Working overseas - 90 day tax rule

[MGYoung]

Morning all,

I will be leaving the UK to work overseas on 14 June 2008.

My understanding is that I will not pay any UK tax if I am resident in the UK for for less than 90 days (i.e. 89 days) in any one tax year.

Taking 5 April 2008 as day No. 1 of this tax year then the day I leave the UK (14 June 2008) is day 71 of this tax year.

This leaves me 89 - 71 = 18 days in which I can be resident in the UK until then end of the 2008 / 2009 tax year. I plan to come home either 2 or 3 times between 14 June 2008 and the end of the 2008 / 2009 tax year.

My understanding is that the days in which I arrive and leave the UK count as part of the 89 allocation. Is this correct?

One thing I am unsure about is that my flight leaving from the UK departs around 2pm on 14 June 2008 but doesn't land until 12.30am on 15 June 2008 local time (UK time will be three hours before this so 9.30pm on 14 June 2008). By passport will therefore be stamped on arrival with the date of 15 June 2008. What evidence do I need to provide to HMRC to prove that I was not in the country for more than 89 days in the tax year.

I have filled out the HMRC form reference P85 and will complete and submit form reference CF83 (National Insurance contribution when working abroad) shortly after I leave. I need my P45 before I can submit form P85.

Can any of the accountants out there confirm if my understanding is correct?

Thanks and regards

Martin.

[MGYoung]

I'm going to work in Dubai.

[MGYoung]

Fer said:

MGYoung said:

I'm going to work in Dubai.

Can you recommend any leads or job sites for Dubai?

Depends on your line of work? www.justconstruction.net is a good site. Other than that the usual monster and hot jobs sites are worth a look.

Best of luck.

Martin.

[MGYoung]

Eric Mc said:

"Residence - non-residence" is quite a tricky area.

Jees, you're not wrong!. I've downloaded the IR20 booklet. Why on earth does it have to be this complicated!!

The one thing that I'm still not clear on is that if I am resident in the UK at the start of the 2008 / 2009 tax year but become non-resident from 14 June 2008 and remain non-resident for the whole of the 2009 / 2010 tax year will I pay UK income tax on my overseas earnings for the remainder of the 2008 / 2009 tax year assuming that I average less than 90 days in the UK over this period?

Thanks for all the advice.

Martin.

Edited by MGYoung on Wednesday 28th May 12:20

[MGYoung]

Thanks for all the advice. My contract overseas is a permanent position. I don't know exactly how long I will spend in dubai but the project I will be joining is scheduled to run until november 2010 so it is likely that I will non-resident until then.

I've lined up a meeting with an accountant on Monday to go through the finer details.

Thanks again.

Martin.