I've been away from the UK for a couple of months and ended up in Hong Kong. Having nothing better to do, I started looking for a permie job (I know, I know... 
) and it looks like I'm going to get an offer of one to start in mid-Oct 
!!
Having read through a number of posts on the subject, I thought I would post my assumptions on my tax status and ask the CUK panel if they can spot any holes. I'll also be getting in touch with my accountant just to get his thoughts as well.
My situation is this:
A) I'll probably be in the UK for around 110 days during this tax year. And then probably 10 days a year for the foreseeable future.
B) The offer (touch wood) is for full time employment in HK.
C) Although there's a Double Taxation Agreement between the UK and HK, it won't in come into effect until next year.
D) No wife or kids. Only parents and siblings in the UK.
E) I have a rental property.
F) I also have a (mortgaged) flat which is my main residence. My preference is to sell, but I may rent it out or leave it empty.
G) Since April, my UK income has been about £3500 and £10K in divs. With a bit of care, I can keep my div payments low so that my liability for 2010/11 could actually be zero.
My questions are:
1) Do I really have to fill in P85? I think I'm legally obliged to.
2) Will I be treated as non-resident? The number-of-days rule is on my side but having an empty property may count against me as Hector could argue I haven't cut all ties.
3) Without the DTA in force, will HMRC ask for the difference in income tax? I don't believe they will but this is Hector we're talking about.
4) Once I'm properly non-resident, can I pay myself big dividends instead of doing the closing-down-company route? This seems to be more efficient as HK doesn't tax divs while I'd have to wait five years before CGT is no longer liable. Alternatively, I could keep the divs moderate over the next couple of years but where's the fun in that?
The thoughts of the panel is gratefully appreciated.
TaM.
) and it looks like I'm going to get an offer of one to start in mid-Oct !!Having read through a number of posts on the subject, I thought I would post my assumptions on my tax status and ask the CUK panel if they can spot any holes. I'll also be getting in touch with my accountant just to get his thoughts as well.
My situation is this:
A) I'll probably be in the UK for around 110 days during this tax year. And then probably 10 days a year for the foreseeable future.
B) The offer (touch wood) is for full time employment in HK.
C) Although there's a Double Taxation Agreement between the UK and HK, it won't in come into effect until next year.
D) No wife or kids. Only parents and siblings in the UK.
E) I have a rental property.
F) I also have a (mortgaged) flat which is my main residence. My preference is to sell, but I may rent it out or leave it empty.
G) Since April, my UK income has been about £3500 and £10K in divs. With a bit of care, I can keep my div payments low so that my liability for 2010/11 could actually be zero.
My questions are:
1) Do I really have to fill in P85? I think I'm legally obliged to.
2) Will I be treated as non-resident? The number-of-days rule is on my side but having an empty property may count against me as Hector could argue I haven't cut all ties.
3) Without the DTA in force, will HMRC ask for the difference in income tax? I don't believe they will but this is Hector we're talking about.
4) Once I'm properly non-resident, can I pay myself big dividends instead of doing the closing-down-company route? This seems to be more efficient as HK doesn't tax divs while I'd have to wait five years before CGT is no longer liable. Alternatively, I could keep the divs moderate over the next couple of years but where's the fun in that?
The thoughts of the panel is gratefully appreciated.
TaM.
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