Personal Income Tax for UAE resident: Has both UK Employer Salary (PAYE) and Other UK Income

Current Circumstances: I am a UK national and currently work in the UK as a contractor via my own limited company. I also have a second company that is used purely to hold a property that is being rented out in the UK. All my personal tax is currently paid via self-assessment using an accountant. Possible Change in Circumstances: I may relocate to the UAE at the start of the new tax year (April 2024) due to family circumstances and work remotely as a permanent employee for a UK based company that has no offices in the UAE. I am looking to use the digital nomad visa made available by the UAE. I will still also maintain both my UK Limited companies. I will meet the third automatic overseas tests for this new tax year and be classified as non-uk resident as per the SRT rules: https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt/guidance-note-for-statutory-residence-test-srt-rdr3. Given that the UK and UAE have a double tax treaty, my understanding is that I am not liable to pay UK income tax on my salary via my employer and I would pay UAE income tax that is 0%. As I am a director of two uk companies I will still need to submit a self-assessment form. However, I will now also be paid by an employer via PAYE. Questions: 1. For my PAYE salary, can I get a tax code of NT so that no income tax is deducted at source by my UK employer? 2. Which HMRC form do I submit to get the tax code of NT? (My understanding is that I cannot use form P85 if I still need to compete a self assessment.) 3. Can I apply for the NT tax code before commencing my employment, assuming I have all necessary paperwork from the UAE? 4. How long does it typically take to obtain the NT tax code? 5. What other forms must be completed by my accountant when he submits my self-assessment form at the end of the new tax year so that my non-resident status can be taken into account.

Hi,

1. You can apply for a NT tax code by completing a double taxation claim.
2. Double Taxation: Treaty Relief (Form DT-Individual)
3. No, you cannot apply before it starts as your plans could change.  
4. You should allow at least 8 weeks for any application to be processed.     
5. Your accountant should include HS304 if the double taxation claim has not been sent in. UK rental income remains liable to tax in the UK no matter where you are resident.

Thank you.

Hi, A few follow on questions: 1. Can I apply for the NT tax code as soon as I have proof from the UAE that I have a working nomad visa and residency or would I need to wait 183 days to have shown that I have not been resident in the UK for that tax year? 2. Would I need to ask my employer to do anything or would HMRC just inform them of the new NT tax code? 3. Am I correct in assuming the NT code can be applied by my employer as soon as it has been issued by HMRC? 4. For any overpaid tax during the 8 week application processing period, would this just be reclaimed at the end of year when my accountant completes my self assessment, assuming it is determined to be an overpayment? Thanks

Hi Fuzz,
1. Yes. it would be appicable from the date you leave the UK.
2. No. HMRC will send a revised code to both you and your employer.
3. It will be operated on the next pay date after they receive it.    
4. As the NT status would be applied on an emergancy basis, yes, you will need to wait until the end of the tax year for any additional refund from the date of leaving until the NT code is operated.
Thank you.