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Where Taxpayers and Advisers Meet

UK tax on foreign earnings for temporarily non-residents

john87
Posts:1
Joined:Mon Apr 07, 2014 9:19 pm
UK tax on foreign earnings for temporarily non-residents

Postby john87 » Mon Apr 07, 2014 9:38 pm

In October 2012 I moved to the Middle East. Although I kept my house, wife and children in the UK (for schooling reasons), I had a good job abroad with a 3-year contract. My employer gave me use of a house and a local residency permit. I intended to stay for the full 3 years, and so I submitted a P85, an in-year SA form for 2012-13, and declared myself non-resident, which HMRC accepted.

While I was earning money abroad, I used to send money back to the UK regularly, and it was my understanding that as I was non-resident, I did not have to pay any tax on it.

Due to an unexpected and sudden legal problem at work, I was forced to return to the UK in December 2013, pending resolution of the legal problem. I am still officially employed in that country, I still have the local residency permit and the keys to my house which still contains my possessions. I was intending to return there once the legal matter was satisfactorily resolved, and my employer has accepted that.

My salary was stopped on my departure, so in the meantime I commenced freelance work in the UK on a self-employed basis. In the 2013-2014 tax year I have been in the UK for 135 days, and I have worked here on 53 days. I have untaxed income from the freelance work, and I intend to pay the tax through self-assessment.

However, due to circumstances beyond my control, I have not been non-resident for a complete April-to-April tax year. So my query is this... - do I have to pay tax on my foreign income which was earned and remitted between October 2012 - December 2013?

Many thanks for sharing your experience and insight into my problem.

nikkisizer
Posts:342
Joined:Fri Nov 04, 2011 5:26 pm
Contact:

Re: UK tax on foreign earnings for temporarily non-residents

Postby nikkisizer » Mon May 19, 2014 7:35 am

Hello john87,

As you will be classed as UK resident for tax purposes you will be liable for tax on your overseas earnings.

Happy to help so if you need any further assistance please do not hesitate to contact me.
Kind regards,

Nikki Sizer

Sizer & Co Accountants
nikki@sizeraccountants.com
[url]http://www.sizeraccountants.com[/url]

Birmingham - London - Manchester - Leeds


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