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Is there a best time to leave the UK for a year abroad?

Is there a best time to leave the UK for a year...

I have a client who is planning on working in Canada for a year, starting next year. 

They plan to leave in either March or June, and wondered if it is better to leave before or after the end of the 11/12 tax year, or whether there is no benefit either way. 

I am not a tax expert so don't feel I can advise in detail on this matter, so any advice would be gratefully received

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By lduk
20th Nov 2011 15:44

It's beneficial to be outside of the UK for a complete tax year as the individual will be deemed to be non-UK resident and therefore their overseas income will not be taxable in the UK.

However there is a HMRC extra statutory concession in place for employment overseas where income is not taxed in the UK, however I'm unsure of the criteria for this.

 

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By Flash Gordon
20th Nov 2011 15:55

I'd go now

There are rumours on AWeb that life in the UK is ceasing - if you can get a flight tonight I'd go!

Failing that I'd say March for the complete tax year but I'll admit it's not my strong point... (Canada - nice, lovely sights, snow, ice hockey....)

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21st Nov 2011 10:11

Complete tax year

As has been said, if you want to be non-resident, you need to be out for a complete tax year so go in March and return the following April (after the 5th!). Of course it is very likely that earnings will be taxable in Canada so being non-resident may not save much, if any, tax overall.

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