New expat rules coming into force for the UK
Discussion
You guys seen this?
http://www.pistonheads.com/gassing/topic.asp?h=0&a... 90 Day Rule? Nope, you're Fecked!
http://www.pistonheads.com/gassing/topic.asp?h=0&a... 90 Day Rule? Nope, you're Fecked!
Think this is targetted more at people who flirt with the offshore status. Basically they're saying if there is tangible evidence that the UK is in fact your main residence then it won't be so easy to get away with it any more.
My tax advisor said that renting the UK house out, having a full time employment contract and being paid local currency into a local bank proves I am in fact non-resident.
My tax advisor said that renting the UK house out, having a full time employment contract and being paid local currency into a local bank proves I am in fact non-resident.
Bit concerned about this. I have a home in the UK that I do not rent out. I also have a UK bank account (used for payment the mortgage on my house and other bills). However I am employed on a full time basis on a local contract, I am paid in local currency into a local bank account. I do tend to spend my holidays in the UK and visited for around 25 days last year. I completed all the necessary forms before I left and sent these to HMRC. I have been living outside the UK since June 2008.
Hmmm this looks concerning, but I do think it is targetted at those who try and work the system to their benefit rather than good, honest working folk like us...ahem.
I am employed by a UK company and paid in GBP into a Dubai bank. However have no house in the UK at all.
Interestingly(?) I was contacted by HMRC last week to tell me that instead of an NT tax code I would be handed a 374L tax code from April 1st 2010. A quick phone call and they confirmed that was an error and they will change back to NT.
To be on the safe side I will contact my FA and see what she has to say. I'll let you guys know the results.
I am employed by a UK company and paid in GBP into a Dubai bank. However have no house in the UK at all.
Interestingly(?) I was contacted by HMRC last week to tell me that instead of an NT tax code I would be handed a 374L tax code from April 1st 2010. A quick phone call and they confirmed that was an error and they will change back to NT.
To be on the safe side I will contact my FA and see what she has to say. I'll let you guys know the results.
That would be useful. There was a bit about it in the Sunday Times the other week but it seems my cleaner has binned it.
When I first read it I really did think that the writing was on the wall, the US and the Oz governments are leading the way in closing the expat tax benefit allowances and I thought that the good old British taxman had also wisened up.
Seemed to indicate towards the end though that if you have a full time contract stating that you are based in a foreign land then they won't really be interested, even less so the number of financial commitments and ties you have such as school fees, residential mortgages, other employments, incomes and directorships etc..
I have a good friend who's a self proclaimed tax geek and she'll give me the low-down - and also the neccessary mitigating factors.
Will post up her reply.
When I first read it I really did think that the writing was on the wall, the US and the Oz governments are leading the way in closing the expat tax benefit allowances and I thought that the good old British taxman had also wisened up.
Seemed to indicate towards the end though that if you have a full time contract stating that you are based in a foreign land then they won't really be interested, even less so the number of financial commitments and ties you have such as school fees, residential mortgages, other employments, incomes and directorships etc..
I have a good friend who's a self proclaimed tax geek and she'll give me the low-down - and also the neccessary mitigating factors.
Will post up her reply.
Edited by Hitch78 on Wednesday 10th March 06:16
OK, I am really, really thick when it comes to stuff like this but I am living and working in Libya, have a contract and residents visa. My tax is paid by my company (thats about as much as I know about the tax situation, have asked but its like getting blood from a stone).
I have a house in the UK - in my name but the mortgage is paid by another memeber of the family and its rented out.
I have a UK bank account as non-citizens CANNOT have a bank account over here - I get x ammount in LYD for living allowences, rest is going into my UK account.
I get 30 days holiday (this includes weekends BTW) per year, to go back to the UK.
Will this affect me..?
Cheers
Claire
I have a house in the UK - in my name but the mortgage is paid by another memeber of the family and its rented out.
I have a UK bank account as non-citizens CANNOT have a bank account over here - I get x ammount in LYD for living allowences, rest is going into my UK account.
I get 30 days holiday (this includes weekends BTW) per year, to go back to the UK.
Will this affect me..?
Cheers
Claire
Edited by Gaffer on Wednesday 10th March 06:17
I think you'll be ok as you are in perm employment and have a visa.
More importantly, you're probably due a payout from some British tax payer funded European Expats in Difficult Foreign Countries Human Rights slush fund for the fact that your holidays are so woefully bad - I'd write to your MP if I was you!
More importantly, you're probably due a payout from some British tax payer funded European Expats in Difficult Foreign Countries Human Rights slush fund for the fact that your holidays are so woefully bad - I'd write to your MP if I was you!
Edited by Hitch78 on Wednesday 10th March 06:25
Hitch78 said:
I think you'll be ok as you are in perm employment and have a visa.
