Dubai - tax free working?

[no1special]

Lets say a 4 month contract working in Abu Dhabi....woudl this be tax free, or would the individual need to be working out there for 12 months to gain tax free status?

Cheers
N1S

[anonymous-user]

Dubai would be tax fre, but if you are Uk resident now you will be liable for Uk tax until 5 april 2012.
Nice of Mr Brown, chopped jobs in Uk and made it harder to move overseas.

[Eric Mc]

Berw said:

Dubai would be tax fre, but if you are Uk resident now you will be liable for Uk tax until 5 april 2012.
Nice of Mr Brown, chopped jobs in Uk and made it harder to move overseas.

I think that rule has been in for decades.

To be non-resident for tax purposes you must be out of the UK for a complete tax year i.e. for a period spanning from 6 April to the following 5 April.
If you are away for only 4 months you are still a UK tax resident and liable to UK tax on your worldwide income.

However, UK tax may be mitigated by tax already paid abroad - especially if the UK has a double taxation agreement with the other country.

[speedyman]

Berw said:

Dubai would be tax fre, but if you are Uk resident now you will be liable for Uk tax until 5 april 2012.
Nice of Mr Brown, chopped jobs in Uk and made it harder to move overseas.

Tax changes were actually made by Margaret Thatcher of all people in the early 80's. Used to be able to claim tax relief for days out of the UK.

Edited by speedyman on Tuesday 27th July 19:04

[anonymous-user]

I thought the need to be out a full tax year was made much latter than the 80's. Maggie did change the right to claim if you were out part of the year, but when I left the UK in 82 all you had to do was have a overseas contract for over a year and the tax man didn't bother you on the overseas earnings.

[Eric Mc]

Berw said:

I thought the need to be out a full tax year was made much latter than the 80's. Maggie did change the right to claim if you were out part of the year, but when I left the UK in 82 all you had to do was have a overseas contract for over a year and the tax man didn't bother you on the overseas earnings.

I started working in the UK in 1986 and the need to be actually outside the UK for a full tax year was in by then. Exceptions are made for business trips or private trips home as long as the overall time spent in the UK in the tax year does not exceed 90 days.

[anonymous-user]

OK I'm getting old and can't remembrr dates, I left in 81/2 and all they needed then was a contract for a year and a day, and you never heared from the UK tax man from the day you left, even if you cancelled the contract and came home early.
Any way silly rule as it makes overseas posting unatrractive at the start must stop some people 'getting on their bike to find work'.