working abroad and being non domicile

[Exige77]

What are the rules about this ? If I work and pay tax abbroad can I bring that taxed income back to UK when I return ? What about if my family decide to stay in UK. Can I send them the already taxed money while I am away ? How long must I be outside teh country to be non domiciled ? How to prove it ?

Thanks

Ex77

[stefd]

Non-domicile and non-residents are two different things. A non-dom can still live in this country but originates or has parents from another country.

Sounds like you're going to be non-resident:

http://www.hmrc.gov.uk/CNR/faqs_general.htm

[flyingjase]

OK, so in laymans terms, how to you become non resident for tax purposes?

Your link says

Q3. In what circumstances would I become non-resident?
A3. Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if

your absence and employment from the UK covers a complete tax year (i.e. 6 April to
5 April), and
you spend less than 183 days in the UK during the tax year, and
your visits to the UK do not average 91 days or more a tax year over a maximum of 4 years.

Does this mean that you have to be in the UK for less than 274 (183 + 91) days in total per year? or 183 days??

Clear as mud

[Eric Mc]

It's not starightforward (what is in UK tax).

If you remain outside the UK for a complete tax year i.e. from before 5 April to after the following 5 April, you will have been Non-Resident for that tax year. Therefore, you will not be liable to UK tax on the earnings you made in that particular tax year.

During that tax year, you are allowed to return to the UK for short periods (holidays, family visits etc) without losing your non-UK Tax Resident status.

The 91 days bit covers these occasional trips back to the UK.

If you come back to the UK to stay PART WAY through the tax year but the remaining number of days left in the tax year is under 183 days, you will not suffer UK tax on the amount you earned abroad in the preceding 182 days.

[flyingjase]

Thanks Eric - that makes sense

I always thought (obviously wrongly) that as long as you spent less than 183 days in the ccountry then you could be non resident. In fact from what you are saying it's 91 days.

[Exige77]

Thanks Guys. What about the money earned and taxed overseas. Can you brinmg it back to the UK tax free when you return to live in UK ?

Thanks

Ex77

[Eric Mc]

Exige77 said:

Thanks Guys. What about the money earned and taxed overseas. Can you brinmg it back to the UK tax free when you return to live in UK ?

Thanks

Ex77

Usually, yes.

Once it is in the UK and lodged in a UK bank account somewhere, any interest it generates will be subject to UK tax, of course.