Non Dom return to UK ......tax
Discussion
Had a job offer to be out of the Uk for some years. In initial talks, the business are telling me I can bring earnings back to the UK if I pay tax in the host , without paying UK tax. that doesnt seem right.
How do Brits who are non-dom for tax purposes buy cars and houses in the UK without paying tax on the cash when they bring it into the country when they finally return to the UK? Are there massive restrictions on being in the country and bring money in?
Reading the HMRC web site it seems that you have to do a self assessment when you bring the cash into the country. Does HMRC then want their pound of flesh?
How do Brits who are non-dom for tax purposes buy cars and houses in the UK without paying tax on the cash when they bring it into the country when they finally return to the UK? Are there massive restrictions on being in the country and bring money in?
Reading the HMRC web site it seems that you have to do a self assessment when you bring the cash into the country. Does HMRC then want their pound of flesh?
Cogcog said:
Had a job offer to be out of the Uk for some years. In initial talks, the business are telling me I can bring earnings back to the UK if I pay tax in the host , without paying UK tax. that doesnt seem right.
How do Brits who are non-dom for tax purposes buy cars and houses in the UK without paying tax on the cash when they bring it into the country when they finally return to the UK? Are there massive restrictions on being in the country and bring money in?
Reading the HMRC web site it seems that you have to do a self assessment when you bring the cash into the country. Does HMRC then want their pound of flesh?
HiHow do Brits who are non-dom for tax purposes buy cars and houses in the UK without paying tax on the cash when they bring it into the country when they finally return to the UK? Are there massive restrictions on being in the country and bring money in?
Reading the HMRC web site it seems that you have to do a self assessment when you bring the cash into the country. Does HMRC then want their pound of flesh?
When you say non-Dom, I think you actually mean non-res.
It does indeed sound like you’re becoming non-resident rather than non-dom.
Ie, you’re moving out of the U.K. to take up full time employment.
If this is the case, you’ll ordinarily be non resident for tax purposes. If this is the case, then you will not be taxed on money transferred to the U.K.
The remittance tax, which sounds like the company alluded to, is for U.K. residents who are non-domiciled. These guys and girls are, put simply, not taxed on income earned overseas, until they bring it back.
If you’re moving overseas with full-time employment, assuming you don’t leave certain ties to the U.K. such as spouse or children, and you’re not spending several months a year in the U.K., your tax status is fairly clear cut.
Ie, you’re moving out of the U.K. to take up full time employment.
If this is the case, you’ll ordinarily be non resident for tax purposes. If this is the case, then you will not be taxed on money transferred to the U.K.
The remittance tax, which sounds like the company alluded to, is for U.K. residents who are non-domiciled. These guys and girls are, put simply, not taxed on income earned overseas, until they bring it back.
If you’re moving overseas with full-time employment, assuming you don’t leave certain ties to the U.K. such as spouse or children, and you’re not spending several months a year in the U.K., your tax status is fairly clear cut.
In which case it sounds like your non resident for tax purposes, so you can send money back to the U.K. without any tax liability.
Bear in mind you can also split the year in which you leave the U.K., so you’re only U.K. resident for tax purposes for the part of the year before you leave.
Bear in mind you can also split the year in which you leave the U.K., so you’re only U.K. resident for tax purposes for the part of the year before you leave.
Testaburger said:
In which case it sounds like your non resident for tax purposes, so you can send money back to the U.K. without any tax liability.
Bear in mind you can also split the year in which you leave the U.K., so you’re only U.K. resident for tax purposes for the part of the year before you leave.
Thanks. Am i right that there are restrictions on UK bank accounts whilke away?Bear in mind you can also split the year in which you leave the U.K., so you’re only U.K. resident for tax purposes for the part of the year before you leave.
Cogcog said:
Testaburger said:
In which case it sounds like your non resident for tax purposes, so you can send money back to the U.K. without any tax liability.
