Tax free or not
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?
- Moneysoft or Sage payroll with auto enrolment? 117 2
- Where has Portia gone? 3,662 95
- What are other accountants having for lunch? 356 11
- Unwarranted VAT assessments 76 1
- micro entity balance sheet query 160 5
- Virtual Assistants 68 1
- Where can I report and accountant for defraud 299 6
- RTI Payroll ID 777 20
- Overlap profit 96 1
- Sole trader paying Class 1 NIC 101 1
- Stock of photos to capatilise 314 14
- Spousal transfer and PPR 793 34
- Rogue Accountant 3,599 57
- Assigning loan from Company to adult children 98 2
- Practice management software 1,115 21
- Associated disposals - Entrepreneur's relief 342 19
- Inheritance Tax - Gifts UK 158 1
- VAT on a private sale? 196 5
- Overseas business trip - accompanied by family 257 3
- Tax refunds for 2014/15 1,246 24
- Services via intermediaries and new HMRC reporting requirements 823
- Pensions Regulator 462
- How hard is it to reduce a code? 428
- Sanzar 328
- How do you do it 318
- Digital marketing focus group 307
- Kashflow balance sheet difference 279
- new investor structure 188
- Bed & Breakfast trade via Limited Company 187
- Fit for purpose 182