Just looking for opinions on this one, I think I have made a decision but just in case I have missed the point thought I would ask for other people's opinions.
Client left the UK on 20 June 2012 to work in Sierra Leone under a contract of employment due to last until 30 June 2014.
Split year treatment was applied for on the 2012/13 Return from 20 June 2012. The client spent 20 days in the UK between 20 June 2012 to 5 April 2013.
Whilst preparing the 2013/14 Tax Return client states that he returned to the UK 17 January 2014, and has remained in the UK to date.
As he has not spent an entire tax year out of the UK, I think the 2012/13 Return needs to amended to remove split year treatment and he will now be taxable in the UK on the entire income earned whilst in Sierra Leone for 2012/13 and 2013/14.
He has paid some Income Tax in Sierra Leone for which he will get relief against his UK liability but this stills leaves a large UK liability for 202/13 and 2013/14.
Other facts of the case:-
Client returned to the UK between 2 June 2013 and 15 June 2013 on annual leave.
Client then returned to the UK between 20 June 2013 and 11 July 2013 as his mother suffered a stroke on 17 June 2013 and passed away on 27 June 2013.
Clients spouse was diagnosed with cancer in mid August 2013 and commenced treatment. He then returned to the UK on 17 January 2014 to care for the spouse as further operations and treatment was undertaken.
Any thoughts?
Thanks
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Mortgage Application
Dilemna
A now non resdent client has asked for management accounts for their UK company to give to their mortgage broker in support of their application.They have now also advised that they will be winding up the Uk company when short term contracts expire in December 2014.I feel this is material and should be disclosed on the accounts even though this will obviously affect the application.
Am I right?
Thanks for any input.