Transferring money to the UK
Hi all,
I know this has been discussed a lot on here but I cant seem to find the right answer.
I have some savings that i would like to transfer back to my bank account in the UK. I have lived here since the start of this tax year and so I havent been out of the country for a full tax year yet.
does anyone know if I will be taxed on the moeny i send home and if so, how can i transfer money without getting taxed?
thanks
It can be complicated, however, did you fill out a P85 before you left, it is the form that says you are leaving the country and going to live elsewhere?
It is important as it states you are not ordinarily resident anymore, also if you are also owed tax they will rebate it to you.
Did you also fill out a R105 and give it to your bank/building society as this is to state you are leaving the country and all interest is to be paid net. If you didn't you can still fill out form R43 and claim the interest back from the tax man.
The money you send back from Qatar is not liable for income tax unless you return to the UK without completing ONE full tax year out of the country, so if you came here on April 10 2012 the earnings in Qatar will be liable for income tax if you return to live in the UK before the beginning of the tax year in 2014.
You will not have to pay any tax in the meantime it is ONLY the liability that you have.
You will be eligible to pay tax on the interest that your bank account earns, (if any), however this will be offset against your personal allowance, (if you tell them).
Unless you need to send it back , which if the money is needed it wont earn interest anyway, I would wait until the next tax year early April 2013 and then send it back, remember to fill the forms out at the bank they will have them at hand.
Your worst case is that you go back before the beginning of the tax year 2014 (early April).
Just to be clear there is no tax to pay on sending money home, but you will be liable for income tax if you go home before the end of April 2014> Thats the simple case.
If you have ties to the UK it can be complicated, i.e you really need to have a Qatar Contract or a be on secondment away from the UK, as this is the way of proving you are not ordinarily resident, you need to ensure you have residency here as that is a clincher, if you dont have any of them, then its the complicated way and you need to hire a tax advisor.
hope it helps
I've sent you a PM
big crime! free tax consultancy :D
You can send it to me.