I have read HMRC 6 Residence, domicile and the remittance basis and I have come to the conclusion that the income is exempt from UK tax, but I would appreciate the views of others, to ensure I have not missed or misinterpreted anything.
Notice to file a 2011/2012 tax return issued.
Client unsure if P85 completed will let me know tomorrow.
Client has never previously worked outside of UK, therefore domiciled, resident and ordinarily resident in UK
Facts - in Feb 2011 Electrician began working for an American contractor in Afghanistan. Contract states "duration - long term - 12 months" and then within the contract it states "employment is for an unspecified time period and can be terminated by either party at any time"
Salary, allowances and reimbursed expenses are all paid in dollars and the funds where paid direct into a UK bank account.
Client left UK for Croatia for training on 8/2/2011, then on 15/2/2011 flew to Dubai for onward flight to Afghanistan on 16/2/2011
Visits to UK where as follows:-
Arrived 19/5/2011 returned to Afghanistan 7/6/2011
Arrived 11/9/2011, went Rep of Ireland to get married on14/9/2011 returned to UK 20/9/2011 went to Portugal for honeymoon 21/9/2011 returned to UK 28/9/2011, returned to Afghanistan 1/10/2011.
Arrived 21/12/2011 went to Rep of Ireland 23/12/2011 returned to UK 2/1/2012 returned to Afghanistan 10/1/2012
Returned to UK 6/4/2012 after contract ceased.
I have calculated that total days home where 62 including trips to Rep of Ireland and honeymoon in Portugal.
I have based my conclusion on Ch 8.5 "leaving UK to work abroad as an employee" and based on this the client is not resident and not ordinarily resident for 2011/2012, then based on table 10.10.1 duties performed wholly outside the UK - not liable to UK Tax.
Have I missed anything? or been to simplistic in my approve?