one of the moderators has sent me a message advising that you would prefer me to assist with this.

So lets look at the situation and answer your questions

1. Have I or am I doing anything wrong in the eyes of HMRC?

No not at all other than you should have continued to complete self assessment tax returns just to declare any money that your father may have continued to pay you and of course the rental income - so you do need to file/amend 2014/2015 to show you leaving the UK and of course the 2015/2106 tax returns
2. If I wanted to bring the money I have saved up in the UAE back to the UK when I plan to go back (Jun 2017) i.e. simply transfer it to my UK bank account:
- Can I just go ahead and do this?
- What are the tax implications on it and how would I declare it?
- If its deemed taxable (I thought working in the middle east was tax free), are there ways to minimise this?

When you left the UK, as it was for more than a full tax year - and your visits for the time since you left were less than 90 days per tax year (this is not to include the year you depart or the tax year you return which are treated as split years anyway - so do not affect consideration for you being non resident for this time ) then you are treated as NOT liable to UK on overseas income - but do remin liable to tax on the UK income (which is why I advise above the need to have continued to complete self assessment tax returns which you would also then have completed a residency page too so HMRC could see that you met the requirements to have this overseas income as free from UK tax)
3. I need to submit my return 2015/2016 soon, and I dont know what to do, are you able to help? I can - but we would best be doing this perhaps through a telephone call OR I can try and assist through this Q and A (just list this as anew question and ask for me - and again eventually it will be refered to me to assist you)
4. I would like if possible, for this question and answer not to be visible on any website including this one

I am afraid that is impossible as if a potential customer was looking for a similar answer, a part of this thread could come up in a search engine BUT - which is why in due course a phone call might be ideal for is to process this furtehr for you - but your identity is kept secure - of that I can assure you.

So I propose this - as you initially posted this question earlier today and its now 9pm at night (UK time) and I am heading to bed as an early start in the morning - lets try and see if we can get online at the same time and I can then offer you a telephone call if you would like (or just reply back and I will continue to try and fully assist through an exchange of Q & A

Take care

Sam

Customer: replied 11 months ago.
Hi Sam,Thank you for the detailed response to each question, this is exactly why I was requesting you from the start... unfortunately I was not aware how to contact you directly, which is why when the webchat initially helped me and took me to the deposit page, I mentioned my question needs to go to you, and there is no rush in a response, I think we got there in the end. I would really like to take you up on the offer of talking this over on the phone but at present I am travelling alot and dont have regular internet access. I assume I would have to talk to you over the internet, and cannot call you directly in the UK?I just want to go over a few points in the your answers and clarify I have understood them correctly, if it is okay with you:1. "you should have continued to complete self assessment tax returns just to declare any money that your father may have continued to pay you and of course the rental income - so you do need to file/amend 2014/2015 to show you leaving the UK and of course the 2015/2106 tax returns"so just to clarify:- My fathers UK company continues to pay me a PAYE salary since I have been in the UAE. My fathers company will continue paying me a salary simply becuase he wants to give me a monthly maintenance even though I do very little work for him. Does this in itself do anything regarding the SRT and automatically classifying me as UK resident? Maybe through having a sufficient tie back to the UK?- My 2014/2015 return (and previous years) show my rental income and any tax due on them so I'm hoping this is correct and again doesnt bring my any sufficient ties to my UAE salary being UK taxable?- I've taken your response as meaning my Self Assessment tax return should also declare the money my fathers company pays me. How do I this? I thought because its PAYE there is no need to mention on the Self Assessment as I am payrolled on his company, just like any other employee of his is, and the salary is taxed at source.- Can I amend an already submitted tax return i.e. 2014/2015?2. "(which is why I advise above the need to have continued to complete self assessment tax returns which you would also then have completed a residency page too so HMRC could see that you met the requirements to have this overseas income as free from UK tax)"So just to clarify:- Self Assesment returns have continued to be filed since I left in Dec 2014. They have not and will not stop, as I need to declare my rental income and tax due on them regardless, correct?- Can I retrospectively go back now and amend 2014/2015 Self Assessment to complete the Residency Page without penalty? At the time of submitting 2014/2015 tax return I had no idea I was going to be out of the UK for a full tax year. So if I am able to go back and amend the 2014/2015 tax return Residency page, I am effectively qualifying I have now been out of the UK for over a full tax year and the UAE salary is not liable to UK tax?3. "I can - but we would best be doing this perhaps through a telephone call OR I can try and assist through this Q and A"Yes I agree, if I can only speak to you over the internet this will be difficult at present. If I can contact you on a UK number then it makes me it alot easier for me. Hence just to keep the ball rolling I would like to exhaust this thread first and let you guide me into researching the right areas as well so I can ask you some intelligent questions and make the best use of your years of knowledge.4. Do you have as good knowledge in the IHT field, for future reference? As thats my next task after this question is closed out and out to bed.I appreciare your time and efforts towards my question
Expert:  Sam replied 11 months ago.

