Do I qualify for UK non-residency?

[salem]

Hello all.

1. company A (foriegn company) start date: 21st April 2010 - End date: 27 July 2010
2. Company B (British Company) start Date: 27 Aug 2010 - End date: 31 Aug 2011

I left the UK on 21st April 2010 to work for a company A as a self employed contractor. The contract I signed was initially for 12 months and with a possible 6 months extension. While I was working for company A I found another job in the same country offered by a British company who offered better pay etc. So I applied from abroard, got accepted. Returned to UK in late july 2010 for an interview. Then travelled to the US for some required training for this new job and finnaly returned to work end of August 2010 to start self employment contractor job for company B. Worked for company B from 27th Aug 2010 and ended Aug 31st 2011. i have now fully returned to live in the UK.

During Tax year 2010/11 I have spent a total of 71 days in the UK.

I am confused about the issues of non-residency for tax purpose. Do I qualify or not. since my original intentions were to work for Company A for about 18 months.

Any help or comments are highly appreciated. Thanks.

S.

[etf]

Hi Salem,

To become not resident and not ordinarily resident for UK tax purposes your absence must include the golden 12 month period from 6 April to the following 5 April (i.e. a full UK tax year). With an original departure date of 21 April 2010, this would necessitate you working full-time overseas until at least 5 April 2012 i.e. for nearly 24 months. It therefore appears that you will remain resident in the UK and liable to pay UK tax on your overseas income.

If you decide to work overseas again, it is far easier to break residence if you leave the UK just before the end of a UK tax year e.g. 4 April as this will only require an absence of just over 12 months to potentially become non-resident (as opposed to nearly 24 months as detailed above). It is also important to ensure there are no gaps in your self employment so that one job flows on immediately from another.

etf

http://theexpatriatetaxfactory.com