Living abroad, bringing money back to UK - tax implication
Discussion
Eric Mc said:
Luckilly for you, you will probably have re-established your UK residence by tax year 2017/18 and you will be able to resolve your tax liabilities (if any) using the Self Assessment system.
Unfortunately, Self Assessment is being abolished on 6 April 2018 and for tax year 2018/19 on your situation would have to be resolved using the new Making Tax Digital system which I am sure will be far less straightforward in circumstances like yours.
Not necessarily Eric, coming back is simple. Prior to returning as far as HMRC is concerned you don't exist, there was no income, you owe them nothing, they owe you nothing. Leaving may be more difficult I'd concede! Unfortunately, Self Assessment is being abolished on 6 April 2018 and for tax year 2018/19 on your situation would have to be resolved using the new Making Tax Digital system which I am sure will be far less straightforward in circumstances like yours.
The simple answer is we don't know yet. All taxpayers i.e. 45 million people, will be given a new Digital Tax Account - irrespective as to whether they have been submitting or would have been required to submit Self Assessment tax returns.
When a person returns to the UK they will more than likely need to contact HMRC fairly quickly so that their Digital Tax Account is set up (or re-instated if they are former UK taxpayers who have been out of the country for a number of years).
HMRC are being very coy about how liable to fines and penalties ordinary taxpayers will be if they don't monitor and update their Digital Tax Account in a timely fashion.
When a person returns to the UK they will more than likely need to contact HMRC fairly quickly so that their Digital Tax Account is set up (or re-instated if they are former UK taxpayers who have been out of the country for a number of years).
HMRC are being very coy about how liable to fines and penalties ordinary taxpayers will be if they don't monitor and update their Digital Tax Account in a timely fashion.
Eric Mc said:
The simple answer is we don't know yet. All taxpayers i.e. 45 million people, will be given a new Digital Tax Account - irrespective as to whether they have been submitting or would have been required to submit Self Assessment tax returns.
When a person returns to the UK they will more than likely need to contact HMRC fairly quickly so that their Digital Tax Account is set up (or re-instated if they are former UK taxpayers who have been out of the country for a number of years).
HMRC are being very coy about how liable to fines and penalties ordinary taxpayers will be if they don't monitor and update their Digital Tax Account in a timely fashion.
It's going to be a total clusterfWhen a person returns to the UK they will more than likely need to contact HMRC fairly quickly so that their Digital Tax Account is set up (or re-instated if they are former UK taxpayers who have been out of the country for a number of years).
HMRC are being very coy about how liable to fines and penalties ordinary taxpayers will be if they don't monitor and update their Digital Tax Account in a timely fashion.
k isn't it!! What are they thinking. Mezger said:
Holy Thread Resurrection, we may, potentially, be doing the opposite, i.e. returning to Blighty after 4.5 years away.
I will (of course) seek proper tax advice, but directionally, does anyone know if your foreign earnings are liable for UK tax if you come back midway through the UK tax year?
For example, if we were to return in October this year, are we liable to pay any UK tax on money earned abroad (wages and investments) between April 6th 2017 and when we return in October 2017?
I am in exactly the same situation - other responses on here seem to suggest that this shouldn't be an issue, which is great news. I will (of course) seek proper tax advice, but directionally, does anyone know if your foreign earnings are liable for UK tax if you come back midway through the UK tax year?
For example, if we were to return in October this year, are we liable to pay any UK tax on money earned abroad (wages and investments) between April 6th 2017 and when we return in October 2017?
Does anyone know if end of service gratuity and transferring lump sum (of wages saved while in Dubai) to U.K. bank account prior to returning as a resident would also be tax free or are there different rules for larger deposits?
Maxter said:
Does anyone know if end of service gratuity and transferring lump sum (of wages saved while in Dubai) to U.K. bank account prior to returning as a resident would also be tax free or are there different rules for larger deposits?
Your earnings as a non-resident which would cover savings & gratuity remain free from HMRC clutches.GT03ROB said:
Your earnings as a non-resident which would cover savings & gratuity remain free from HMRC clutches.
Great! Thanks. Any idea why other colleagues returning to the UK this summer were so keen to be paid gratuity before end of March? Is it just that this makes the whole thing simpler than requesting split year treatment (which I presume I will have to do)?Maxter said:
GT03ROB said:
Your earnings as a non-resident which would cover savings & gratuity remain free from HMRC clutches.
Great! Thanks. Any idea why other colleagues returning to the UK this summer were so keen to be paid gratuity before end of March? Is it just that this makes the whole thing simpler than requesting split year treatment (which I presume I will have to do)?GT03ROB said:
Your earnings as a non-resident which would cover savings & gratuity remain free from HMRC clutches.
That's good to know, in effect, once you return and establish residency you can use that years isa allowance also. We've decided to stay out of the UK for a while longer, let all the Brexit shenanigans settle down!
Mezger said:
That's good to know, in effect, once you return and establish residency you can use that years isa allowance also.
We've decided to stay out of the UK for a while longer, let all the Brexit shenanigans settle down!
....and your full years personal allowance!We've decided to stay out of the UK for a while longer, let all the Brexit shenanigans settle down!
It's always good to have a choice to come back.
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