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bigduckontax
bigduckontax, Accountant
Category: Tax
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I have a UK tax related question I work overseas (Middle

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JA: Hello. How can I help?
Customer: I have a UK tax related question I work overseas (Middle East) have been for 2 years. I'm from the U.K and I'm looking at coming back to the U.K sometime next month. I have some money in a bank account and I want to get it back to my U.K bank account. Will this money be taxed?
JA: Have you talked to a tax professional about this?
Customer: Is this something that I can have help with?
JA: Anything else you want the Accountant to know before I connect you?
Customer: not really unless they have questions

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

When you moved to the Middle East did you send a Form P85 to your tax office?

Customer: replied 1 year ago.
Hi. No, I've heard of one or seen one
Customer: replied 1 year ago.
I was under the impression that with me not residing in the U.K and only visiting no more than 90 days over the 24 month period that the income earned overseas was exempt to the U.K tax law. Obviously, interest rates that I gain on the money will be taxable just like any other U.K resident which is fine. I'm trying to understand whether the money will be liable to tax if I transfer it back before I come back next month.
Customer: replied 1 year ago.
Sorry, I missed the word 'never' out of the first response above.

You are correct in your assumption, but that only works after a P85 action. You should submit a P85 at once advising of your original departure date from the UK. Fortunately, there is no time limit on its submission, it is available on the web and can be filed on line. On receipt HMRC will classify you as non resident. On return to the UK advise your tax office by letter and you will be classified as resident for the tax year following your date of return and the returning tax year will be split into two halves, one non resident, the other resident. The money earned whilst a non resident is outside the scope of UK taxation.

Customer: replied 1 year ago.
I'd still need to complete one even if the company I worked for overseas was not U.K based and never had any offices in the U.K?

You most certainly do otherwise some twerp in HMRC will try to tax you on your Middle East earnings.

Customer: replied 1 year ago.
How do they know I have money from overseas if the money sits in an account that doesn't generate interest?
Customer: replied 1 year ago.
I'll download the form from the U.K gov website and complete. Can this be completed when I'm back in the U.K as my P45 is in the U.K?

I would advise you to complete and submit it as soon an possible. It could avoid endless trouble with the tax authorities.

Customer: replied 1 year ago.
Thank you for the advice, really appreciate your time.

Delighted to have been of assistance.

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