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Old 03.01.2015, 17:58
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Tax on Return to UK

Sat here looking at my navel and contemplating what my tax situation will be when I return to the UK next year.

My situation :-
- Permit B holder
- Work 40 hours per week and have a contract of employment.
- Paid in CHF and tax deducted monthly.

If I return to the UK on the 1st of September , will the UK Tax authority then consider me a tax payer and uk resident in the 2016/2017 tax year and thus charge me tax again on my Swiss Salary paid between 6th April 2016 and 31st August 2016 ? or does the double taxation clause come into play and I having paid tax in CH on this salary, will not be taxed again in the UK ?

Has anyone had experience of this ?

Thanks
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Old 03.01.2015, 18:10
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Re: Tax on Return to UK

I think you mean 15/16 but in any event you should be able to apply for split year treatment i think:

http://www.hmrc.gov.uk/manuals/rdrmmanual/rdrm10420.htm

Good luck readjusting to UK tax rates....
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Old 03.01.2015, 18:26
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Re: Tax on Return to UK

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I think you mean 15/16 but in any event you should be able to apply for split year treatment i think:

http://www.hmrc.gov.uk/manuals/rdrmmanual/rdrm10420.htm

Good luck readjusting to UK tax rates....
Thanks.
Who knows what UK rates will be in 2016 :-) ....post May 2015 election.
But higher than Swiss rates either way.

The HMRC document implies plus 183 days in UK, then your classed as a resident. So maybe I will postpone my return by a couple of months and then on return will be well below the 183 days.
Humm .....
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Old 03.01.2015, 18:32
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Re: Tax on Return to UK

From the HMRC document ....

This split-year treatment will apply to individuals who:

come to the UK to take up permanent residence or to stay for at least two years, or
leave the UK to become permanently resident abroad, or
leave the UK for full-time service under a contract of employment for at least a complete UK tax year and any interim visits to the UK in the period do not amount to 183 days or more in any tax year or an average of 91 days or more in a tax year.

Confused ...first they say 183 days or more in a tax year and then say 91 days in a tax year ?
Do they mean ....
You have been away for 2 tax years and you visited UK for 100 days in year 1 and 50 in year 2 and thus your average is 75 days ....so your under 91 and ok ?
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Old 03.01.2015, 18:43
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Re: Tax on Return to UK

The days are for if you are definitely taxable. If you average 91 days or more than 91 days over a period of several years, then you're liable for tax in the uk. If you are in the uk for 183 days or more in a single tax year, you're liable for tax in the UK.

So. If you are over 182 day - liable.
If your average days in the past four years was 90, and you spend 100 day this year - liable.


However, even if your days are less than the stated, that doesn't mean you're not liable. If you maintained a family and home in the UK, for example. BUT - the double taxation always applies. Any tax you've paid in CH will be deducted from your UK tax bill.

Liable = resident for tax purposes.

If you are not liable/resident for tax purposes, then you can apply for split year treatment.
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Old 03.01.2015, 19:32
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Re: Tax on Return to UK

No family home in the UK.
Well I have a house in the UK, but it is occupied by house sitters (They pay the bills). We stay in a hotel during UK visits (30 days a year).

So for myself I would be liable for UK tax in the year I return (2016 September), because start of September to April 5 2017 is over 183 days.
Thus in my case I will probably delay my return until end of October 2016.

From and including: Saturday, 29 October 2016
To, but not including Wednesday, 5 April 2017
Result: 158 days

oh it's all so complex ....tax, tax and tax.
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Old 03.01.2015, 20:07
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Re: Tax on Return to UK

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The days are for if you are definitely taxable. If you average 91 days or more than 91 days over a period of several years, then you're liable for tax in the uk. If you are in the uk for 183 days or more in a single tax year, you're liable for tax in the UK.

So. If you are over 182 day - liable.
If your average days in the past four years was 90, and you spend 100 day this year - liable.


However, even if your days are less than the stated, that doesn't mean you're not liable. If you maintained a family and home in the UK, for example. BUT - the double taxation always applies. Any tax you've paid in CH will be deducted from your UK tax bill.

Liable = resident for tax purposes.

If you are not liable/resident for tax purposes, then you can apply for split year treatment.
Just read it slowly again.
I will be ok under this statement ;

This split-year treatment will apply to individuals who:

come to the UK to take up permanent residence or to stay for at least two years


As the return to the UK will be permanent (well at least for 5 years).
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Old 03.01.2015, 20:08
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Re: Tax on Return to UK

You already answered the question.
Split year treatment is for people taking up permanent residence in the UK.
So you will be resident from the day you arrive, as you have no intention of leaving.
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