Returning to the uk

andykb

Hi currently working away(zero UK income tax) and I'm struggling to get my head into when i can return to the UK with minimal impact to my tax.

This is my scenario:
I left june 2014 and submitted a p85 for that year 14/15. Now I'm into 15/16 tax year. Can i return early in the 16/17(april/may/june) tax year or do i need to go all the way through to 17/18?

Spidernick

Return 6 April 2016 or later and you would have broken UK tax residence whilst abroad and so those earnings would not be taxable (assuming you will have had no more than 90 days a UK tax year in the UK or 30 UK work days each year - lower limits for 14/15, being the year you left and a split year).

andykb

Thanks thats what i was hoping!! i assume if its a little longer say May/June the tax payable would be be payable if i headed back after 6th April?

Spidernick wrote: »

Return 6 April 2016 or later and you would have broken UK tax residence whilst abroad and so those earnings would not be taxable (assuming you will have had no more than 90 days a UK tax year in the UK or 30 UK work days each year - lower limits for 14/15, being the year you left and a split year).

Spidernick

If you came back in May or June next year then you would become resident around the time of your return (under the Statutory Residence Test (SRT) this could depend on when you starting working, your 'only home' position, etc. but it is likely to be the day you return or shortly thereafter). If you are not tax resident at the beginning of the year (i.e. you qualify for the split year, which you should do) then those overseas earnings in the early part of the 16/17 UK tax year should also not be taxable in the UK.

For the ins and outs of the SRT see here:

https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt