Non-Residency for tax purposes.

Discussion in 'Jobs (Discussion)' started by INVICTUS, Mar 23, 2006.

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  1. Right guys, any of you tax dodgers able to help me out with this one?

    I was chatting with a potential employer the other day and the subject of non-residency tax came up. Currently you can spend up to an average of 91 days in the UK and still remain a non-resident, i.e no UK income tax. However, I have been told that this is about to be reduced to only 27 days. Are there any overseas gurus out there who are able to tell me when this is likely to occur? Any help would be much appreciated. Thanks.
  2. Hi
    It was 90 days out of the country averaged over 4 years (Don't understand that) unless the Budget has changed it should still be the same.

    I believe the tax boys are getting pretty tough on this and brought a BA pilot to book even though he fulfilled the criteria they decided in essence that he lived in the UK had property and therefore was resident!

    Bunch of buggers, If you are going to do it pre planning is essential, try and nail as many days out the country early in the year.

    I missed last year by 3 days and my accountant was decidedly unimaginative with the maths!! that 40% is the real incentive for going to the trouble of staying away from home!!

    there was another thread on here somewhere

    May the force be with you, tax is painful!!

    They should get you started

  3. Cheers Gimp, much appreciated.
  4. In full agreement - tax rate over here is a much more realistic 7% :D Methinks I'll be checking out the old revenue website for clarification on this. Thanks for the heads up & if I get it wrong (well I am a bloody tax consultant :wink: ) I deserve to spend an evening in the company of pentwyn 8O

  5. I've always worked on the 90-day rule of thumb, and never been called to the beak for it. I usually get back to the UK for about 6 weeks in the year, mind, and depending on the contract spend a few weeks in a civilised or pleasantly sunny spot elsewhere. I reckon lancslad should be appointed ARRSE adviser on this... :D
  6. You also need to achieve non residence status by being out of the UK for a complete tax year from 6th April xxxx. I sent my P85 in to let the tax man know I was leaving in April 2004 but for various reasons I never went until June 2004, so my non residence status did not start on time.
    Not that it has made much difference as my original P85 was lost and I have had no reply to the second one I sent in, so it will be interesting to see what happens after the end of this tax year. I have also had problems because they lost my P85 in sorting out my 'voluntary' NI contributions....

    I worked in the ME for 5 years solid, returning to the UK every 3-4 months, never seemed to exceed the limit though and now I live outside of the UK with no intention of returning except for short visits.
  7. A lot of people make the mistake of spending time out of the country in the calendar year rather than the fiscal year, and besides 3 months is more than long enough to spend in the UK each year me thinks!
  8. But.......... spend as long outside the country early in the year as you never know what turns up forcing you to return to the UK.

  9. ....further to earlier answers; I left UK after 22 years, the tax man initially fell about laughing when I asked for 'Tax Exile' status but I later received several large rebates from HM mafia (inland revenue). They still tax my pension (but at a very modest rate) and i pay NI cont at the self employed rate (about 9 quid per month)

    Its worth noting that anyone paying UK tax/Ni cont may be entitled to child benefit for dependent children, even if they're abroad & the wife/kids have never set foot in UK.

  10. A point many dont realise is that if you are a MoD pensioner you should contact the cardiff tax office (who look after MoD opensioners tax affairs) submit your P85 to them (not your employers0 and they will tell the employer about your NT and will arrange to hold all your allowances against your pension. End result is that the amount of money you receive in pension goes up as you are paying less tax on it.

    Top tip I picked up on the financial briefings was always use Ty Glas tax office (cardiff) for your tax affairs.

    I have always found them to be very helpful and give excellent advice.
  11. Have to confess I found Ty Glas to be quite helpful.

    About ten years agoI rang them up and explained my question regarding something or other (cannot remember exactly what it was now), told the lady about a letter I had from them.

    Basically she stated that what I was telling her sounded very strange - and wanted to know who signed it.

    Guess what it was her. Much laughter on her part- no problem then the letter must be fine and they sent me a cheque for a grand!
  12. Have been out of the UK for 8 years. Initially went to the ME where an ol-timer explained the ropes to me about 90 days etc.

    Now I was told that in tax law the burden of proof is on you to prove you were out of the UK not the tax man to prove you were in more than 90. To that end, I was advised to keep (as an intial proof) all boarding cards and tickets and still do - although next month I return to England's green and expensive land.
  13. Aahhh, Lanky, have I got some bad news for you! More a light shade of brown at the moment! I stood on top of the Cotswolds at the weekend, and the countryside looked as if it was August already!


    Edited to correct the typo!