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tax on foreign earnings/residency issues

Hi, Ive decided to ask your advice on this:

I left the UK on a permanant basis in Dec 2006 to live and work in Dubai.
According to self assessment I did leave my settled life and everything in the UK behind. As a result, i was on a NT (no tax) code.

However I had to return in November 2008 as I was seconded back due to company issues, tho still working for the foreign interest.

HM revenue are claiming I owe 6000 pounds tax for the year, basically all the time i was there from April 2008 to november 2008 doesnt count and they want the tax.

I have successfully argued (i think) that they will remove the portion of tax owed from while i was in Dubai, however they will not treat the rest of the salary as foreign earnings as I was physically in the UK.

my total days spent in the uk was less than the 160 odd required by the HM revenue for requiring taxm to be paid on income.

They have not confirmed they will give me the split year treatment as they are apparently 6 weeks behind in postal processing (i had posted in a foreign earnings page and covering letter in early January) but i was hoping to get the full year as tax free.

my job in Dubai ceased after april 2008, and i became permanant in the UK after that date but was physically in the uk from november 2008.

what do you think?
Target Savings by end 2009: 20,000
current savings: 20,500 (target hit yippee!)
Debts: 8000 (student loan so doesnt count)

new target savings by Feb 2010: 30,000

Comments

  • Can you check the years again - confusing from your post.

    When did you leave the UK?
    When did you move back?

    I will be able to help if you confirm the above
  • Cook_County
    Cook_County Posts: 3,096 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Aside from clarifying dates, why was there no PAYE withheld after you came back? Was there a failure by your employer, were you a permanent establishment of the foreign entity in the UK?
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