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Posted Wed, 10 May 2023 12:19:17 GMT by Daniel Lapena Gomez
Hello I have been offered a job abroad (in Iraq) working for a humanitarian organisation. The income locally will not be taxed as they do benefit from tax exemptions. This income could be paid in USD to a Iraqi bank or in USD in the EU (Belgium or The NL potentially). The duration of the assignment will be 9 to 12 months. If I send money back to the UK, will it be taxed? Money will be for general expenses, rent in the UK for my current flat, loans and savings. Regarding savings, can I still contribute to my ISA and LISA? Thank you!
Posted Tue, 16 May 2023 14:00:14 GMT by HMRC Admin 5

This depends on your tax residence status. You would need to determine if you are UK tax resdient and if so, you will need to declare the income -

guidance can be found here RDR3 Statutory Residence Test

You can still contribute to your ISA/LISA in the year of departure but not after that until you return to the UK.

Thank you.
Posted Tue, 16 May 2023 14:12:05 GMT by Daniel Lapena Gomez
Thank you. The assignment will be 9-10 months starting July, so I’m assuming I’ll be considered non-UK tax resident. Would the money sent back be taxed in this case? Thank you
Posted Tue, 23 May 2023 12:55:01 GMT by HMRC Admin 32

Not for the payments made up to 5 April 2024 as this is still the year of departure.

Thank you.

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