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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I'm moving back to the UK from Germany in December. I have

Resolved Question:

I'm moving back to the UK from Germany in December. I have been in Germany for 2 1/2 years. I have just started a company in the UK and this is the reason I am moving back.
Obviously, I have spent a little over half of 16/17 tax year in Germany. But looking at some things online it appears I can probably do a Split Year? Just looking to find out what I need to do when I arrive back in December to make sure I qualify for this and so I just pay UK tax?
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 1 year ago.

Take a look at the spreadsheet here in conjunction with the notes in section 5, cases 4 to 8, here. So long as you meet one or more of those cases criteria you will qualify for split year treatment.

There isn't much you need to do other then qualify as resident in the UK for 2016/17 and 2017/18 and as non-UK resident for 2015/16. Between 6 April 2016 and the end of December, you cannot spend more than 67 days in the UK. See Table F on page 66 of RDR3 or you risk having to pay UK tax on your German earnings.

I hope this helps but let me know if you have any further questions.

Customer: replied 1 year ago.
Hi Tony,Do follow up questions cost more money? If so please don't answer.So I think I will be case 8 as I will still be renting my place in Germany until I can stop that. I won't have been in the UK for 67 days before December. If I start renting a room in the UK from December until April, then into the next tax year. I should automatically qualify for the Split Tax system? How many days do I have to be in the UK (from Dec to Apr) to qualify? As I will also be traveling around to a few visit a few differents clients.Thanks
Expert:  TonyTax replied 1 year ago.

Follow up questions on the same topic don't incur any extra cost.

You will qualify under Case 5 as well if you meet the third automatic UK test over 365 days starting on your first day back in the UK. See paragraph 1.36. There isn't a specific number of days but, ideally, you should be looking to spend more nights in the UK than in Germany.

Customer: replied 1 year ago.
Ok good to know. I think in that period I may or may not be able to do Case 5 (I don't know yet). I should also state that I am the Director of the company in the UK if that makes any difference to any of this?
Also, how are days in the UK tracked? As I expect to be in the UK, Germany, Holland and possibly the Middle East between December and April. What tracks where I am and when? As I know I will be moving around a fair bit, but want to make it clear I will be a UK resident again. Thanks
Expert:  TonyTax replied 1 year ago.

Being a director makes no difference really but it cannot harm you. You need to keep a record of where you are at midnight if you are outside the UK. HMRC aren't going to tell you aren't UK tax resident as that would be like turkeys voting for Christmas.

Customer: replied 1 year ago.
Thanks Tony.So I will be in the UK for a few days at the end of Oct to plan my move back to the UK more. Do I need to 2 different accountants/tax advisors to manage my business and personal accounts? What kind of person should I be looking for? Is this something you have expertise in, the situation I have outlined.Thanks
Expert:  TonyTax replied 1 year ago.

I have dealt with many clients who have either left the UK or returned to the UK or both. Sadly, I cannot take on clients through this site.

You don't need two accountants/tax advisers as far as UK tax is concerned. You may need someone to finalise your German tax position.

Customer: replied 1 year ago.
Ok thanks! Is there any way you can recommend anyone or this that also against the rules?
Expert:  TonyTax replied 1 year ago.

I'm not allowed to make recommendations I'm afraid.

I'd start by doing a search on Google in the area that you intend to live in the UK. Most firms will give you a free meeting to discuss your requirements so you can shop around. However, as with anything, you get what you pay for.

TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thanks