Originally posted by Wilmslow
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Split Year Taxation
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Split Year Taxation"
Collapse
-
-
Originally posted by Fred Bloggs View PostIf you have a 30 day break without employment that has implications to answering your question. However, someone might point out that unless you tell a third party what you did exactly then how would anyone know the exact day you ended the contract? In your shoes, I would try very hard to get the last day of contract as April 6th 2019. Then you would claim a 1 day/364 day split year for 19/20 tax year, leaving you fully expat for the whole of 18/19.
Leave a comment:
-
Originally posted by Wilmslow View PostThanks, that helps and is a lot clearer than my accountants have been. Question on the back of this - Do I need to be in contract working from the end of January 2019 to 5th April 2019, or just not on UK soil? Or look for another role over here, or extension for the three months to ride out?
Leave a comment:
-
Originally posted by Fred Bloggs View PostSorry, you cannot claim split year. You would have to return after April 6th 2019 for a claim for split year to be accepted. When you fill in your self assessment with SA109 you claim split year for 17/18 and for 19/20. You must be expat for the whole of 18/19 tax year to qualify for split year treatment. If you refer to the documents I mentioned above, it is very clearly set out.
Leave a comment:
-
Originally posted by Wilmslow View PostThanks for the heads up. My contract is January 2018 to January 2019, so how does this impact me? Would my split year be January to January, or two splits of January to April, and April to January? My understanding from my admittedly hopeless tax adviser is to spent longer than the full year, which I am doing with a couple of weeks either side, and using the Table E for the sliding days.
Also check in RDR3 where it has tables clearly explaining how many days in year you can be in the UK and still qualify for split year treatment. I'd say on the dates you provided you do not qualify anyway due to not being expat for a full tax year 18/19.Last edited by Fred Bloggs; 21 February 2018, 12:33.
Leave a comment:
-
Originally posted by Fred Bloggs View PostIf I understand you correctly, you want two consecutive split years? You cannot do this. Take my own example - I left the UK in July 16 and applied for split year treatment for 16/17. A precondition is that you must remain expat for the entire following tax year. I am fully expat for 17/18 so my claim for 16/17 split year is valid. If I return after April 6th 2018 I will apply again for split year treatment for 18/19, the year of my return. You must study RDR3, SA109 and SA109 guide notes as it is very clear on this kind of stuff. HTH.Last edited by Wilmslow; 21 February 2018, 12:11.
Leave a comment:
-
Originally posted by Wilmslow View PostI have a question about Split Year taxation and IOM – Been contracting in UK for around 6 years and taken on a 12 month fixed term role with payroll through IOM tax, so the IOM funds hitting my personal bank account are after tax and NI. Have run through with my accountant and associated tax advisor, but, they have been useless. Two parts to my query.
Firstly, despite discussing with my accountant in good time before I started, they acquiesced and were useless. My tax advisor now tells me that as a Manx resident cannot take dividend out of my rather substantial Ltd Co bank account through UK as it will be through IOM tax which is a complexity I don’t really want – I am intending to keep the IOM tax aspects clean. So I am thinking I just need to leave the funds in place until the first tax year I am back as a UK resident – Any other thoughts on this?
Secondly, with regards to the Split Year – How would I go about this with the tax form? I will be start to end over the required 12 months, and less than 90 days in the UK, so I will be having two split years – one per tax year. Has anyone got experience of going through this? (Reviewed the residency test and comfortable with the position). Mid Jan to Mid Jan.
Thanks.
Leave a comment:
-
Originally posted by Wilmslow View PostFirstly, despite discussing with my accountant in good time before I started, they acquiesced and were useless. My tax advisor now tells me that as a Manx resident cannot take dividend out of my rather substantial Ltd Co bank account through UK as it will be through IOM tax which is a complexity I don’t really want – I am intending to keep the IOM tax aspects clean. So I am thinking I just need to leave the funds in place until the first tax year I am back as a UK resident – Any other thoughts on this?
Leave a comment:
-
Split Year Taxation
I have a question about Split Year taxation and IOM – Been contracting in UK for around 6 years and taken on a 12 month fixed term role with payroll through IOM tax, so the IOM funds hitting my personal bank account are after tax and NI. Have run through with my accountant and associated tax advisor, but, they have been useless. Two parts to my query.
Firstly, despite discussing with my accountant in good time before I started, they acquiesced and were useless. My tax advisor now tells me that as a Manx resident cannot take dividend out of my rather substantial Ltd Co bank account through UK as it will be through IOM tax which is a complexity I don’t really want – I am intending to keep the IOM tax aspects clean. So I am thinking I just need to leave the funds in place until the first tax year I am back as a UK resident – Any other thoughts on this?
Secondly, with regards to the Split Year – How would I go about this with the tax form? I will be start to end over the required 12 months, and less than 90 days in the UK, so I will be having two split years – one per tax year. Has anyone got experience of going through this? (Reviewed the residency test and comfortable with the position). Mid Jan to Mid Jan.
Thanks.Last edited by Wilmslow; 21 February 2018, 09:32.Tags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: