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Sam
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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Sam me again! ok so thanks very much response

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Hi Sam
me again!
ok so thanks very much for your response
so as I understand as long as I can prove that I am in the country for less than 90 days a year I do not need to pay UK tax?
are there exceptions to this rule? that will be very easy for me to do however if there are exceptions then I have a some questions to ask around what would be tax deductable if they decided I had to pay UK tax - i.e the usual tax deductable stuff in the UK can I use my Egyptian bills i.e internet
are fligths tax deductable in my case?
also regarding the not related to work aspect - does training for my own personal development count as work related purposes? for example I am training in something called meta health this year in the UK
also if I am still registered as paying council tax in my name (so I can vote and all my bills are inclusive will I still be able to not pay UK tax or do I need to take myself of this?
many thanks!

Hi

Thanks for your furthewr questions and asking for me

Yes, as long as you are in the UK for less than 91 days (so no more than 90!) then you will not be liable to tax on the employment nut will always be considerd for tax on the rental income (as it arise in the UK and remains a UK source of income) but you will have your personal allwoances to offset agaist the rents

There are no exceptions to that rule (although if you had to stay for longer due to ill health - then HMRC are willing to disreagrd those days and a day is counted as each midnight that is spent in the UK

And this is due to the fact that you still are registered for the counsil tax and bills so are acting as still a resident in the UK ... so yes it would be better for you to come off all bills and as a voter - but is this feasible with any ongoing medical care you might need ....

You can claim all associated costs with the rental income - such as the interest element of any mortgage repayment, buildings insurance, council tax, the bills etc etc but with your employment then you only need to declare this (and any associated expenses IF you spend more than 90 day in the UK)

Flights back to the Uk - only if they are for the sole purpose of attending to a matter to do with the property.

The associated costs would be internet costs (to reflect the % of the bill arising due to this work) and also a % of electricity but I do no imgaine you incur any other costs.

This training is unlikely - but perhaps you could advise more about this as I would have expected the employer to pay for the cost of this training as you are their employee.

Thanks

Sam

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Customer: replied 3 years ago.

ok brilliant thanks for that -

so I can claim the cost for the flight I just took in order to re rent my flat as my tenant moved out and take this off my deductible expenses re regarding my personal allowance yes?

ok re the council tax I am a little confused

And this is due to the fact that you still are registered for the counsil tax and bills so are acting as still a resident in the UK ... so yes it would be better for you to come off all bills and as a voter - but is this feasible with any ongoing medical care you might need ....

I am confused as to why it would be better to come off the council tax does this mean I am still acting as a resident in the uk regardless of whether I spend less than 90 days in the country - and would have to pay uk tax or is it still only if I have spent more than 90 days?

or can I remain on the council tax list pay council tax all bills in my name and still not pay tax if I spend less than 90 days in the country? or does that automatically make me a tax paying uk resident?

and yes you are quite correct though not due to a need for medical treatment for my chronic illness but at some point in the next year I will prob have a minor opp basically having immature eggs replanted which are stored in a freezer in Scotland and were removed prior to a bone marrow transplant some over 20 years ago - so this could not happen elsewhere!

now re the training - it could be either -my boss is a trainer in a few types of therapeutic training which I get for free as part of my contract or it could be training I pay for myself which is unrelated to my job basically because it interests me.

Sam thank you!

Hi Lucy

yes the cost of the flight to re-rent the flat would be acceptable - but

would state that should you then stay for a few extra days - to visit friends and family- then reflect this in the cost of the flight you claim = as this would be a resonable thing to do, even if your visit was primarily just to re-rent the property out!

Re the council tax, the fact you wish to keep your voting rights and still are named on all bills on the property will cause HMRC concern - necause although you have rented the property out so do not have access to stay here when you come to the UK, you havent severed ties - and that is a factor that HMRC now look at long with the time spent in the UK, so just giving the heads up - that it wouldbe wise to let the tenants cover the appropritate costs.

However - you then go onto advise re your minor op situation - and all I can advsie is make sure that you do in due course (maybe after the attempted egg IVFtreatments) just get things all neat and tidy with your rental of the proeprty - but this advsie not an absolute position that you have to address

Any training that is due your own interest is not an allowable expense you can claim - this cost has to be borne by you, but any training that you have to do as part of your job, that the employer does not cover the cost of - is allowable - but as already advsied one would expect the employer to then cover the cost for you.

