Question about expats, HMRC and tax...
Question about expats, HMRC and tax...
Author
Discussion

Cwgt93

Original Poster:

30 posts

69 months

Tuesday 2nd May 2023
quotequote all
Hi everyone, my question is...if someone currently works in the Middle East under a NT (non taxable) tax code from May 14th 2022 until the present day, would they be liable to repay tax to the UK government, having not completed a full tax year? Note: Said person is paid in local currency in to a local bank account - no traces to the UK.

It's been said that because a full tax year hasn't been completed, that tax would have to be repaid from the earnings.

My questions would be...

1. How would HMRC have any idea what amount/if any money was earned?

2. Is there any truth to having to complete a full tax year ie. Now April 2023 - April 2024 before being able to return to the UK without financial penalty?

I have had a look online and can't find anything definitive, especially recently. Phoning HMRC themselves isn't an ideal option due to phone costs and usual holding times.

Many thanks for any help/experiences.

Edited by Cwgt93 on Tuesday 2nd May 09:31

OutInTheShed

12,946 posts

49 months

Tuesday 2nd May 2023
quotequote all
Most of what you need to know is probably on the HMRC website.
Failing that, I would look at the Contractor UK website and forum.
There you should find links to reliable specialists.

DaveA8

697 posts

104 months

Tuesday 2nd May 2023
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The last I’d do is speak to HMRC, as Buffett says don’t ask a barber if you need a haircut
Get some proper professional paid advice

Panamax

8,089 posts

57 months

Tuesday 2nd May 2023
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...or save yourself a wedge and use the simple online non-resident status checker on HMRC's website.
https://www.gov.uk/tax-foreign-income/residence

anonymous-user

77 months

Tuesday 2nd May 2023
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Rules changed under Brown, you have to be absent a full tax year.
Old rules were you had to 'intend' to be absent for 12 months , that changed years ago to had to actually be absent for 12 months and nice chancellor Brown changed it to a tax year don't come back, find another overseas post, you dont need to be on one job or even one country.
I was unemplyed for a few in 2016, was offred a few jobs in Uk but stayed out because I didn't want to have to 'requalify'. I know loads of people who won't work in the Uk between overseas posts
In the 80s you had a tax cut if you were absent more than 30 days that changed early mid 80s.
Hrmc will have a very good idea of what is being paid in the Middle East they will simple go high and you will then have to prove you had less.

martinbiz

3,637 posts

168 months

Tuesday 2nd May 2023
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This probably needs moving to the finance forum, lots of knowledge on there

GT03ROB

13,976 posts

244 months

Tuesday 2nd May 2023
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Your only saviour in this case is to look at split year treatment, but this will require you to still be out until April 2024, but at least your overseas earnings in 22-23 may be outside UK tax.