When working or moving abroad, taxation can be very complicated.
Careful planning is required to ensure you are following the most effective form of tax planning for your circumstances and proof has to be given to HMRC about your residency status for tax purposes.
We provide specialist tax advice for Ex-
Contact us if you would like help & advice about working or moving abroad, or if you would like us to complete your Tax Return for you.
When to complete a Tax Return whilst working abroad
Leaving the UK to work abroad as an employee
If you are leaving the UK to work abroad full-
you are leaving to work abroad under a contract of employment for at least a whole tax year (6th April to 5th April the following year)
you have physically left the UK to begin your employment abroad (e.g. not left to have a holiday before you begin your employment)
you will be absent from the UK for a least a whole tax year
your visits for the UK after you have left will total less than 183 days in any tax year, and average less than 91 days in tax year (taken over the period of absence up to a maximum of four years).
If you satisfy all these conditions, you will not pay UK tax on any employment duties which you carry out wholly abroad.
If you do not satisfy these conditions, you will remain resident and ordinarily resident in the UK and liable to UK tax on all UK income.
If you are not resident in the UK, you will still pay UK tax on any income or profits that you carry out wholly in the UK as well as any pensions & investment income you receive from UK sources.
You might be able to claim under a Double Taxation Agreement (DTA) for your UK earnings or pensions (including taxable UK Social Security benefits) to be exempt from UK tax.
If you rent out your UK property, you need to make an application to receive UK rental income without deduction of UK tax.
UK resident -
Not ordinarily resident -