More importantly, you're probably due a payout from some British tax payer funded European Expats in Difficult Foreign Countries Human Rights slush fund for the fact that your holidays are so woefully bad - I'd write to your MP if I was you!
Ahh thanks for that More importantly, you're probably due a payout from some British tax payer funded European Expats in Difficult Foreign Countries Human Rights slush fund for the fact that your holidays are so woefully bad - I'd write to your MP if I was you!
to be honest I have no reason to go back to the UK apart from to see Candy, Daisy a couple of mates and my Mum. Other than them...not arsed in the slightest. Being in posession of a multi exit visa and Malta only 45 mins away means I can pop out at weekends if I want.TBH as long as it keeps me out of the UK, I will put up with *almost* anything. Plus with what's happening at the moment with the good Colonel...its all fun and games
Claire
Just got a reply from my FA as follows. Seems like we will be OK. Although long term I can see Britain going the way of Oz/USA. This situation has been discussed as long as I have been here (6 years) and a few years ago this was even specifically mentioned in newspapers as the UAE government are aware that part of the attraction of working here is the tax fee status. Their plan at the time was to introduce minimal local tax and then enter in a Double Tax Agreement with the UK, therefore removing the need to pay UK tax.
Not sure what would happen if the UK did introduce expat tax, there certainly would be some free and frank exchange of views between me and my company. Of course it depends if it goes down the 'merican route or more likely (I expect) a more Eurocentric approach, which to my mind would be that you would only pay UK tax if you were working in a non-Euro country or a country without DTA.
''It would appear that if you are working abroad full time on a contract and do not exceed the 90 day rule per year you will still secure non residency status even if you have a house and family here in the UK.
I was very unsure myself as various articles were published in recent months but only made the position very hazy. However a recent case in The Telegraph confirmed that a guy who had large estates both in the UK and the Bahamas (I think) who was claiming non residency failed to secure non UK residency status (even though he did not exceed the 90 day rule) simply because he was not working abroad full time. This seems to be the key. Then an article in Taxation magazine confirmed this point.
You and your colleagues presumably all work full time abroad so, on the basis of the above recent developments you should all be OK.''
Not sure what would happen if the UK did introduce expat tax, there certainly would be some free and frank exchange of views between me and my company. Of course it depends if it goes down the 'merican route or more likely (I expect) a more Eurocentric approach, which to my mind would be that you would only pay UK tax if you were working in a non-Euro country or a country without DTA.
''It would appear that if you are working abroad full time on a contract and do not exceed the 90 day rule per year you will still secure non residency status even if you have a house and family here in the UK.
I was very unsure myself as various articles were published in recent months but only made the position very hazy. However a recent case in The Telegraph confirmed that a guy who had large estates both in the UK and the Bahamas (I think) who was claiming non residency failed to secure non UK residency status (even though he did not exceed the 90 day rule) simply because he was not working abroad full time. This seems to be the key. Then an article in Taxation magazine confirmed this point.
You and your colleagues presumably all work full time abroad so, on the basis of the above recent developments you should all be OK.''
I guess a lot of it comes down to being reasonable - from what little I read this guy was really pushing his luck.
HMRC do seem fairly reasonable to me with regards to expats, things like split year treatment are not required legally but are granted. They seem fairly chaotic in my dealings, but generally helpful and knowledgeable. Now, if only they'd hurry up and refund me!!
HMRC do seem fairly reasonable to me with regards to expats, things like split year treatment are not required legally but are granted. They seem fairly chaotic in my dealings, but generally helpful and knowledgeable. Now, if only they'd hurry up and refund me!!
Hitch78 said:
DubaiJohn said:
tax geek said "Then an article in Taxation magazine confirmed this point."
Zzzzzzzzzz......What I love about tax issues is that people giving advice only ever use words like appears, should and probably!
Edited by Hitch78 on Wednesday 10th March 14:26
Whilst we're on the subject, do you have to tell the tasx people you've moved??!! I'm in Dubai for the time being, and when I leave I'll be living un NZ, and have zero intentions of ever living in the UK again.
Do I need to tell them that? I've always been a PAYE kinda guy, so not sure.
Cheers.
Do I need to tell them that? I've always been a PAYE kinda guy, so not sure.
Cheers.
Mattt said:
You can fill in a form when you elave the UK PXX (can't remember the number) but that's just for dealing with the current tax year I believe.
Register yourself for self-assessment, if you have UK assets - if not ignore them I guess.
It's a P85 form....and I don't think ignoring them is a good idea, tempting as it is! I think they will expect you to submit tax returns still for a few years before letting you off...!Register yourself for self-assessment, if you have UK assets - if not ignore them I guess.
Gassing Station | Middle East | Top of Page | What's New | My Stuff