Tax advice
Hello. I am a UK national. I moved here in January 2010 and have a contract up until May 2011. I dont think I will be getting kept on after this time. I am wondering about tax status if I have to go back to the UK in May 2011. I have filled in the P85 in January 2010 and my visits to the UK will be less than 40 days per tax year. I dont have a wife or kids. Will I be exempt from tax for the period I have been here? My accountant uses lots of language like 'maybe' and ' could possibly be tax free' but ant get a straight answer. Any advice would be most welcome. Thank you all.
You accountant is probably using maybe in case HMRC tryto use the 3 yr work contract guideline a recent addition I believe to the guidance notes.
If you have been paid from Qatar that should make it clearer, if you have to claim it back cos you were paid PAYE in the UK that may cause you some problems as it's harder to get it back from them.
Remeber though that if you get another job over here or anywhere you have to start the full tax year eligability thing again as it won't be continuing employment.
Also remember you are not paid Tax Free you pay local Income Tax. The rate of Income Tax applied is just 0%.
Wow that was quick. Thank you dweller. Tahnks indeed.
if you are out of the UK for a full tax year, you are exempt for that year.
This site should sort you out:
http://britishexpats.com/articles/finance/uk-tax-residency-and-domicile/