Bear in mind you can also split the year in which you leave the U.K., so you’re only U.K. resident for tax purposes for the part of the year before you leave.
Thanks. Am i right that there are restrictions on UK bank accounts whilke away?Bear in mind you can also split the year in which you leave the U.K., so you’re only U.K. resident for tax purposes for the part of the year before you leave.
Testaburger said:
If you’re moving overseas with full-time employment, assuming you don’t leave certain ties to the U.K. such as spouse or children, and you’re not spending several months a year in the U.K., your tax status is fairly clear cut.
If you are working overseas with a full time job overseas & less than 90 days in the Uk, the ties to the Uk are irrelevant. I'm non-res, with wife, house, bank accounts, cars, gym memberships, all in the UK & wages paid straight into UK bank account. No issue from HMRC
.
GT03ROB said:
If you are working overseas with a full time job overseas & less than 90 days in the Uk, the ties to the Uk are irrelevant.
I'm non-res, with wife, house, bank accounts, cars, gym memberships, all in the UK & wages paid straight into UK bank account. No issue from HMRC
.
How do you cope with seeing the OH 90 days a year ot does OH alos come to you?I'm non-res, with wife, house, bank accounts, cars, gym memberships, all in the UK & wages paid straight into UK bank account. No issue from HMRC
.
GT03ROB said:
If you are working overseas with a full time job overseas & less than 90 days in the Uk, the ties to the Uk are irrelevant.
I'm non-res, with wife, house, bank accounts, cars, gym memberships, all in the UK & wages paid straight into UK bank account. No issue from HMRC
.
They certainly aren’t irrelevant. I personally know 2 colleagues who I work with who have fallen foul of the ties. Ties limit the amount of days you can spend in the U.K.; in your case 90 days. I'm non-res, with wife, house, bank accounts, cars, gym memberships, all in the UK & wages paid straight into UK bank account. No issue from HMRC
.
For most, 90 days is more than adequate. I, however, could feasibly spend significantly more than 90 days in the U.K., so i must give that consideration.
GT03ROB said:
Wrong! Assuming non-res
Not sure if you’re always this (un)helpful.OP - you can bank as usual, but certain accounts aren’t available if you’re non-resident for tax purposes. For example, you can’t open or contribute to an ISA, SIPP and a few other investment vehicles.
Those you already have, however, can stay.
Also, many investment platforms don’t want to deal with non-residents ordinarily, even though HMRC don’t prohibit it.
In order to invest with vanguard in a general account, I’ve had to negotiate it, and I need to invest large chunks of cash at a time.
Edited by Testaburger on Sunday 24th June 11:57
Cogcog said:
GT03ROB said:
If you are working overseas with a full time job overseas & less than 90 days in the Uk, the ties to the Uk are irrelevant.
I'm non-res, with wife, house, bank accounts, cars, gym memberships, all in the UK & wages paid straight into UK bank account. No issue from HMRC
.
How do you cope with seeing the OH 90 days a year ot does OH alos come to you?I'm non-res, with wife, house, bank accounts, cars, gym memberships, all in the UK & wages paid straight into UK bank account. No issue from HMRC
.
I'm now in Kazakhstan work 28/28 so I'm off for 6 months a year, 4 weeks at a time. We then spend around 3 months elsewhere
It's not always easy, but can't really beat the current lifestyle
It's also about having quality of time not necessarily quantity. Working in the UK I leave home 6:30am, getting home around 7:30 in the evening, I'm then frequently 1-2 week business trips to the US, mid-East or Far East. I get 5 weeks off a year.
Testaburger said:
GT03ROB said:
Wrong! Assuming non-res
Not sure if you’re always this (un)helpful.OP - you can bank as usual, but certain accounts aren’t available if you’re non-resident for tax purposes. For example, you can’t open or contribute to an ISA, SIPP and a few other investment vehicles.
Those you already have, however, can stay.
Also, many investment platforms don’t want to deal with non-residents ordinarily, even though HMRC don’t prohibit it.
