Non-Resident to Resident and Non-Domicile

[renee2012]

Hi

I hope you can help with my situation. I have been a non-resident living and working abroad for over 3 years in a country where there is no income tax. Last year after April I took a role that meant I worked in 3 different countries, most of the time in the UK. I have to date exceeded the 183 day threshold for one year in the UK. From which point do I start paying the tax as a resident in the UK? From the point at which I exceeded the 183 day threshold to become a resident or for the whole tax year from last April?

Also, I am paid by a foreign company into a foreign account. I am thinking of claiming non-domicile status as I do not really consider the UK my home anymore and I don't bring much money into the UK. I was born in a foreign country and my parents are not from the UK either, though they reside here now.

If I consider the above then as a non-dom can I only pay tax on the income I bring into the UK and limit my income here as I have debts abroad that I need to service?

Your advice is appreciated.


Renee

[maths]

This is quite a complex area.

However, as you were in the UK for 183 days (even if it was not your intention to establish residency in the UK) you will be treated as resident for the purposes of ascertaining your liability to income tax on your employment income. However, assuming you did not become ordinarily resident in the UK, UK tax on your non-UK earnings only arises if remitted to the UK (this applies irrespective of your domicile status).

If you have significant other types of non-UK income then it may be necessary to formally claim remittance treatment (which assumes you are non-UK domiciled).

A double tax agreement may be relevant.