Ex Pat / Non-Residency

david1234567891011

Hello All, I’m currently working abroad in a tax free environment and am reliant on the statutory residency test of working full time abroad. My 1 year contract expires in early Jan ahead of the full tax year expiry on 5/4. (Where I will have completed a full tax year).

I’m aware of the maximum 31 day gap in employment rule so I’m wondering if the following is acceptable to satisfy the ‘full time employment overseas’ void that would exist as HMRC rules. 

- set up a company in a free zone in Dubai and a company bank account. 
- fund the company bank account.
- employ myself with a contract employment satisfying the average 35 hours a week. 

- make nominal salary payments from company bank account to myself in accordance with the terms of my employment contract. 

N.B I would have no ‘real’ income from other sources. 

Is this strategy not accepted by HMRC or alternatively am I concerned about nothing? I imagine that a self assessment would need to be provided on my actual return to the Uk with evidence of employment and bank statements? 

Many thanks for any advice. 

Inbetweeners

I would rank your proposal somewhere between dodgy and fraudulent.

I would use some of that tax free cash to get some professional advice rather than some strangers opinion.