Becoming Non Resident in the UK

[thehiker99]

Versyelli

First of all I should clearly state I am not a tax accountant, nor do I work in any way in that industry.
I'm simply someone who's been working overseas for more than 20 years, and have made the arcane, rules and regulations ,concerning tax on expatriates , a sort of hobby.
I made a lot of mistakes with HMRC when I started, and it cost me dearly, I simply want to try and help people avoid the pitfalls I fell into.
I would strongly suggest you visit with a good accountant, who specialises in expat tax.
Having said the above.....

I refer you back to my first response.
There are two basic ways to lose UK tax residency:- "really" move abroad, or work abroad full time.
Do it for one complete tax year from 6th to 5th April.
Limit your visits to the UK to less than 91 days a year.

Since you seem not to have left the UK until the 8th of April, you would have to remain either resident abroad, or working abroad, till Apr 2013.
I THINK, and I'm not sure, in Apr 2013, you will gain non residence from the 8th (or possibly the 9th) of April 2011.

If you remain in the UK now, because you "missed the boat" this year, so to say, and start on April 6th 2012, then when Apr 2013 comes round you will be classed as non resident from April 2012.
ie I know you've missed the boat this year, and will have to complete nearly 2 years abroad, but if you do, you're non residence status will start from April 2011.
IF you stay in the UK, this year we are in, and start the whole process in April 2012, then when 2013 comes round, you will be deemed non res from April 2012. ie you've lost a year of non res status.

In answer to your last two questions, you have to complete a whole tax year EITHER as a resident SOMEWHERE else outside the UK, (or in full time employment) outside the UK. You could come home for 90 days in that first year.
Get yourself that residency in IOM or Channel islands, or Ireland, that you alluded to.(or wherever it is)

This is one the mistakes I made when I started. I didn't get good advice BEFORE I started. If you'd known how important the 6th of April was I'm sure you could have left on that day.

Finally. Keep all boarding passes, tickets, credit card, ATM slips etc, when using cards outside the UK. You may have to prove where you've been, and how you got there. Remember HMRC does NOT have to prove anything, in terms of your movements, when referring to the famous 91 days.


See a good tax accountant.
Try expattax.co.uk I've heard they are good. (bar talk)

Le Randoneur quatre vingt dix neuf.

[ensigntaxation]

Hi Versyelli,

I think a lot of what has been said above makes sense. However, I'm not entirely sure that you do need to be resident in another jurisdiction to be working full-time overseas. As I remember the rules say you need to have a contract (employment / self employment) with a foreign entity and you need to stay below the day counting.

Clearly, it depends on the facts of your case and I don't really get much of an idea what you do overseas and whether something feasible could be worked up.

Hope this helps.

Cheers
Andy

[thehiker99]

Ensigntaxation

You are absolutely correct sir, if you are in full time overseas employment, it is not necessary to aquire residence in another country.
I would venture to suggest that there can be no harm in doing so, but it is not necessary.

Regards

The Hiker.