Can any LHR crew recommend a tax agent?

[DASHSYD]

Hi everyone!

Hope you can help now it's time for us all to complete our tax returns (something which has always confused me!).

Basically, I am looking for a tax agent in London who specialises in preparing tax returns for airline crew so that I may gain the maximum refund possible. Apparently there is some rule which states if you are out of the UK for 183 days or more in any financial year you pay less tax and this is what I need advice on...

If anyone here can give me any recommendations for such a tax agent I would be most grateful!

Paul

[apaddyinuk]

Dash...If you get any info could you pass it on to me too?? Iv always heard of this rule but never actually spoke to anyone in work who knows anything about it.

[ozskipper]

There's a crew member in the LHR base.... Ask around, someone will tell u his name and he's very good at tax advice....

[DASHSYD]

I know who this guy is but don't want to bother him as I have heard everyone is on his back. So, I'll have to settle for an accountant instead. Ozskipper, do you remember much of the advice that was given to us by Ernst and Young when we left home? The 183 day ruling is confusing and I just want as much cash back as possible!

[ozskipper]

Actually, from what I gather I think he's doesn't mind helping out providing he knows you. Seemingly, loads of people who have never spoken a word to him before dumped their tax returns on him expecting him to do it! Funny, typical crew :) But in any event, this is what he told me.....

Download a program called Taxcalc 2006 (www.taxcalc.com) - you need the individual return (download) for £24.95

Register with Inland Revenue for Online Self Assessment (www.inlandrevenue.gov.uk) and wait for your activation pin to come in the mail.

To get money back you need to qualify as being either non-resident (not living in the UK) or Not Ordinarily Resident (living in the UK, but out of the country for more than 183 days, including holidays).

Count your number of total work days (every day of a pattern, standby, ground duties, training and eps).

Then count the number of NON-UK work days. Ie, the days you are away in port, NOT including day of departure and day of return. Ie 4 day BKK (2 NON UK work days, but 4 TOTAL work days); 5 Day SIN (3 NON UK work days, but 5 TOTAL work days).

Once you've done that for the entire financial year, you then need to work out how much of your yearly salary is "Foreign Earnings Not Taxable In The UK".

You do this by dividing NON UK Work Days by TOTAL Work Days (ie, 109 / 230 = 0.47) then multiply this by your salary (0.47 x £18,460 = £8748). This is the figure that is considered to be Foreign Earnings Not Taxable In The UK and it is this amount that will get you some money back.

Put that figure into the correct box in TaxCalc and you'll get a refund.

[DASHSYD]

Thanks ozskipper, you have made things very easy for me!!!

One question though - how do I factor in my holidays into the calculation so I exceed the 183 day limit?

Thanks again,

Paul

[ozskipper]

Dash - holidays out of the UK count towards satisfying the not ordinarily resident criteria, but you don't count them as work days..... so if you've been to AMS or PRG or JFK for 3 weeks, then that counts as being out of the country and towards your 183+ tally.... Make sense?

Studi - I think I know what your driving at.... But, if your foreign earnings forms 60% of your salary, then it is not taxable in the UK and therefore any tax paid on it is refundable. The remaining 40% of your salary which is taxable in the UK is subject to the appropriate tax rate dependent on the amount you have earnt for the year. For example if you earnt £100,000 for the year, then £60,000 is not taxable, however the remaining £40,000 is taxable and would be taxed accordingly..... Make sense?

[DASHSYD]

Hey ozskipper!

Sorry to bother you once again but I am just hopeless with things like tax...

I'm sitting down to calculate all my work days...above you mentioned that holidays count towards the 183+ tally but how do I factor them into the calculation when it only involves NON UK WORK DAYS/TOTAL WORK DAYS? Similarly, I arrived in London in May 2005 so how do I go about taking into account that I wasn't in the UK for all of April 2005?

Thanks!

[DASHSYD]

...also, do I use the gross salary figure for the multiplication or the net figure???

Thanks again ozskipper!

[flymiss]

www.mrtax.co.uk used by many non res aircrew from LHR. Based in Leicester but there is no need to vist as paperwork done by post. Speak to Daryl or the boss himself,Peter.

[ozskipper]

Studi:

The tax rate is based on the lower figure of £40,000 as the remaining 60% of your salary is foreign earnings not taxable in the UK. However, as you correctly state, you get taxed on the full £100,000 during the tax year. But this is why you get a tax refund! If you were being taxed for £40,000 then you'd be paying the correct amount and not subject to a refund :)

Dash:

Ok... There are two tests that need to be satisfied as to whether you qualify for a refund (there are a number more than this, but for sake of time, sanity and general well being I'll cover only what you need to know!!). One is that you are not ordinarily resident - this is satisfied by being out of the country for more than 183 days in the tax year. This can be made up of trips away (for work) or holidays out of the country. In determining your 183 days you can count the day you leave and the day you return to the UK as non uk days (but not day return trips).

Once you satisfy the 183 day rule, then you can move onto the calculating your percentages of what portion of your salary is classed as foreign earnings not taxable in the UK.

You need to work out your total work days for the year and your total NON UK work days. It's the total NON UK work days which are not taxable. You can't count holidays as being NON UK work days.

And yes, you use your gross salary for the figures.

Cheers

[GalleyChick]

Ozskipper - I was going to post that same reply you posted above about TaxCalc - Saw it on the same forum as you did. I downloaded taxcalc and filed my tax return today. got back 2005 pounds yayyayayayayay

[ozskipper]

LOL That's coz the same person posted it :)