Tax Code: NT???

[Mattt]

I’ve just received a new tax code through: NT

I changed employer in mid Jan and moved abroad, I advised HMRC of this on a form, so they changed my tax code for 2008-2009 to this NT, even though I was working up until that point normally in London. Does this mean that all payments from the new employer will be tax free, and any tax I paid up until this point will remain – or will they credit me back all tax I paid this year (and then I’ll do a self assessment?).

[Eric Mc]

Are you now permanently abroad?

Is you employer based in the UK or the country you have moved to?

Have you ceased being a UK tax resident?

[Mattt]

Eric Mc said:

Are you now permanently abroad?

Is you employer based in the UK or the country you have moved to?

Have you ceased being a UK tax resident?

Here for a few years, not permanent.

Based in UK, paid in UK.

I told them I'll no longer be tax resident - I can't remember what the form was called (I'll only be in country for max 30 days a year).

[Eric Mc]

As long as you stay out of the UK for the entirety of a given tax year, you will not be subject to UK tax for that tax year.
You are allowed to return to the UK in any given tax year and remain non-taxable providing the return vists do not exceed a given number of days.(183 ) but no continuous stay can have exceeded 91 days.

Your employer has been given the NT code for tax year 2009/10 on this basis and they will not be deducting UK tax from your salary. Of course, depending on what country you have moved to, you may need to pay tax on this income there.

[Mattt]

I was expecting them to give that code for next tax year, but they gave it for 08/09 (current) tax year?

[Eric Mc]

On what date did you move abroad?

[Mattt]

20th Jan, but I only started working for my last company on the 18th August 2008 - so didn't pay for a full year anyway. Before that I was a student.

[Eric Mc]

So you would have been liable to UK tax on your earnings between 6 April 2008 and 20 January 2009.

You have only had UK taxable earnings in this tax year for 155 days, so your tax allowances should be £6,035 155/365 = £2,563.

I think your correct Coding for 2008/09 should be something like 256L, not NT.

Maybe you should check with the Tax Office to see if they have got it right.

NT would be correct for 2009/10 - provided you stay a non UK tax resident for the entirety of 2009/10.

[Mattt]

Thanks Eric - I assumed they made a mistake, would be nice if it was true

[Mattt]

Eric Mc said:

So you would have been liable to UK tax on your earnings between 6 April 2008 and 20 January 2009.

Is this the case Eric? My company are telling me that I am liable for tax on my earnings for the entirety of this current tax year, including all earnings from work abroad since 20th January until the end of the current tax year in April. I must admit, I always thought this was the case.

Eric Mc said:

You have only had UK taxable earnings in this tax year for 155 days, so your tax allowances should be £6,035 155/365 = £2,563.

Would I only get 155 days as an allowance, do days where you are not in employment not count towards total allowance?

If you returned to the UK permanently before the end of a tax year (say a couple of days beforehand), even if your visits (and subsequent residence) in the UK in that tax year totaled less than the 91 days – would you be liable for tax for the whole of that year?

Thanks for the help – I’m trying to get to grips with this non-resident status!