Job Discussion Forums

[scot47]

Can someone with a bigger brain than mine explain to me the implications in the changes brought about here

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

Does that mean if I have a house in the UK that I have to pay tax on money I remit to the UK !????

[veiledsentiments]

It's 81 pages Scot... it would be easier (and more accurate) to consult a tax accountant in the UK who works with expats. Or perhaps someone here has already done that.

VS

[scot47]

Sometimes cats tell the truth. This is exactly what I will do. What throws me I think is the metaphysical distinction between "Resident" and "Ordinarily Resident".

You know some people spend their youth (and Daddy's money) going to Lectures on International Law. Sheech !

[scot47]

What is happening to me ? Here I am, agreeing with a cat masquerading as a tax adviser ! Where did I put my Valium ?

[Never Ceased To Be Amazed]

Scot, you would definately fall under the "Resident" mantle as there is nothing "Ordinarily" about you...

NCTBA

[veiledsentiments]

It is deciphering terms like that which keep accountants employed. I'm rather used to US tax terminology, but who knows once you get into another tax code. For you, I would think that there will be (or should be) a difference in the treatment of renters versus property owners.

VS

[scot47]

I did find this on another forum:-

'An individuals liability to tax in the UK is largely dependent upon their residence status in the UK for tax purposes.

You can find information on residence and liability to tax in the UK in booklet IR20 at http://www.hmrc.gov.uk/leaflets/c9.htm and I refer you in particular to paragraph 2.2 and 5.19.

You will note that if an individual leaves the UK to work full time abroad under a contract of employment they are treated as not resident and not ordinarily resident, subsequent to their departure, if they meet ALL the following conditions:

* Their absence from the UK AND employment abroad BOTH last for at least a whole tax year (6 April to following 5 April inclusive).
* During their absence any visits to the UK
* Total less than 183 days in any tax year, AND
* Average less than 91 days a tax year

You will also note that an individual treated as not resident in the UK, has no liability to tax here on emoluments received in respect of duties of an employment performed abroad.

An individual treated as resident in the UK will however be liable to tax here on their worldwide income. They will normally be able to claim credit against their UK tax liability for any overseas tax paid, up to the amount that the UK will charge on any overseas income - Any further queries in respect of an individuals liability as a resident of the UK must be pursued with their own UK tax office.

I regret that I am unable to comment on any liability to tax outside the UK. That is a matter that must be pursued with the relevant overseas authorities.

Having said that, the UK has negotiated Double Taxation Agreements with a number of countries which contain "Professors and teachers", or other similarly named, Articles. These may prevent any liability to tax in the "other Contracting State".

You can view all the Agreements within our online Double Taxation manual at:

http://www.hmrc.gov.uk/manuals/dtmanual/DT2140+.htm '

[007]

Well Uncle Scott, resident or not resident, Alex Salmond wants you to pay your Magic Kingdom's income tax if you want to retire and live the rest of your life in his Kingdom!

BTW, it seems Alex Salmond wants more extra tax powers from Westminster, and wants to tax fat cats (like Uncle Scott! )who are working overseas, especially in the oil rich Magic Kingdom!

[scot47]

Further reassurance


8.5 Leaving the UK to work abroad as an employee
If you are leaving the UK to work abroad full-time, you will only become
not resident and not ordinarily resident from the day after the day of
your
departure, as long as:
� you are leaving to work abroad under a contract of employment for at
least a whole tax year
� you have actually physically left the UK to begin your employment
abroad
and not, for example, to have a holiday until you begin your employment
� you will be absent from the UK for at least a whole tax year
� your visits to the UK after you have left to begin your overseas
employment will
- total less than 183 days in any tax year, and
- average less than 91 days a tax year. This average is taken over the
period of absence up to a maximum of four years � see 8.3 which will
show you how to work out this average. Any days you spend in the UK
because of exceptional circumstances beyond your control, for example
an illness which prevents you from travelling, are not normally counted
for this purpose.

[scot47]

http://www.taxcafe.co.uk/samples/nrosample.pdf

[scot47]

I understand that HMG is hard up and needs the money urgently to pay for these new aircraft carriers that they simply must have.

[meri]

Just to go back to the opening post. If you earn income from any UK property you have to pay tax on that money regardless of residence/non-residence status. However, if, like most Saudi teachers, you spend less than 90 days in the UK each year, you do not have to pay tax on your income here as you are considered non-resident. Well at least that's what I've been doing for a while. I hope there are no changes as I could only make it to p15 of the linked document.

[scot47]

I have had reports that the position is changed and that if you have a house in the UK, which you use or rent out, you may be treated as "resident and ordinarily resident"

I am going to see a Chartered Accountant when I am back in Blighty at the end of June.

[scot47]

........but until then I will sleep better having just read this from the official site

http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm#1

and this

http://www.hmrc.gov.uk/cnr/faqs_general.htm