Roy Walker IFA - Financial Adviser In Dubai

Please note. This article is a summary, for general information only.  It is not tax advice. Whether you pay UK tax depends on your residence. Non-UK residents will pay tax on their UK income, but not on their foreign income. So, if you live outside the UK, what counts is whether HMRC considers you to be non-residents for tax purposes. The Basics - UK Statutory Residence Test (SRT) A few years ago the UK introduced the Statutory Residence Test . You’re automatically UK resident if either : you spent 183 or more days in the UK in the tax year, or your only home was in the UK - you must have owned, rented or lived in it for at least 91 days in total - and you spent at least 30 days there in the tax year You’re automatically non-resident if either : you spent fewer than 16 days in the UK (or 46 days if you haven’t been classed as UK resident for the 3 previous tax years), or you work abroad full-time (averaging at least 35 hours a week) and spent fewer than 91 days in the UK, of which...

I live outside the UK - should I make voluntary National Insurance contributions? The decision on whether to make voluntary NI contributions depends on your own specific circumstances. National Insurance contributions for British expats? First a quick reminder. National Insurance (NI) contributions go principally to fund the National Health Service (NHS), the state pension, unemployment benefits, and sickness and disability allowances. Anyone employed in the UK will have an NI number, and make NI contributions via PAYE (pay-as-you-earn) deduction from salary. These are known Class 1 NI contributions (NICs). If you’re self-employed in the UK, you pay Class 2 NICs at a flat weekly rate, and annually Class 4 NICs based on taxable profits. If you are working abroad for up to two years and for a UK-based employer, you will likely be required to continue paying Class 1 NICs.  Alternatively, you can choose to pay voluntary contributions, Class 2 or Class 3. Depending on your circumstances...

Would you like to maximise the tax planning benefits of being a British expat abroad? Read on for a summary of some key reliefs and allowances available from the HMRC tax man… (Note: this article is relevant to British expatriates working in Singapore and other overseas locations, as well as other nationalities who may be moving to UK in the future.) Click to download this information in PDF format. Summary of Tax Benefits of an Offshore Investment Plan Under HMRC tax rules for ‘ foreign ’ investment bonds and investment-linked life policies have additional tax planning benefits compared with their domestic equivalents. The purpose of this article is to briefly highlight the most important. The content is not intended to be specific tax advice of any kind, and rules can change at any time. Everyone’s tax situation is unique and you should consult a qualified tax accountant regarding your own circumstances. 5% withdrawal allowance Time apportionment reduction Top slicing relief ...

British citizen living abroad? It’s essential to understand the UK inheritance tax rules because they probably do apply to you! NB.  These rules apply even if you are not British , but have assets or investments based in UK!!   UK inheritance tax is an extremely complex subject and you should always get expert advice to suit your circumstances. The following article is designed to give only a brief overview of the topic. Much like making a will, planning for inheritance tax is one of those things we usually prefer not to think about. However, it’s an area where a little bit of forward planning can make a huge difference to how much of our wealth the tax man gets his hands on - to the tune of thousands of pounds, or even hundreds of thousands. How much exactly? Currently inheritance tax (IHT) in the UK is 40% on assets over the £325,000 threshold . But wait a minute, I don’t live in the UK, don’t own any assets there, and haven’t even been back for years. I won’t be due...