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Where Taxpayers and Advisers Meet

Moving home from Dubai

bobbarrow1
Posts:1
Joined:Mon Nov 03, 2008 12:56 pm
Moving home from Dubai

Postby bobbarrow1 » Mon Nov 03, 2008 1:09 pm

Good afternoon, I am currently working in Dubai but am not enjoying the ex pat life and I am planning to return home to the UK. I need to get some tax advice, before I finalise my exit strategy from Dubai.
In brief, I quit my UK job in Jan 08 and flew to Dubai to accept a new job on 10th Feb 08. I then returned to the the UK on 13th Feb and then returned to Dubai on 29th April, where I have remained since (apart from a couple of fleeting visits of a couple of days to visit family in the UK).
It is only now I am looking to return that I have found out that I should have completed a form to advise the UK tax authorities that I was leaving and, according to my friend, I now have to pay tax on all of my earnings.
The bottom line is that there is no way I can afford to pay taxes on my earnings. Dubai might sound like a tax free paradise but the cost of living more than makes up for not paying tax and I have been unable to save much of my income and cannot pay taxes on my earnings.
As previously stated, I hate being away from the UK and want to return. Can someone please advise as to how I can best return to the UK, without being obligated to paying tax on the money I have earned whilst working abroad?
Ideally, I would like to speak to someone direct at a tax specialist so that they can clear this up professionally for me, as I clearly haven't got the first idea how to resolve this.
Please post contact details and I will contact you asap.

Many thanks,

Bob.

JSK TAXATION
Posts:200
Joined:Wed Aug 06, 2008 2:18 pm

Re: Moving home from Dubai

Postby JSK TAXATION » Mon Nov 03, 2008 3:28 pm

Bob,

Give me a call if you wish to discuss this. My number is 01732 897850.

John
John S King
Chartered Tax Adviser
e: help@taxation-advice.com
w: http://www.taxation-advice.com
01732 897850

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Moving home from Dubai

Postby maths » Mon Nov 03, 2008 3:58 pm

Assuming you are UK domiciled (basically, English) and have always resided in the UK then you will be liable to UK income tax on your Dubai earnings.

This is because you never lost your UK residency even whilst working in Dubai.

Typically, to avoid UK income tax you would need to be working full time outside the UK for at least one complete UK tax year. Whether by remaining in Dubai working and only returning to the UK post 5th April 2009 would avoid the UK tax charge would involve a closer look at your specific facts. This is I suspect your only option.

The failure to complete Form P85 ion leaving the UK is irrelevant to the issue.


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