Help for moving abroad

edited 30 November -1 at 1:00AM in Cutting Tax
15 replies 1.6K views
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Replies

  • jimmo wrote: »
    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.

    This in incorrect. You may visit the UK at anytime after your departure. You just need to ensure you dont spend more than 183 days in any one year or an average of over 91 days per year over the least 4 years. note: counting days for this average count only starts once you leave the country.

    Also, your residency status upon departure relies on your intention. If you intend to be out the UK for a complete tax year you will be non resident from the day folling your departure. You must ensure you do actually remain out for a whole year otherwise your resiency position will be changed rectrospectively.
  • BritRaelBritRael Forumite
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    jimmo wrote: »
    ....When a person leaves the UK to take up employment abroad the correct procedure is for that person to complete a P85. Here is the current version
    http://www.hmrc.gov.uk/cnr/p85.pdf
    If you take a look at the form in section 1 there is the specific question
    “If ‘No’, do you intend to live outside the UK for a full tax year starting on 6 April after your departure? ....

    Agreed...but if you then read the next line; "if also 'no', when do you expect to return..". Immediately following this question, you are also asked what periods you intend to return over the next 3 years.

    This is where the calculation (the 90-day rule) that I referred to earlier comes in. In the case of the OP, as I said before, he is (currently) complying totally with this requirement and therefore should not be liable for tax. His workmates (on the same rotation) are being handled correctly, the OP is not.

    You are quite right that he appears to be caught up in red tape, but I am sure that once it is sorted he will get a refund anyway, so in the meantime he can look on it as a pseudo savings account :)
    Marching On Together

    I've upped my standards...so up yours! :)
  • jimmo wrote: »
    Would you mind explaining what exactly is incorrect?
    Is it me or HMRC that you deem to be incorrect?

    I was just pointing out the inaccuracy in the part i had quoted. The key line being:

    "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"

    I believe the part about absolutely no visits is incorrect. I don't know if you wrote that or HMRC.
  • TM1976TM1976 Forumite
    717 Posts
    Just to clarify, Jimmo is incorrect here. This is where the "90 day rule" comes in. You can spent up to 91 days on average in the UK without being resident.

    There is no rule that says you must not set foot inside the country.
  • edited 12 December 2009 at 6:04PM
    Cook_CountyCook_County Forumite
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    Part of the Furniture 1,000 Posts
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    edited 12 December 2009 at 6:04PM
    TM1976 wrote: »
    Just to clarify, Jimmo is incorrect here. This is where the "90 day rule" comes in. You can spent up to 91 days on average in the UK without being resident.

    There is no rule that says you must not set foot inside the country.
    Sadly there are few rules at all, as the UK does not have a statutory residence test. The Courts therefore frequently judge on cases of residence and they are often ignoring HMRC guidelines at present (I suggest searching on Google for reports of the Grace and Shepherd cases for more information).

    The 91 day on average test has no statutory or case law basis and is therefore a high risk rule to rely upon.

    Spending zero days in the UK is a better measure if certainty is desired, particularly if the taxpayer has settled in a new jurisdiction for residence under the laws of that place. I alo suggest lobbying your MP for a decent set of UK laws that can actually be understood!

    Previous posts also mention "intention". Notwithstanding long-standing HMRC guidance, the ongoing Genevose and Gaines-Cooper cases demonstrate that intention is not always a deciding factor as the Courts prefer to look backwards at what happened over a period of years as against relying on an intention expressed up-front.
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