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Sam, Accountant
Category: Tax
Satisfied Customers: 14195
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I work abroad in oil n gas and the company I work for is based

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I work abroad in oil n gas and the company I work for is based in Dubai. I can be sent anywhere in the world apart from UK. My company pays for me to travel home in my time off. I have a wife and 2 children that stay living in the UK. I spend about 120 days in the UK but I could get that down with holidays. as it stands I have just done nothing about tax but it's worrying me! I've tryd to find out online what I should be doing but I can not find my any one with my circumstances to compare!
work abroad full time
the company is not a UK company
I travel back to the UK about 120 days a year
I want to know will the taxman ever find out if I just carry on regardless?
should I even be paying tax??
if so on what basis?
how will the taxman know if I'm in the UK or not?
how will the taxman even know that I earn this money abroad??
Thanks for your question
I am Sam and I am one of the UK tax experts here on Just Answer.
As you have been spending more than 90 days in the UK each year then you will retain a residency for UK tax purposes, and should get in touch with HMRC regarding this employment abroad, as you should have paid UK tax on this foreign income, and be completing a self assessment tax return for HMRC.
Ideally you would have completed form P85 (Leaving the UK) when this employment had first begun, so that HMRC could advise you of your residency status for UK tax purposes and also arrange for a tax return to be issued to you each year.
If (and I suspect not) you have suffered any deductions of tax then this can be offset against any UK tax liability arising.
The best way to take this forward is to get in touch with HMRC and advise them of the position, so they can arrange to set you up within self assessment and issue the relevant tax returns.
HMRC will expect you to keep evidence of your comings and goings, whether by virtue of stamps in your passport, flight tickets etc so that if asked for, you can produce evidence of the true amount of time you have spent in the UK.
HMRC have tax treaties with many countries and whilst this does include the UAE, almost ALL counties work together with matters such as taxation, so you are best coming forward to make a full disclosure rather than HMRC pick up on this fact later on, because if HMRC come to you over this matter, penalties will apply along with tax owed, and interest.
And for me to advise otherwise, would mean I was not undertaking my job properly, which I am sure you can appreciate.
If from now on in, you spend less than 90 days a year in the UK (which runs from 6th April to the following 5th April each year) then you will be treated as NOT RESIDENT and not liable to UK tax, but will still have to complete a self assessment for HMRC each year detailing your earnings (and any tax suffered0 and the days you spent in the UK.
Let me know if you have any follow up questions
Sam and other Tax Specialists are ready to help you