Non-resident status for expats

Pablo-UK-expat

Hi all

First post so please be nice!

I have been offered a 1 year contract in UAE beginning Sept 2012. I understand that, to be classed as non-resident for tax purposes, I would need to be working abroad for at least the full tax year. Therefore, if I return to the UK after this 1 year contract, all earnings would be liable for taxation.

However, I am also hoping to secure another 3 year contract (different country, different company), to follow directly from the 1 year contract.

My question is: will this second contract be sufficient to make me non-resident for the whole period I will be working abroad? Or would I still be classed as resident for the first contract, but not for the second?

Many thanks in advance for any advice!

Pablo

Pablo-UK-expat

Well, I called HMRC earlier today and now I understand why no one here has replied to this. I spoke to two different advisers and neither was able to answer my question. I've been asked to put it in writing and send to HMRC. Problem is, I have to accept/decline the first job pretty quickly.

shrinkydink

Hi Pablo

Provided one job follows on from another and you don't return to the UK to work in between contracts, you should be OK to satisfy the requirements to break residency.

You might want to try calling HMRC's Personal Tax International office, they generally deal with people who are inbound to the UK, but might be helpful still - 0161 261 3398.

RetiredInThailand

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

It's more the notion of retaining your home/family and financial interests in the UK that is likely to affect your residency status in this case, and this is why no one at HMRC will give you an answer over the phone; they need more details.

That said, from what you describe you should be considered non-resident during both the first and second contract.