Hi

Thanks for your response

You did the right thing and most experts would leave the question for me - but Just Answer has a 15 minute rule, that if the expert requested is not available then other experts can see if they can assist instead, but its you, the customers prerogative to decline and await your chosen expert.

You can call me - it would involve me providing you with a telephone request - although I am sure you cab appreciate we would need to agree a mutual time - but lets see if we can manage your clarifications here

You advise

- My fathers UK company continues to pay me a PAYE salary since I have been in the UAE. My fathers company will continue paying me a salary simply becuase he wants to give me a monthly maintenance even though I do very little work for him. Does this in itself do anything regarding the SRT and automatically classifying me as UK resident? Maybe through having a sufficient tie back to the UK?

HMRC would NOT treat this allowance but a salary and as it is paid from the UK and NOT connected with your work abroad - it would be far better if your father had simply paid you an allowance from his personal bank account to yours - as just an allowance, but as it comes via his company as a PAYE salary - the fact you are abroad could render is free from UK tax, on the basis that maybe none of your "duties" (as scant as they are) are conducted in the UK - but this income would need to be declared on the self assessment tax return .

This creates one tie as does the ownership of the property - which merely then looks at how many days you could have spent in the UK before being treated as NOT RESIDENT for UK tax purposes - which then links in with whether you are liable to UK tax on worldwide income. BUT as you spent less than 90 days in the UK none of which are for work purposes then the income earned from the UAE can NOT have a UK consideration (and you need not declare this) and your entitlement to UK personal allowance 0 if you are a UK citizen or are of birthright from one of the countries we have a double taxation agreement with (or part of the EEA) will render you still eligible for UK personal allowances, which can be offset against the UK Rental income

You then ask

I've taken your response as meaning my Self Assessment tax return should also declare the money my fathers company pays me. How do I this? I thought because its PAYE there is no need to mention on the Self Assessment as I am payrolled on his company, just like any other employee of his is, and the salary is taxed at source

Self assessment is all about total declaration of income - so whilst your PAYE salary may well be taxed at source, so you would declare the PAYE salary and the UK rental income as these remain as ARISING in the UK, its only due to your NON RESIDENCY that the foreign income you earn abroad, whilst living abroad that need not be declared in the UK as it is rendered as NOT liable to UK tax.

You then ask

Can I amend an already submitted tax return i.e. 2014/2015?

And the answer is yes you can and you should

2) You then ask

Can I retrospectively go back now and amend 2014/2015 Self Assessment to complete the Residency Page without penalty? At the time of submitting 2014/2015 tax return I had no idea I was going to be out of the UK for a full tax year. So if I am able to go back and amend the 2014/2015 tax return Residency page, I am effectively qualifying I have now been out of the UK for over a full tax year and the UAE salary is not liable to UK tax?

Yes you can however the omission of the PAYE salary which Oslo needs amending (to include) may create a penalty charge - as this should have been declared BUT HMRC should render this free from UK tax if none of the duties (however scant) were performed in the UK

And yes you are right the UAE salary should NOT be liable to UK tax as mentioned above.

3) If you feel a chat would still be useful - we can perhaps arrange something when we are both available - so let me know if this would suit you (there would be an additional charge I am afraid as per Just Answer policy, but I could give you my number and you could call me directly

40 Yes I have a good knowledge of Inheritance Tax for future reference but some of this may need financial advsie alog with it for which I am NOT an expert in and additional advsie would be needed for this element of it.

Have a good weekend, let me know if you need anything else. If you have all that you need however, then it would be appreciated if you could rate me for the level of service I have provided (or click accept)

Thanks

Sam

You then ask

Sam, Accountant
Category: Tax
Satisfied Customers: 13917
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you
Customer: replied 11 months ago.
Hi SamThank you for the level of detail. .. amazing! This is why I was requesting you after reading the answers you have provided to others. ... I would like a phone call at some point but not sure when this would be possible. As I have had a couple of emails requesting a rating I will do that now. I'm guessing I can request a phone call linked to this Q&A at some point later?
Expert:  Sam replied 11 months ago.

HI

Thanks for your response

When you wish for a phone call - let me know (then we can ensure we are both online and that the request is made from me - or if you request it then any expert can and will pick up the request) and yes you can request this later if you still need it through this Q & A thread - just send a response

Thanks

Sam

Customer: replied 11 months ago.
How can I contact you directly without any one else picking up my query? Do you have your own page that I can request your time from?
Expert:  Sam replied 11 months ago.

Hi

You just come via this thread after rating it (or clicking accept) OR start a new thread as a question and answer - ask for me and as before, if another expert answers, then just advsie them you would prefer to wait for me. We can then take any phone call you may still wish to have forward from there

Thanks

Sam

Customer: replied 11 months ago.
Okay perfect. .. now I've rated you how do I pay you for your time?
Expert:  Sam replied 11 months ago.

Hi

You have done so by rating the level of service I have provided (of which I get some from the initial deposit you made) so thank you!

Sam

Expert:  bigduckontax replied 11 months ago.

Post to clear my question list.