Leaving the UK Tax

If you are leaving the UK on a working contract there are a few things you need to consider which could save you money.

If you go to live or work abroad and become non-resident in the UK, you might still have to pay UK Income Tax - but only on your income from the UK. If you do need to pay, you may need to complete a Self Assessment tax return.

For HMRC to grant provisional ‘Non-Resident’ status to anyone who leaves the UK to take up a permanent full time working contract overseas you must ensure you:

1. The contract is full-time and will span at least one full UK tax year
2. During the time of the contact you will not spend more than 183 days in one UK tax year or more than 91 days on average back in the UK>
3. There are no breaks in your contract
4. There is a ‘double taxation agreement in place between the UK and the country in which you are to work
5. You must complete HMRC form P85 to allow HMRC to consider your UK resident status

The above are the very basic steps you need to take to be classed as non-UK resident for the period you are out of the UK and that any income earned will be exempt from UK tax.

Tax Advantage are able to offer clear advice to anyone thinking of working overseas, it is strongly recommended that you seek tax advice before embarking on any overseas contract to ensure you understand what tax if any you may be liable to in the UK on your foreign earnings.

Where can I get more information?

Tax Advantage are able to advise on matters on Residency and Domicile please use the contact form should you require any help or advice.

HM Revenue & Customs – please follow the link

http://search2.hmrc.gov.uk/kbroker/hmrc/forms/viewform.jsp?formId=3717

Directgov

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_078447

Britons living overseas

http://www.direct.gov.uk/en/BritonsLivingAbroad/index.htm