Moved abroad to work.

**SueEllen** · 16 June 2011, 13:06

Does the country you in have a double taxation treaty with the UK?

If so, then any tax you pay in that country will be credited against the tax you pay in the UK.

Do you have any home in the UK? If you don't, then you will eventually become non-tax resident but it will take a couple of years.

So make sure HMRC have your foreign address so you get yourself assessment forms etc otherwise they will just fine you automatically.

Also contact the NI department (I think they are in Newcastle) and tell them you have moved abroad to work. The information is on the HMRC website.

**configman** · 16 June 2011, 13:50

I've spoken at length with HMRC on this issue as I became non-resident this year after going to China. In short any money earnt in the UK is taxable in the UK, and any money earnt abroad is taxed abroad. If it's not taxed abroad then you could be liable to tax in the UK. It is also possible depending which country you go to to withdraw as dividends money left in the company account paying no income tax in addition to CT already paid - but be careful to make sure you qualify and you will be away from the UK for long enough if you plan to do this in your first year abroad. You need to show HMRC that you are breaking all ties with the UK and you are not doing this for a tax advantage or a temporary stay in another country. You need to fill in a P85 that notifies HMRC including the NI department that you are or will be non-resident.

My non-residency started on day one that I left the UK - but if I come back to soon then any money I took as dividends would then be liable to Income Tax. If you use the dividend method then make sure you keep money back in case you come back. If you are letting a property you may also qualify for the non-resident landlords scheme to get the rent untaxed at source.

It took nearly 2 months to get all the answers out of HMRC to confirm my tax status before I moved any money around. It would be worth you searching HMRC website to read relevant literature as they are reluctant to say what you can/can't do because it could enable you to be tax efficient unless you ask specific questions.

These forms may be useful to you.

HM Revenue & Customs: The Non-Resident Landlords (NRL) Scheme

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

**Taxless** · 16 June 2011, 14:18

Originally posted by sdc View Post

I have a Ltd company that I used for the first few months of this tax year whilst working as contract labour.
I have now moved abroad and started work and should become non-resident for tax this year by visiting the country for less than 91 days.
If I close down my Ltd Co and pay off all taxes etc owed, will I be liable for
UK tax on the money earned overseas?

The 91 days is an average over any period of up to 4 years. If you meet the other criteria you will be allowed less than 91 days in this tax year, assuming you left the UK after 5 April 2011 as it is effectively time apportioned.

To have any hope of being treated as non-UK resident you need to be working out of the UK for at least a full tax year (6 April to following 5 April) so if you left after 5 April 2011, you need to be out until at least 5 April 2013 (permitted visits aside).

You can declare this on the P85. At this time you are stating an intention so if things change and you come back early and fail to qualify for non-residence it’s not the end of the world, although you may have UK tax to pay, depending on the DTA with the country concerned, any foreign tax paid etc.

Non-residence is another area where HMRC have been increasing their vigilance as they see this as an area of tax loss. When examining one guys claims to be out of the UK on certain dates they found that he had used a UK hole-in-the-wall machine on a day when he had claimed to be outside the UK!

**BlasterBates** · 18 June 2011, 16:20

If you intend to stay out of the UK for more than a year you fill out a P85 form

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

If you return within a year, whether you're taxed again will depend on the Double Taxation Treaty. In general in Europe you are only taxed once on most forms of income, and once you-ve been taxed, you are generally exempt in the other country, but there are exceptions. In countries without a Double taxation treaty you can credit taxed payed.

**Gonzo** · 18 June 2011, 23:44

You also need to be wary about how your new country will view your company and any money that you draw from it (if any).

Some countries are not interested, but others decide that your company becomes resident in their jurisdiction at the same time that you do (or rather when the company's centre of control moves to their jurisdiction but that means you if you are the sole director).

I know of at least one country (the one I am in) that views all drawings from a company as income and taxes them as income making no distinction between dividends and capital gains.

Moved abroad to work.