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Where Taxpayers and Advisers Meet

Tax on foreign income being sent back to the UK

c4h1ll
Posts: 1
Joined: Tue Dec 01, 2015 11:45 am

Tax on foreign income being sent back to the UK

Postby c4h1ll » Tue Dec 01, 2015 11:48 am

Hi,

I am about to move abroad to Dubai and am confused about the tax implications on money I earn whilst over there.

I do not know how long I will be there. It could be 5 years, 10 years etc. but at some point I will come back to the UK. From what I understand this means that I will still be domiciled in the UK. Is this correct?

I want to send money I earn out there back to the UK on a monthly basis. Will I be taxed on this? Is there a limit I can send back each year?

I've heard about registering to be non resident for tax purposes. Could you explain this to me as well as any pros or cons it may entail? When I return to the UK I will then have to unregister, how does this effect any tax I may need to pay?

I currently own a property in the UK. Will this effect anything taxwise for me whilst I am out there?

Many thanks,

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

Re: Tax on foreign income being sent back to the UK

Postby nikkisizer » Wed Dec 02, 2015 9:53 am

Hi c4h1ll,

Your individual circumstances would need to be looked at in more detail.

Residency is a complex area and the existing HMRC UK residency rules changed significantly with effect from the 2013/14 tax year which now involves the statutory residence test (SRT).

Ties such as home, work, family etc. in the UK may class you as UK resident for tax purposes regardless of where you reside.

If classed as UK resident you would then be taxed on your worldwide income so it is very important that your tax affairs are dealt with correctly to protect your residency status and exposure to UK taxation.

In the first instance you will need to submit form P85 to HMRC unless you have completed or are required to complete a self assessment tax return for the tax year that you leave.

Happy to help if required so if you need any further assistance please do not hesitate to contact me or feel free to pop in and see me on SZR :)
Kind regards,

Nikki Sizer

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

Birmingham - London - Manchester - Leeds

maths
Posts: 7641
Joined: Wed Aug 06, 2008 3:25 pm

Re: Tax on foreign income being sent back to the UK

Postby maths » Wed Dec 02, 2015 3:11 pm

If you leave the UK to work full-time overseas then you will almost certainly become non-resdent in the UK.

If so, your overseas earnings will not be subject to UK income tax.

You can remit back to the UK as much as you want. No further UK tax will apply.

Your domicile status will not change due to simply working overseas.

There is no formal registering of residence/non-residence status. This gets included when you complete a Tax Return when you leave.

Owning a UK property has no tax consequences per se; if you rent it out any rents will be subject to UK income tax.


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