Working Overeas and UK Tax Liabilities (= HMRC Greed)

[configman]

But will you go running to the British Embassy if heaven forbid things go to tulip?

I understand your point but if Britain stopped allowing ICT's undercutting our value in the UK then there might not be so many expats and we are not in the UK claiming benefits but got off our backsides. It is also the expat community that promotes the UK as a highly skilled workforce that can bring work back to the UK. We also provide valuable local contacts to British companies who want to do business - I am regurarly contacted via linkedin for this. My current Chinese company is investing heavily in the UK influenced by its expats. When things went tulip during the volcanic cloud last year and thousands of British were left stranded in China and Hong Kong it was the British expat community who went to help the UK citizens so if things went wrong for us it would be nice if you helped us though I don't expect it as a right. There are benefits both ways.

[Gonzo]

HMRC seem to be grasping at straws to get money out of me when I'm not in the UK not using UK services?

Anyone know any way around this - the job isn't worth doing for the risks and hardship involved (for me) if I have to pay tax on this. It is the lowest daily rate I've accepted as a Project Manager?

Unfortunately, it is not so easy to shake off your UK tax residency.

If you are classed as resident in the UK then HMRC will demand tax on your worldwide income. The only way out of this is to leave permanently (P85 and stay away for one complete tax year).

I left the UK in the 2008/2009 tax year and HMRC still require me to send them a self-assessment tax return. I don't owe them anything because I have left permanently but they are still keeping an eye on me.

[george99]

When you leave you fill out this form:

www.hmrc.gov.uk/cnr/p85.pdf

If you don't return there won't be tax to pay, I presume. The prerequisite is that you intend to stay at least a full tax year out of the UK.

Cheers - I'll keep this in mind.

I'm looking to get shot of the UK as soon as I can sell the house - once that is done I'll be off. Thanks for the info.

[Ignis Fatuus]

I don't want to come back to the UK - the house is up for sale and I want out?
...had enough of bank-rolling the rest of the world.

Defence? What defence?
Education - parents paid for mine - and I paid for all professional qualifications. I have no children.
Police/ Fire - Council Tax (and I've actually over-paid and am having exceptional difficulty getting it back)

Sorry. I thought when you said

I would not be coming back to the UK until completion of my contract.

that meant that you would be coming back after completion of your contract.

BTW not liking the services that you pay tax for, does not get you out of paying the tax, not in any country I know of. Nor does having no children get you out of paying tax that goes to pay for education. Etc etc, not the real point anyway. The real point is: just go, really go for good, and you will not be resident any more. But if you go, while keeping one foot here, you will be.


You also said

HMRC have said that because I'm British and have relatives in Britain I'm described as "Resident"

AIUI this is not so. Being British does not make you resident. Having relatives in Britain does not make you resident.

Having your centre of economic activity in Britain does, so make sure that you can not be taken to have kept this. Make sure that you have unequivocally left for good.

As for the tax year in which you leave, in principle you could be taken as resident for that year, but in practice if you send the P85 and make it clear from the start that you are gone permanently, they will put you down as nonresident pro rate the time you are away.