UK Tax

[schit.furbraen]

I need to know what happens if you return to the UK, with 2 months left of the Tax year, having lived and worked the rest in an european country.. .With 6 months earnings now well spent.. .I am a UK resident, and only estayed out 1.5 years.. .Am I Liable to tax? and how much? . .Please help, the inland revenue booklet is not written for normal sitizens!! and the helpline couldn't help!!

[FL310]

this issue is very easy.. .You need to stay one complete tax year out of the country, i.e. from 06.04 until 05.04 both days included.. .If you have the a.m. 1 year fact, than you can claim everything involving the time before that year and after that year as well.. .This, even if you have already completed the return for a specific year, just send an amendment. . .I did the same and faced very helpful and friendly advise at the IR

[schit.furbraen]

So, Am I better off staying out till I find some work back home? . .Am I liable to tax on What I earned during my residence away from the UK?

. .Thanks for any info.

[FL310]

Even if you are employed in the Uk and even if you are paid in the Uk, as long as none of your duties is performed in the Uk, you are not liable to tax in the UK under the given info above.. .You can be in the country for less than 92 days.... .BTW, if you check in in the Uk or you fly into the Uk and leave on a turnaround (also nightstop or weekendstop etc...) and your regular base is abroad, than you still fall under the regulation I told you.. .You are of course liable to tax in the country where you stay....but this is a different story.

Forgot something. The 92 days do not include the days of your positioning. Look at this:. .Tuesday flight into Uk, Wed + Thu are off, Friday you start with positioning or you take over a flight. This counts as 2 days, not as 4 or 2.5 or something else. A day in the tax law starts at 00:01 and ends at 24:00....and only full days are counted.

[ 12 February 2002: Message edited by: FL310 ]</p>

[schit.furbraen]

Thanks for that. Great help.. .I'll have to declare anyway, just thought I might get A big bill since I'm broke anyway.

[Lucifer]

I think you can apply for split-year treatment, though am not sure as I do not have to hand the book explaining it all. It is very simple actually when you get the hang of it, but most people are not moving in and out of the country al the time!

[chrishowley]

I think:

Split year treatment is only available in the year of leaving or returning to the UK before or after a period of not being resident (i.e. before or after a year where you are out of the uk of the whole tax year (as defined earlier in the thread).

If you return in within the tax year (i.e. about now) then you will have to submit a return and pay tax in the UK. However in most cases you will get double taxation relief. That is you can deduct any tax paid abroad from your UK tax bill. If you paid more tax abroad than you would in the UK then you will pay nothing in the UK.

[bluskis]

I don't know if there are special rules for pilots and sailors, but I believe that if you were non resident for a whole tax year while working abroad, time spent in the UK, not working, up to 180 days in any one year, and not exceeding an average of 90 days in any four year period,should not make you liable for UK tax. It may be different if you return with the intention of staying in the UK.

[FL310]

bluskis...no need for an average within 4 years...it is 1 complete tax year required. The time spent in the year preceeding the full year as well as the time after that full tax year will count as well.. .The full tax year means that a maximum of 92 days are spent in the UK, these days do not include the days of travelling.. .A tax relief can be claimed for any year where at least 186 days have been spent abroad.... . <img src="rolleyes.gif" border="0"> :) <img src="cool.gif" border="0">