R85 R105

TCA

Cook_County - can I please ask your opinion as to whether it is necessary to inform HMRC immediately when leaving the country permanently or if as a self employed person it is acceptable to do it retrospectively via SA?

I am moving to Thailand next month with a view to staying permanently for several years. I am reluctant to put things in motion regarding non residency (split year treatment claim etc...) in case I decide 6 months down the line that it's not for me, so wonder if I can effectively inform HMRC in my 2007/08 tax return (thereby granting me more time) as I believe there is scope to do so?

For the record my 50% tax payment on account in January 2008 would cover my tax bill from April to October 2007, so no worries on that front.

Thanks for any pointers.

Cook_County

TCA - You are correct on the UK front because the P85 is non-statutory so you do not have to advise HMRC until you file the return unless you have UK rental income. You may have to register with the Thai authorities in any case.

TCA

Thanks C_C. That's what I wanted to hear. I have no UK rental income.

Thailand is a bit tricky as I will have no authority to work there (my long term visa is for visiting friends/family only) and this is the best I can get currently unless I take up paid employment and get a work permit, which I don't intend to do and is difficult anyway. Next year I will technically be a resident of Thailand (staying more 180 days p.a) and liable to pay tax on income from sources in Thailand as well as income from foreign sources which is brought into Thailand. So I'll live off savings I bring in to the country when I move, which I understand is permissable and done by many. A sufficient amount can then be transferred in from savings each year (or brought in again when renewing visa in UK) and this does not cause concern for the authorities.

But I will continue to have income from my current self employment (commission from internet property sales - literally a few hours work a week) which originates mainly in Spain and Morocco and I plan to get paid to an offshore account in Isle of Man.

So I have 3 questions:

1) Does this sound like I may be able to avoid tax altogether?

2) If so, any suggestions as to an address to put on my invoices? Would using my parents UK address have any bearing on attempts at non UK residency - it would be for correspondence only (of which there isn't any) and would just look better for appearances and continuity.

3) I believe I can still pay class 2 NI from overseas (as opposed to voluntary class 3) to keep up my basic pension contributions. Could I therefore just continue my direct debit for self employment (on the basis that my UK self employment could resume in the future or was just "dormant") or do I have to officially end that self employment when I go for non-residency and re-apply to pay NI.

Sorry for the complicated questions but I've been researching for weeks and can find no good answers to all this. You have been very helpful so far.

Thanks for any opinion offered.


TCA