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client returning to uk

client returning to uk

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Hi just wondering if someone can help. I have a new client who has been in Saudi Arabia working as a teacher for around 6 years then they moved back to UK in July 2018 permanently. They started self employment in November 18 . From April to July 18 they earned around £2,100 (estimate) in Saudi. Does this have to be declared on there 18/19 tax return ? This is my first time with a client who has lived abroad and returning to uk so would appreciate any help.

 

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By Accountant A
11th Oct 2019 13:23

Have a look at the HMRC manuals concerning residence; there is useful information there.

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By ireallyshouldknowthisbut
11th Oct 2019 17:02

Definitely have a good look at this if its new to you. Look at "split year" treatment.

Several issues can arise.

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By mail.taxperfect.co.uk
15th Oct 2019 13:45

First establish the client's residence status for the year using the usual tests. Then establish if split-year treatment applies, again using the usual tests. In the bog standard case - coming back permanently to work, etc. - then split year treatment would more than likely apply, in which case off-shore earnings upto that date will not be taxable in the UK. However, the residence rules can splurt out unexpected results, so it's important to go through the tests methodically and carefully. Another thing you might want to think about is whether the client had/has a residence abroad and how the CGT position of the property is/might be affected by their return.

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