Going abroad - where to leave money

BritRael

Biggles wrote: »

I believe an R105 is the correct form for ex-pats to get interest paid gross, not R85. But some banks don't accept them; Nationwide is one.

hmmm...better tell the tax man then because I was told to use this form many years ago by them and I have filled in loads (including several this year) with no problems having been an expat for over 15 years.

Nationwide (and other banks/BS's) will supply them on the premises.

BritRael

chewmylegoff wrote: »

i don't think you're right there - did check this out and it seems that she becomes non-resident from the day after she leaves the UK, as long as the employment contract covers at least one full tax year and she takes up employment immediately, which both apply.

http://www.hmrc.gov.uk/cnr/hmrc6.pdf para 8.5 deals with.

You are quite right.

However, it is the number of days in the UK that is important. As she is going for 2 years, if she stays out of the UK for that whole time (and is careful about her return date), she could be ok. The concern that I was trying to point out, is that as she has left half way through 09/10, and if away for 2 years exactly, she would presumably return half way through 10/11 and might not be out long enough. It is a simple calculation to average <91 days per tax year (with a max of <183 in any one tax year) over a rolling 4 year period.
When this rule change was introduced, it created havoc amongst the contracting expat community, as a lot of contracts are for 1 year. But unfortunately do not run from tax year to tax year.

Biggles

BritRael wrote: »

hmmm...better tell the tax man then

I think he already knows ;-)
http://www.hmrc.gov.uk/CNR/r_and_d.htm

BritRael

Biggles wrote: »

I think he already knows ;-)
http://www.hmrc.gov.uk/CNR/r_and_d.htm

Whats your point?

From the HMRC link you so kindly provided:-

"If you have left or are about to leave the UK, you should normally complete form P85, ...." Like me 15 years ago, she has just left, which is why they told me to use the R85 form.

"Individuals who are not ordinarily resident may register with their building society...by completing declaration form R105 ...." Not ordinarily resident, is not the same status as non-resident for tax purposes.

Biggles

BritRael wrote: »

"If you have left or are about to leave the UK, you should normally complete form P85

You originally referred to Form R85 which is, as I understand it, not the form to send to your bank/BS in these circumstances. Form P85, on the other hand, is certainly the form to provide info for HMRC to decide how to treat you for tax purposes when you leave the country.

BritRael

Biggles wrote: »

You originally referred to Form R85 which is, as I understand it, not the form to send to your bank/BS in these circumstances. Form P85, on the other hand, is certainly the form to provide info for HMRC to decide how to treat you for tax purposes when you leave the country.

Actually, they did and do recommend R85, I'll post a link in a sec.
http://www.hmrc.gov.uk/calcs/r85/

P85 is to decide on tax status, but the OP was asking about gross interest on savings.

Reaper

BritRael wrote: »

Actually, they did and do recommend R85, I'll post a link in a sec.
http://www.hmrc.gov.uk/calcs/r85/

I don't think that link adds much. It says:

If you live in the UK, use this checker to see if you should be filling in the form

Since they don't it doesn't sound as though R85 is the right form to use in this case. P85 & R105 look a better bet.

chewmylegoff

BritRael wrote: »

You are quite right.

However, it is the number of days in the UK that is important. As she is going for 2 years, if she stays out of the UK for that whole time (and is careful about her return date), she could be ok. The concern that I was trying to point out, is that as she has left half way through 09/10, and if away for 2 years exactly, she would presumably return half way through 10/11 and might not be out long enough. It is a simple calculation to average <91 days per tax year (with a max of <183 in any one tax year) over a rolling 4 year period.
When this rule change was introduced, it created havoc amongst the contracting expat community, as a lot of contracts are for 1 year. But unfortunately do not run from tax year to tax year.

the formula is ([no. days visiting UK]/[no. days since leaving]x365), according to the guidance.

the guidance makes it pretty clear that the days in this tax year before she left and the days in the 2011/12 tax year after she permanently returns will not affect the calculation or her status as non-resident for UK re: the employment contract. (although obviously she will be resident for tax during the "before and after" stage).

BritRael

Reaper wrote: »

I don't think that link adds much. It says:

Since they don't it doesn't sound as though R85 is the right form to use in this case. P85 & R105 look a better bet.

lol - please yourself old mate. :wall:
Maybe I've been told wrong by the HMRC for the last 15 years :rolleyes:

BritRael

chewmylegoff wrote: »

...although obviously she will be resident for tax during the "before and after" stage).

This is what I'm talking about. Because of the short duration (and timing) of this contract it might be an idea to consult HMRC.
If necessary, she might be able to get the whole amount tax free by taking a vacation somewhere overseas at the end of the contract to reduce her days in the UK.
Good luck