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Tax implications for a role in Dubai

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    Tax implications for a role in Dubai

    Hi All

    I had taken a fixed contract role in Dubai and had moved to Dubai in May leaving my family here in UK. Since I left in May, I think I have become a non-resident and hence not liable to pay tax in UK for this tax year 2018-19. My question is can I send money to my family here in UK for monthly expenses and will that be taxed? And also after my contract ends in May 2019, and when I move my earnings back to UK next year, will that be taxed? If yes what is the percentage? Is there any other option available for an expat?

    #2
    If your family is in the UK it probably will be taxable. Your residency is where your family is. In order for you to be non-resident you need to move the family out to Dubai and set up your main home in Dubai.
    I'm alright Jack

    Comment


      #3
      Out of interest, is this pertinent only to Dubai situations?

      I only ask as a friend is working in Kuwait and his family is still resident in the UK. As for tax purposes, he was told by the HMRC he would be tax free if a whole FY outside of the UK was completed, and he would remain thus until he returned irrespective of what month of what year he returned.

      Comment


        #4
        Originally posted by BlasterBates View Post
        If your family is in the UK it probably will be taxable. Your residency is where your family is. In order for you to be non-resident you need to move the family out to Dubai and set up your main home in Dubai.
        This is not necessarily true, you can easily be non resident for tax purposes whilst still having your family in the UK. I would advise the OP to read RDR3 (search HMRC RDR3) which is a very comprehensive guide to non residency and also take specialist advice on the matter, especially when considering returning to the UK.

        Martin
        Contratax Ltd

        Comment


          #5
          Originally posted by prasadkonuri View Post
          Hi All

          I had taken a fixed contract role in Dubai and had moved to Dubai in May leaving my family here in UK. Since I left in May, I think I have become a non-resident and hence not liable to pay tax in UK for this tax year 2018-19. My question is can I send money to my family here in UK for monthly expenses and will that be taxed? And also after my contract ends in May 2019, and when I move my earnings back to UK next year, will that be taxed? If yes what is the percentage? Is there any other option available for an expat?
          Sorry a bit of offtopic. I am interested in moving to dubai in future, is it difficult to find good contract there? I am java dev, are you?

          Comment


            #6
            Originally posted by freddy1777 View Post
            Sorry a bit of offtopic. I am interested in moving to dubai in future, is it difficult to find good contract there? I am java dev, are you?
            Big Data tech will get you a job there easily. I got an offer recently for 38-40K AED per month, but I couldn't accept it as my current rate is far better here.

            Comment


              #7
              If you leave the UK to work full-time overseas, your are provisionally UK Non-resident, so pay no UK tax or NI on your earnings (even if your family lives here). You may need to limit days visiting or working in the UK though.

              Try this

              Statutory Residence Test Flowchart

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