I have a client working in the NHS on a salary and with private work. She is Self Assessed. No problem
She is moving to Qatar to live and work there for between 3 and 6 years. She will start to draw her NHS pension when she is in Qatar and has asked whether this is taxable in the UK.
According to HMRC’s website even if she is not UK resident, UK pensions, rental income, interest and earnings are subject to UK tax. She also intends to return to the UK for yes than 91 days on average a year. She would like to work for the NHS during these periods.
My view is that her NHS pension and any other UK earnings would be subject to UK tax by Self Assessment and her earning in Qatar would be subject to local tax. She will maintain a house in the UK.
However she is being told by colleagues also about to do the same that their NHS pension would be paid to them gross and would not be subject to UK tax when they live and work in Qatar. Is this advice correct or just opinion ‘from a bloke down the pub’?
Replies (5)
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personal allowance
income arising in the UK is taxable in the UK.
Presumably your client will be entitled to her personal allowances & a tax code will be issued to the pension provider once it commences, if less than her pa's no tax will be deducted.
Is there a double tax treaty with Qatar?
If so you can apply for pension to be gross on the basis that it will be declared in Qatar
You apply to HMRC who then refers it to Qatar taxman.
I've done this with USA resident. Have a look to see who you apply to first. I'm sure it's the non-res section of our own HMRC........
I note that you were worried that your client had received advice from a bloke down the pub, so you came here and asked a random bunch of halfwits.
The fact that it is an NHS pension is particularly pertinent. On the assumption that your client is not a national of Qatar, her NHS pension is taxable in the UK. Articles 17 and 18(2) of the treaty refer.
Less than 91 days
OP,
You state that your client intends to visit the UK for less than 91 days on average a year. What is the relevance of that?