Basicially anything that leads to a new skill is not allowable, retraining or extendd exisiting training, otr that which is certificated and has to be reassesed annually is allowable.

Thanks

Sam

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Customer: replied 3 years ago.

ok so just to be totally clear - by renting my flat inclusive - which I basically just did yesterday! (in big part also due to peace of mind that all bills are taken care of) could run me the risk of having to pay UK tax on my salary even if I stay in the country less than 90 days yes? however they may let me off with it?

ok so as my salary and rental income combined takes me over the personal allowance threshold I then need to hang on to anything that I can claim back tax on ( I am clear on the flat rental expenditure and it is great I can claim for a % of this last flight - I am staying so long this time as I have to get painters in to paint my flat when my tenant leaves at the end of the month)

so I can also claim back on expenditure such as a % of high speed internet installed in Egypt in order to do my on line job or cost of equipment being fixed in Egypt for example or electricity bills due to working from home - even though the bills will come from Egypt and be in Arabic?

Sam many thanks

I think that's it - I think I carry on all inclusive for this year and then maybe think again next year - if I have to pay tax I have to pay tax - fortunately it won't be IVF just a minor morning thing and out and basically they would do it in Edinburgh regardless of my resident status as they have been storing this stuff for years for me and I was the first woman in the world to have her immature eggs stored prior to a bone marrow transplant - no idea why I shared that with you!

anyway you have been a great help and also very clear and easy to communicate with

Hi Lucy

Its not so much that renting it out inclusively is a risk to you losing the right to be treated as not resident, itt the fact that this ALONG with the position IF you spent more than 90 days in the UK would see you treated as resident in the UK, and under the stautory residence rules you have two ties to the UK - employment and the property (which is rented out BUT you pay all the bills and are registered as living at the property for council and voting rights) so only if you exceed the 90 days in the UK - will this become an issue.

But you have the expenses position spot on with what you can claim for

So to recap

!) You spend less than 90 days in the UK during the tax year - then you declare both the rental income and employment with each of their associated expenses - and as you will also complete a residence page - then you will only be considerd for

UK tax on any rental income in excess of the £10,000 tax free personal allowances

2) You spend more than 90 days in the UK - then you will be treated as resident and still declare all the incomes from the rental income and employment and their associated expenses - and will still complete a residency page - but then WILL be considerd for UK tax on ALL income - with the first £10,000 tax free as personal allowances.

I feel humbled that you have shared your situation with me - and I wish you all the best with your eggs - and what an amazing claim - to have been the first to have immature eggs stored - I know it is a claim I am sure you wish you didnt have the title to - as I can only imagine the diffcult journey you have endured for that even to have been a considered option, but medical advancements never cease to amaze me and you being a part of something that has since given hope to many girls and the prospect of motherhood, something many of us others are fortunate enough to have taken for granted -

Sam :)

I am

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Customer: replied 3 years ago.

ok brilliant - it will be easy for me not spend more than 90 days in the UK as my decision to do that is generally about a cheaper flight and it will no longer be a cheaper flight if I have to pay tax then I am in the clear yah!! - though actually whilst I did pay tax for many years I have also been very well looked after in this country as a consequence of our tax system something I will always be grateful for, so I do think the whole tax system is a good thing

and yes it was incredible it was totally right place at right time as a documentary was being filmed on some experiments they were doing with sheep in Edinburgh where by the sheeps immature eggs were re implanted and they went onto have lambs! They basically thought of me for the human element to the documentary - so now full circle and actually I am very lucky as during my 30's due to the drugs I was on I was not able to get pregnant now finally drug free at 41 I have what every woman wants in a freezer in Edinburgh - eggs from my 18 year old self! and yes a number of woman went on to have babies after also doing this post chemo and bone marrow transplant which is brilliant

anyway Sam thank you so much for your invaluable advice and patience in answering my questions - this is a brilliant service I will definitley use again

with very best wishes

Lucy

Hi Lucy

Thats just wondereful to hear - snd thank you for sharing it with me

Take care

Sam

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