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Tax liability in the UK?

 
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Privateer



Joined: 21 Nov 2013
Posts: 1

PostPosted: Mon Nov 25, 2013 11:43 pm    Post subject: Tax liability in the UK? Reply with quote

I'm considering work in Saudi Arabia and wondering if you have to pay tax on your income there when you transfer it to a UK bank account. Can anyone out there tell me?
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trapezius



Joined: 13 Aug 2006
Posts: 1670
Location: Land of Culture of Death & Destruction

PostPosted: Tue Nov 26, 2013 5:53 am    Post subject: Reply with quote

Your government's website can. Which you can find using google.
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sicklyman



Joined: 02 Feb 2013
Posts: 930

PostPosted: Tue Nov 26, 2013 3:21 pm    Post subject: Reply with quote

it's complicated and if your situation is not usual then you should consult a tax advisor.

Basically, and you are not allowed to quote me on this in court Wink , if you leave the UK on a full-time contract that is a year or more in duration and remain overseas until a full tax year has elapsed, you will be regarded as non-resident for tax purposes. That's provided you spend no more than 90 days in the UK during any year you earn income in.

During that time, you can repatriate as much money as you want without paying tax on it.

If you return to the UK to reside during that period, you will be liable for tax on any income you have earned here while you have been overseas.

So, if you arrive here now, you will have to remain here until April 2015 for you to be non-resident for tax purposes. At that point and any time after it provided your circumstances remain the same, you can return to the UK for residency with no tax liabilities.

If I'm wrong on any of this, someone please tell me.
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psychedelicacy



Joined: 05 Oct 2013
Posts: 180
Location: Beijing

PostPosted: Tue Nov 26, 2013 10:50 pm    Post subject: Reply with quote

If you work in Country X under a full-time contract of employment, this income is subject to taxation in X. However, since Saudi Arabia has no income tax, no tax is payable on this income. Only people who work abroad full time but still have a UK income (rent from property, for example) have to worry about UK taxes.

Fill in a P85 and declare yourself non-resident from the day you leave the UK.
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PC Parrot



Joined: 11 Dec 2009
Posts: 459
Location: Moral Police Station

PostPosted: Wed Nov 27, 2013 3:50 am    Post subject: Reply with quote

Quote:

If you work in Country X under a full-time contract of employment, this income is subject to taxation in X. However, since Saudi Arabia has no income tax, no tax is payable on this income. Only people who work abroad full time but still have a UK income (rent from property, for example) have to worry about UK taxes.

Fill in a P85 and declare yourself non-resident from the day you leave the UK.


It's no longer as simple as that. There is now a 'points system' in operation which decides whether or not you are deemed non-resident ... regardless of where you actually reside.

Where you used to be able to spend up to 90 days in the UK each tax year without it changing your tax residency status, under the new rules the length of this period decreases according to certain criteria.

If, for example, you have a home in the UK and your wife and kids live in that home while you work in Saudi, you will be classed as a UK resident for tax purposes even if you only visit the UK for a fortnight a year.

http://www.hmrc.gov.uk/international/residence.htm#1

http://www.hmrc.gov.uk/international/rdr3.pdf

And clarifying your other point, IF you are not deemed UK resident for tax purposes, then, even if you have rental income from UK property, your Saudi earnings are not subject to UK tax. For non-residents, only income arising in the UK is taxed by the UK.
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sicklyman



Joined: 02 Feb 2013
Posts: 930

PostPosted: Wed Nov 27, 2013 5:11 pm    Post subject: Reply with quote

good links. Your second one seems to contradict you though as it says

1.27 You spend a sufficient amount of time in a UK home if, during the tax year, you are present in that home on at least 30 days.

not saying you're wrong, just wondering why your figure differs.
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PC Parrot



Joined: 11 Dec 2009
Posts: 459
Location: Moral Police Station

PostPosted: Thu Nov 28, 2013 3:55 am    Post subject: Reply with quote

Wrong about which part?

If you mean about the home, have you read page 6 of the pdf and followed through steps 1 to 4?

My 24 days was pulled out of a hat. It was my understanding when I went through this document in it's bill-phase over a year ago that anyone with a home occupied by wife & kids (under eighteen) will be classed as a UK resident irrespective of the number of days they do or do not spend in the UK.

Perhaps my memory is at fault. Read the stuff and let us know.
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scot47



Joined: 10 Jan 2003
Posts: 15343

PostPosted: Fri Nov 29, 2013 1:59 pm    Post subject: Reply with quote

Tax the buggers ! That is what I say !
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