Help for moving abroad

edited 30 November -1 at 1:00AM in Cutting Tax
15 replies 1.6K views
henke53henke53 Forumite
9 Posts
edited 30 November -1 at 1:00AM in Cutting Tax
I am just on the brink of moving(probably just into the new year) to thailand to live and at the same time moving to work in equatorial guinea. I will be on a 28 day rotation.

I have a p85 form i need to fill in to tell the tax that i am moving abroad.

Just wondering where i stand with taxes for next year, i have been told that if i am in the country for less than 90 days next year then i will pay no UK taxes. Is this true?

And is there any other things i should be aware of tax wise?

And advice or help would be much appreciated
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Replies

  • Correct, if you are going to be in the UK for less than 90 days then you will not need to pay UK tax. Further useful info available on HMRC website.
  • Cook_CountyCook_County Forumite
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    I would suggest zero days in the UK would be a better measure given that
    you will not be working in Thailand. I assume you will be paying tax there and have a visa that lets you stay permanently. The 90 days is a myth that is not supported by case law.
  • thethe Forumite
    101 Posts
    Ok firstly, Thailands immigration laws change so frequently thateven the immigration officials intepret the requirements differently, it can become an infuriating nightmare, for example you can only spend a total period of 90 days in a 6 month period on the 30 day arrival stamp.

    As for your tax situation I would recommend speaking to the tax office oversess department at Nottingham.

    For a thorough grounding in the Thailand situation visit the following https://www.thaivisa.com

    and good luck with the thai people
  • mark5mark5 Forumite
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    The 90 days comes from the wording that any person who spends over 90 consecutive days in the UK is classed as a resident no matter what the circumstances.

    While growing up my uncle worked in Saudi and i remember he only returned home twice a year for short periods despite having lots of annual leave and free flights to the UK.
  • BritRaelBritRael Forumite
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    Correct, if you are going to be in the UK for less than 90 days then you will not need to pay UK tax. Further useful info available on HMRC website.

    It's an average of not more than 90 days in a rolling 4 year period, with a maximum of 183 days in any one year.

    More info here (and sample calculations):-
    http://www.hmrc.gov.uk/cnr/faqs_general.htm#6
    Marching On Together

    I've upped my standards...so up yours! :)
  • gld73gld73 Forumite
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    I live and work in Cambodia for a charity and only go back to the UK twice a year, a total of about 42 days. Even though I filled in a P85 before I left (Jan 09), I'm still paying tax - however, the charity I work for is based in the UK, so even though all the other employees are tax free, HMRC aren't convinced about me for some reason! So will you getting paid abroad by a foreign company? or are you going to be working in Eq. Guinea for a British company and still getting paid to a UK bank account? If it's the latter, don't assume that filling in the P85 and being out of the country for more than 90 days/year will automatically mean you'll get paid tax free. If it's the former, you should be okay.
  • BritRaelBritRael Forumite
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    gld73 wrote: »
    I live and work in Cambodia for a charity and only go back to the UK twice a year, a total of about 42 days. Even though I filled in a P85 before I left (Jan 09), I'm still paying tax - however, the charity I work for is based in the UK, so even though all the other employees are tax free, HMRC aren't convinced about me for some reason! So will you getting paid abroad by a foreign company? or are you going to be working in Eq. Guinea for a British company and still getting paid to a UK bank account? If it's the latter, don't assume that filling in the P85 and being out of the country for more than 90 days/year will automatically mean you'll get paid tax free. If it's the former, you should be okay.

    Then convince them :)

    It is not where you are paid from that counts - it's the number of days that you spend in the UK. I've been working tax-free overseas for donkies years (non-resident for tax purposes) and have always been paid into my UK account and sometimes by a UK company. I had been working several years in Saudi and not realising that I didn't have to pay tax on interest on my bank accounts. I contacted HMRC who advised me to fill in an R85 form and send them the bank details. When I returned 6 months later there was a cheque waiting for me (delivered 5 months earlier! :)). Go and see them. In my experience they are human and very helpful. :)
    Good luck :)
    Marching On Together

    I've upped my standards...so up yours! :)
  • TM1976TM1976 Forumite
    717 Posts
    It's probably the charity who are getting this wrong rather than HMR&C as they are the ones who deduct the tax from your salary and pay it over. They should just pay the amount gross to you. For 09/10 they can probably correct this through payroll but for 08/09 you will have to take this up with your tax office.
  • BritRaelBritRael Forumite
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    jimmo wrote: »
    ....You have gone abroad to work but do not seem to have completely cut your ties with the UK.
    Within this section there is, what we used to know as “the golden rule”, that in order to establish yourself as Not-Resident you need to spend a complete Income Tax year outside the UK. That is: absolutely no visits to the UK in the Tax Year. Once you have established your Not-Resident status you can then start visiting again.....

    As I stated earlier, I have been working overseas tax-free (non-resident for tax purposes) for many years. I used to be a member of a couple of pay-to-view expat sites, which give a lot of professional tax advice and also have very active forums for expats to discuss similar questions to the OP. However, in all the years that I've worked overseas, and with all of the Brits that I've worked with (and still do) I have never ever heard of this 'rule', or anybody that has complied with it. What we do comply with is the so-called '90-day rule' which I touched on earlier. Personally, I've never achieved a complete tax year out of the country (14 days 'in' is the closest that I've got to that).

    Could you explain who the 'we' is who use this rule? It seems to contradict the 90-day rule.
    Marching On Together

    I've upped my standards...so up yours! :)
  • gld73gld73 Forumite
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    Sorry to the OP, I didn't mean my reply to hijack the thread, I was just explaining that, from personal experience, it's not 100% certain that you get paid tax-free if you're outside the UK. Thanks to the people who replied to my brief post here - but the full sorry saga is on another thread, explaining that I have been in contact HMRC and still haven't got it resolved.

    http://forums.moneysavingexpert.com/showthread.html?t=2092233&highlight=

    Thanks.
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