Remote working income tax (UAE)

Hi, I am moving to the UAE at the end of May and will continue to work for my current UK employer for 2-3 months remotely from there. My understanding of the Statutory Residence Test is that I will not be a UK tax resident for the 2023/2024 tax year per the automatic overseas test #3 given that I will be a) working full-time overseas, b) plan to be present in the UK less than 91 days total during the tax year and c) my total number of working days in the UK before I leave will be less than 31. I have a handful of questions around my tax liability as part of my move, if anyone can help with answers to any of the below I would be very grateful: 1) Firstly just want to confirm that my understanding is correct per the Statutory Residence Test ? 2) Am I able to submit a P85 form in advance and therefore receive my income for the 2-3 months of remote working without any income tax deductions ? Or do I have to pay the tax and claim it back at the end of the tax year ? 3) For the work that I do in the UK between 6th April 2023 and the end of May (when I intend to leave for the UAE) - am I able to also claim this tax back at the end of the tax year ? 4) Am I liable for income tax on my income from renting my UK property out whilst living in the UAE ? If so at which rate i.e. does personal allowance still apply or do I give this up when I become non-UK tax resident ? 5) Am I eligible for VAT reclaims on purchases made in the UK once I give up my UK tax residency ? Many thanks in advance

Hi,

1. Yes, you are correct based on the information given.
2. You cannot submit the P85 in advance as you will need the P45 information to allow the claim.  
3. This will be inlcuded within the P45 figures.  
4. Yes, you will be liable on any UK rental income. Due to you having this, you will need to register for Self Assessment as you will be a non resident landlord. Any tax due depends on the level of income you  earn as you will also need to include the PAYE income received prior to your departure. You will still be entitled to personal allowances. As you now need to complete a tax return, any repayment claim will be processed from there and not from the P85 and you will need to wait until after 6 April 2024 to claim this.  
5. You will need to contact VAT on 0300 200 3700 to confirm any reclaims

Thank you.

Thanks for your response, and understood re claiming the tax back at the end of the tax year through my tax return. My only follow-up question on the SRT status for question 1) is the significant break clause... the RDR3 notes define a significant break as 31 days - does 6th April 2023 (start of tax year) to 25th May (departure date for UAE) not constitute a significant break and therefore nullify my entitlement to non-UK tax residency ? If so, if I were to work remotely overseas for a short period of a few days in between those two dates, could I still be considered as passing the automatic overseas test, because I would then be breaking up this significant break of > 31 days into two chunks of < 31 days. Many thanks

Hi,

The following guidance advises what is taxable in the year of departure. 

RDRM10135 - Residence: Leaving the United Kingdom: Liability for the year of departure

Thank you.