Tax question help advice, needed
Discussion
As some of you might know I'm living/working in Hong Kong / Macau at the moment.
So I don't pay TAX in the UK (arrh let's pause for a moment at how wonderful that is...)
Now using the old system I could spend a maximum of 183 days in the UK but it had to average 90 days over 4 years.
This as I understand it about is about to change in April 2013 to much less.
the new law states you don't pay tax if…
non resident for 3 tax years & spend less than 46 days in a single tax year
resident for 1 or more of the 3 previous tax years, fewer than 16 days in the current tax year
work full time over seas 35 hours a week or more, less than 90 days in the UK max 20 days working in the UK
My days in the UK were
2010 - 2011 = 182 days (the year I started the job)
2011 - 2012 = 17 days
2012 - 2013 = 25 days so far
My question is; if I come back to the UK before April 2013 if I can still come for the 90 days?
As I work full time overseas I think, I should fall under this rule
"work full time over seas 35 hours a week or more, less than 90 days in the UK max 20 days working in the UK"
Does anyone know about this stuff and I'm right?
Thanks
P
So I don't pay TAX in the UK (arrh let's pause for a moment at how wonderful that is...)
Now using the old system I could spend a maximum of 183 days in the UK but it had to average 90 days over 4 years.
This as I understand it about is about to change in April 2013 to much less.
the new law states you don't pay tax if…
non resident for 3 tax years & spend less than 46 days in a single tax year
resident for 1 or more of the 3 previous tax years, fewer than 16 days in the current tax year
work full time over seas 35 hours a week or more, less than 90 days in the UK max 20 days working in the UK
My days in the UK were
2010 - 2011 = 182 days (the year I started the job)
2011 - 2012 = 17 days
2012 - 2013 = 25 days so far
My question is; if I come back to the UK before April 2013 if I can still come for the 90 days?
As I work full time overseas I think, I should fall under this rule
"work full time over seas 35 hours a week or more, less than 90 days in the UK max 20 days working in the UK"
Does anyone know about this stuff and I'm right?
Thanks
P
I could be wrong but does that then suggest you should owe tax on the 2010-2011 year at the very least? Unless there is a transition period between the change in law for people already meeting the required number of days, you need an accountant who specialises in this they will keep you right.
If there is a financial forum I'd ask the question there, it's a complicated subject, I know a few guys that work away but they're companies pay some of the tax and tax to the countries they are working in also
If there is a financial forum I'd ask the question there, it's a complicated subject, I know a few guys that work away but they're companies pay some of the tax and tax to the countries they are working in also
Edited by Hollowpockets on Wednesday 9th January 07:42
Its complcated but i think it depends on when did you leave the UK in 2010-11? Non residence starts on your first complete tax year out of the country, so if you left part way though 2010-11 you will be treated as resident of that year.
Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if:
1.your absence and employment from the UK covers a complete tax year
2.you spend less than 183 days in the UK during the tax year
3.your visits to the UK do not average 91 days or more a tax year over a maximum of four years
Under the new rules you should be treated as non resident as you have a full time job abroad and should be able to come back for up to 90 days.
Having said all of that every case is different I would suggest you either give HMRC a ring and ask them or take suitable professional advice.
worty
Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if:
1.your absence and employment from the UK covers a complete tax year
2.you spend less than 183 days in the UK during the tax year
3.your visits to the UK do not average 91 days or more a tax year over a maximum of four years
Under the new rules you should be treated as non resident as you have a full time job abroad and should be able to come back for up to 90 days.
Having said all of that every case is different I would suggest you either give HMRC a ring and ask them or take suitable professional advice.
worty
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