Moving to Libya : Tax Advice

zurichfaust

Good Morning Guys!

Wondered if someone could give me some advice?

I'm due to leave the UK on 05/04/10 to work for a Brazilian company working in Libya. My salary will be £3000 a month with me paying Libyan income taxes at source (@ 1.6% of total I gather?)

I'm making a complete move over there; obviously initially it's subject to successful 6 month probationary period so will require 2 x 3 months visitors permits. Once the 6 months has past then the company will sponsor me for a residents visa and I'll stay there for a 5-10 years - that's the plan anyway!

I don't have any assets over here and will only be returning to see friends and family for @ 40-50 days a year max.

I'm posting because I'm just in the process of completing my P85 and wondered whether I should a covering letter outlining everything?

Another question I had was that because Libya is outside the EU and I'll be paying local taxes; does that exempt me from paying UK income tax?

Any suggestions on what I should write in my covering letter to HMRC or indeed anything else I've missed would be greatly appreciated

Mark

fengirl_2

The P85 should cover everything. Its up to you to make the declaration that you consider that you will be non resident from the date you leave and thats what the form does. Assuming you remain non resident then you wont be liable to UK tax on your overseas income.