Returning to UK from Working in Middle East


Returning to UK from Working in Middle East

Postby martinc on Mon Feb 07, 2011 6:11 pm

Hi,

I am currently working in Qatar and my be looking to move back to the UK but need to clarify the tax I may incur if any.

I left the UK on 10th July 2010, filled all the necessary forms out and sent to the Inland Revenue and they quite kindly gave me a tax rebate from my income from beginning of April 2010. As a result am I able to return to the UK as from this April (2011) without being hit the Inland Revenue pretty hard? If not what level of tax will I have to pay and also how do they know how much I earn't here as I am paid in local currency by an Arabic company into a local bank account in Qatar?

Any help is greatly appreciated.

Regards

Martin
martinc
 
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Joined: Mon Feb 07, 2011 6:03 pm

Re: Returning to UK from Working in Middle East

Postby etf on Tue Feb 08, 2011 10:38 am

Hi Martinc,

As the Revenue issued a PAYE tax refund for 2010/11 you presumably completed a P85 departure form indicating that you expected to remain in full-time employment overseas until at least 5 April 2012. The refund arose in 2010/11 as the Revenue expected you to be regarded as not resident and not ordinarily resident with effect from 11 July 2010 which would have taken your overseas earnings out of a UK tax charge. On this basis the Revenue carried back the unused portion of your 2010/11 personal allowance and perhaps 20% tax band against your UK earnings which provided you with your tax refund.

Your plans appear to have changed as you are now considering returning to the UK without having been absent for a complete UK tax year (6 April to following 5 April). If your proposed early return materialises you will not break residence in the UK and will remain liable to UK tax in 2010/11 on your total worldwide income including your earnings in Qatar. From a UK tax efficiency angle, you should if possible continue working in Qatar until at least 5 April 2012 to avoid an unwelcome UK tax bill.

I have copied a link to the Revenue's website which details UK tax rates.

http://www.hmrc.gov.uk/rates/it.htm

The Revenue will probably not have access to your end of year P60/P11D information, but will expect you to report this information to them.

Where my clients go and work overseas in a tax-free environment, I suggest that they maintain a UK tax fund from their overseas earnings to cover the UK tax charge that can arise if they unexpectedly return to the UK without having been absent for a complete UK tax year.

I hope this helps.

etf

http:theexpatriatetaxfactory.com
etf
 
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Re: Returning to UK from Working in Middle East

Postby martinc on Wed Feb 09, 2011 4:59 am

Thanks for your reply. I will have to reconsider my plans then.

The UK is a great place to live and work isn't it who really encourages its nationals to return to the Great Island that is the United Kingdom!!
martinc
 
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Joined: Mon Feb 07, 2011 6:03 pm

Re: Returning to UK from Working in Middle East

Postby thefassolutions on Thu Feb 10, 2011 2:39 pm

Hi,

My name is Bryan Nelson, I'm in jeddah right now and I'll be returning to uk as well probably in mid of this year after spending 5 years. I want to find out, what do i've to do to update my tax details online. Is there any online resource available ?

Thanks

Bryan
http://www.thefas-solutions.com
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Re: Returning to UK from Working in Middle East

Postby Peter D on Thu Feb 10, 2011 4:27 pm

Form P86 and working notes may give you a pointer. You really need to start your own thread to avoid confusion. Regards Peter
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Re: Returning to UK from Working in Middle East

Postby etf on Fri Feb 11, 2011 4:19 pm

Peter,the following statement was included in an agent update in 2010:

"From 1 June 2010 individuals no longer need to complete form P86 Arrival
in the UK".

The following link may be a good starting point for Bryan

http://www.hmrc.gov.uk/incometax/tax-arrive-uk.htm

Kind Regards

etf

http://theexpatriatetaxfactory.com
etf
 
Posts: 275
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