Tax implications on returning to the UK

[roll_over]

Hi guys,

Anyone who has been axed recently or left of their own accord able to share what they know about the tax implications on us returning back to the UK. I am hearing differing things such as I might be liable for tax on my earnings since April, or my EOSB. This doesn't make any sense to me since they were all earned before I was made redundant and earned outside of the UK.

I do not really trust financial planners or advisors in the UK, but ones abroad even less so!

Any input would be appreciated.

[Squawk 6042]

Provided you have been non-resident for at least a complete tax year previously (19/20) you can take what is called split-year treatment for 20/21 where you will be officially classed as UK resident for that tax year but will in fact be treated as non-resident for the portion of the year up to when you return. To avoid complications it is best to make sure you receive all you outstanding payments before you return so that it is received in the non-resident part of the tax year.

See this HMRC document for all the details: https://www.gov.uk/government/public...dence-test-srt

[HowardB]

You need to take professional advice on this subject. Squawk 6042 is correct but this applies but only for a number of years. After a period the split year treatment option is no longer available and you become taxable for everything earned in that tax year.

To give you a brief background, I am not aircrew, but was working in Qatar for 8 years until being laid off this March. I was already planning to retire next year so I was investigating the HMRC rules to ensure no nasty surprises. According to my UK accountant they are not straightforward and the only way of being certain to avoid being taxed was to spend less than 26 days in the UK in your final tax year.

[HowardB]

Following on from my last post, I came across this which helps checking if you are going to run into issues with the HMRC when you return to the UK:-

SRT: Statutory Residence Test Toolkit

Depending on the number of tests you tick, the time you are allowed to spend in the UK varies between 182 days & just 16. I found this toolkit useful since in my case I ticked two boxes and was in the UK for 49 days during the 19-20 tax year. This confirmed that I remained non-resident for that period.

Cheers

[felixthecat]

How long after the last day of service or visa cancellation is the Provident Fund paid into your nominated overseas bank? If you return to the UK and it is after you arrive back That the money is received are you then liable for tax on it since you are now resident when the money is received?

[Craggenmore]

You won’t have to pay any UK tax on the PF, as it’s been earned whilst you are non-resident (+5 years away), and you can bring it into the UK without any further tax consequences. You will be taxed on your UK-source income only up to the point when you return to the UK and thereafter on your worldwide income/gains (claim split year treatment on the 2020/21 return).

(Please do your own research though!!)