Non domicile - Working Abroad Tax?

love2learn

Hi,

My wife is going to be working abroad outside the European union for 2 - 3 years. She will receive her salary paid directly in GBP to her UK bank account.

She will have non domiciled "not ordinarly resident in the uk status", as she will be in the uk for less than 90 days per year. I'm strugling to understand the tax rules on the hmrc website...

Am I right in thinking she would be able to claim all or some off her tax back? If anyone has any experience in this, please post some info... it would be greatly appreciated.

Thank you

John_Pierpoint

Isn't it more "normal" to pay such ex-pat salaries into the Channel Islands (say).
What sort of organisation is employing her?

Shame it is not the United Nations gravy train?

Cook_County

So your wife is a non-dom who will be leaving the UK. For where? Will she be in full time employment in that jurisdiction with zero UK workdays?

Soubrette

Can you post in which country she'll be working - I believe different countries have different tax laws. For example Canada and the UK have a reciprocal tax agreement so you pay tax in the country you work.

Also (off topic sorry) I'm sure you're aware (but just in case) that she will not be entitled to NHS treatment (except emergencies) if she is not ordinarily resident in the UK.

love2learn

Cook_County wrote: »

So your wife is a non-dom who will be leaving the UK. For where? Will she be in full time employment in that jurisdiction with zero UK workdays?

The country is India. She will not work in the UK, but will have her UK salary paid in GBP to her UK bank account. Both of us are leaving the UK for 2 - 3 years and return only for 1 or 2 fortnight holidays.

Hope this helps...

TM1976

I don't think she is a non-dom, has she elected to be so? More likely she is non resident. When she leaves she needs to fill out a P85 and she may get some of the tax she has paid in that tax year back.

Cook_County

The company is of course itself taxable in India and you are personally liable to tax in India as well. There will be no UK liability providing you stay away from the UK past 6 April 2012 in the same full-time employment.

I have no idea if Indian tax is higher or lower than UK.

Tugela

Well ... Love2Learn. I hope you get it right. For 2 years my husband has struggled with the tax office and filled in TWO P85 and still he is waiting!!! He has been working outside of the UK for 2 years and comes home for one month (spread out) each year. Seems its the same scenario as my husband - his money is paid into a UK bank account in Pounds ........ but he still pays tax each and every month!!!

Cook_County

Tugela wrote: »

Well ... Love2Learn. I hope you get it right. For 2 years my husband has struggled with the tax office and filled in TWO P85 and still he is waiting!!! He has been working outside of the UK for 2 years and comes home for one month (spread out) each year. Seems its the same scenario as my husband - his money is paid into a UK bank account in Pounds ........ but he still pays tax each and every month!!!

Tugela - your husband or his employer appear to be evading tax in Romania. This may be a criminal offence so needs to be addressed by him with his employer.

Tugela

Cook_County wrote: »

Tugela - your husband or his employer appear to be evading tax in Romania. This may be a criminal offence so needs to be addressed by him with his employer.

To add a bit more - my husband has now been asked to sign a "delegation letter" by his company who has now enlisted the help of an agent in Romania to "bring his Romanian tax affairs up to date" (so says the letter)

What now happens to the tax he has paid into the UK ? Will he get this refunded once he has paid Romanian Tax?
Thanks

Mahmood_Reza

Based on information provided you will not be a non domiciled individual - Non dom = more of a permanent disconnection and you will retain domicle of origin, changing domicile is more probelmatic and difficult to alter.
You can claim potentially claim back the Romanian tax via double tax relief, you need to be aware of any double tax treaties between the UK and Romania