Overseas NT coding status, and for following year?!?!?! please help clarify!!!

dancingdandare

I have a income tax question for expats.

Currently i am working outside the country for a middle eastern company. I have been seconded from a UK based company, but i am no longer on there pay role (i.e. i am on overseas payrole). I sent a P85 form to the inland revenue so that i could get a NT coding, i was instructed to put the address of the UK company down. I am coming to the end of the tax year and i have still not received anything to confirm a NT coding, yet i am completely in accordance with the guidelines set by the inland renvenue to get no tax status. Does anyone have any suggestions on how i should proceed, plus note that i am likely to be out here until the middle to the end of this year.

On another point i know if i am out of the country for a full tax year and i do not exceed the number of days allowed in the country...ect....then i will be granted No Tax Status. For the following year, lets say i work 8 months and return to the uk end of november. Will i be taxed on the income from April 08 til november 08. Or will it start a fresh on return? PLease help very confusing

Many thanks to all who reply

fengirl_2

if you are no longer on the UK payroll, the Uk company should have issued a P45 to you and you would use the P85 to reclaim the tax overapid in the current tax year. The Saudi company, having no relationship to the Uk should not therefore be deducting tax and NIC. The fact that they seem to still be doing this indicates that you are still on the UK payroll, otherwise, where is your tax money going? You need to clarify this with your company first.
Once your non-resident status is established, it rolls on from tax year to tax year until the date you finally return to the UK.

dancingdandare

sorry i must of not been clear. I am not paying any tax or NI while abroad. I am just making sure than when i do return i have taken all measure to ensure i do not get hit with a big tax bill, i.e following all the rules, sending off P85. My query is can i get a NT coding if i am employeed by a middle eastern company? or do i not need to worry. Plus for the next year, if i return early will i pay tax on everything i have ended from April 08 til the time i return, i.e given that i return before the end of the 08-09 tax year?

thankyou again

fengirl_2

You can't have code NT issued to an overseas employer - they are outside the juristiction of HMRC. If you were working abroad for less than the tax year, you would be responsible for paying the tax due on your overseas earnings.
If you have been out of the UK for at least a complete tax year, you should be regarded as not resident, although HMRC would need to give you a ruling on this - you should ask them if they havn't already. This non-reisdent status then lasts until you finally return to the UK, which could be at any point in any tax year. Your overseas earnings while you are non-resident will not be liable to UK tax.

ohbrightone

If you were on a SECONDMENT, i.e. still hired by the UK company, you should have been paying UK Class 1 NIC for the first 52 weeks of your assignment....it should have been deducted from your pay....mandatory social security rules I'm afraid.