In order to invest with vanguard in a general account, I’ve had to negotiate it, and I need to invest large chunks of cash at a time.
Edited by Testaburger on Sunday 24th June 11:57
Testaburger said:
GT03ROB said:
As he asked about bank accounts rather than investment vehicles, I'd say my comment was fairly accurate.
Are you trying to suggest that an Individual Savings Account isn’t a bank account? .... being an expat with a full time oversea job is nowhere near as complex as some would make out. Your normal UK accounts are unaffected, remortgaging is unaffected, getting a mortgage can be unaffected, contributing to a pension can be unaffected.... yes you need to understand what is happening & the constraints...
... but honestly it is far simpler than most make out. Albeit if you get it wrong the costs can be high.
Testaburger said:
Not sure if you’re always this (un)helpful.
OP - you can bank as usual, but certain accounts aren’t available if you’re non-resident for tax purposes. For example, you can’t open or contribute to an ISA, SIPP and a few other investment vehicles.
I think you’re allowed to continue contributing up to £3,600 gross to pension for 5 years post leaving UK.OP - you can bank as usual, but certain accounts aren’t available if you’re non-resident for tax purposes. For example, you can’t open or contribute to an ISA, SIPP and a few other investment vehicles.
Edited by Testaburger on Sunday 24th June 11:57
Testaburger said:
GT03ROB said:
If you are working overseas with a full time job overseas & less than 90 days in the Uk, the ties to the Uk are irrelevant.
I'm non-res, with wife, house, bank accounts, cars, gym memberships, all in the UK & wages paid straight into UK bank account. No issue from HMRC
.
They certainly aren’t irrelevant. I personally know 2 colleagues who I work with who have fallen foul of the ties. Ties limit the amount of days you can spend in the U.K.; in your case 90 days. I'm non-res, with wife, house, bank accounts, cars, gym memberships, all in the UK & wages paid straight into UK bank account. No issue from HMRC
.
For most, 90 days is more than adequate. I, however, could feasibly spend significantly more than 90 days in the U.K., so i must give that consideration.
..... my statement was less than 90 days ..... ties are irrelevant.... so now you tell me how they are relevant when working full time overseas & spending less than 90 days in the UK...... ahhh thats right you can't..... so now who is really being unhelpful......
... ah ha just realised..... you are a pilot .... you bunch are the f
kwits who caused the major clampdown on expats & caused the ties to be introduce ......
... no wonder you have strong views on the system.... Edited by GT03ROB on Sunday 24th June 18:06
Edited by GT03ROB on Sunday 24th June 18:07
TFP said:
Testaburger said:
Not sure if you’re always this (un)helpful.
OP - you can bank as usual, but certain accounts aren’t available if you’re non-resident for tax purposes. For example, you can’t open or contribute to an ISA, SIPP and a few other investment vehicles.
I think you’re allowed to continue contributing up to £3,600 gross to pension for 5 years post leaving UK.OP - you can bank as usual, but certain accounts aren’t available if you’re non-resident for tax purposes. For example, you can’t open or contribute to an ISA, SIPP and a few other investment vehicles.
Edited by Testaburger on Sunday 24th June 11:57
GT03ROB said:
I can assure you it's far more than that....... but there is a time limit...... I continue to contribute the same as I would in the UK with employers contribution, but as you may not be paying tax anyway, effectively you are taking non-taxable income & making t taxable long term. With the employers contribution it still makes sense but just not as much as when you are paying UK tax.
Rob are you able to take the pension contribution as salary?Jockman said:
GT03ROB said:
I can assure you it's far more than that....... but there is a time limit...... I continue to contribute the same as I would in the UK with employers contribution, but as you may not be paying tax anyway, effectively you are taking non-taxable income & making t taxable long term. With the employers contribution it still makes sense but just not as much as when you are paying UK tax.
Rob are you able to take the pension contribution as salary?Gassing Station | Finance | Top of Page | What's New | My Stuff