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bigduckontax
bigduckontax, Accountant
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I have been working in the Middle East from 1st September

Resolved Question:

Hi,
I have been working in the Middle East from 1st September 2013 to 20th June 2016. I was unfairly dismissed and received 6 months pay-off. After my dismissal I have been staying abroad, but returned to the UK on the 5th of September due to the death of my father and have been here ever since. I am still registered as a non-resident. I am looking for work abroad at the moment, and there is a good chance I will move abroad again in November or December.
I am unsure if I have to pay tax on any foreign income for this tax year. Is dismissal payment taxable however? How many days am I allowed to stay in the UK for to keep non resident status, or do I have to keep out the country?. The only reason I have returned to the UK is because of the bereavement.
Ideally I would like to keep my non resident status and return to work abroad.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

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

When you left these shores for the Middle east did you submit a Form P85 to HMRC?

Customer: replied 1 year ago.
I submitted the form. I also received payment of monies due before my return to UK
Expert:  bigduckontax replied 1 year ago.

Once registered as non resident you can spend up to 91 days in the UK in any one tax year without breaching your status. The 91 days can be averaged out over four years so that should cover your UK stay if you go back overseas.

On return the split year principle applies, part non resident and part resident if you were returning full time. You are not taxable on your Middle East income including the pay off moneys.

I do hope that you have found my reply of assistance.

Customer: replied 1 year ago.
Hi, sorry can you expand on the "average" of 91 days. For the previous years, I was probably only in the UK for 10-14 days per tax year. How can I check my residence status with the tax office?
Expert:  bigduckontax replied 1 year ago.

You do not need to. Having submitted a P85 you are classified as non resident. If you were in the UK for say 15 days in each earlier tax year then you have 91 - 15 = 76 days slack to cover those above the 91 for the stay involving your Father's demise.

Customer: replied 1 year ago.
Ok thank you . Last part - I have been offered some consultancy work from an Irish based company. This is mostly work I can do online. What do I have to do regarding Tax here , residency status ?
Expert:  bigduckontax replied 1 year ago.

Make sure you are not paid until you are out of the country again would be my advice! Remember you still have your personal allowance of 11K to offset any UK earnings.

Please be so kind as to rate me before you leave the just Answer site.

Customer: replied 1 year ago.
What happens if I am paid before ? I have not done so and I can deter payment
Expert:  bigduckontax replied 1 year ago.

Well it would be liable to UK income Tax, but don't forget the personal allowance.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.

Thank you for your support.