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  • digital nomad remote working in Dubai

    Hello HMRC, I am a UK national and a consultant living in England providing design services through my own Ltd company (company registered in UK since 2011, vat registered, 1 person company, I’m the director). I have been offered a fully remote outside IR35 contract that will be executed by me via my company, beginning April 2024. I was thinking of using the digital nomad visas offered by tax free countries esp. Dubai, for maybe upto 2 FY. If I were to move to Dubai, I would have no ties with the UK except for my company. I wanted to understand the following: 1. Based on SRT tests, i will be non resident, as i will have no ties other than my company. I dont envisage working 30 days in the UK either. However, all the work I will be doing from Dubai, will be for my UK company, which in turn is working for a UK client. But as physically I'm not in the UK I don't have enough ties. Is this correct? Does my being the company director change anything wrt SRT, like number of days for UK ties? 2. If I’m classed as non-resident, will the dividends/ salary drawn by me from my company be taxable in UK? If no, then do I need to declare them on my self-assessment?
  • Split Year - ISA

    Hello HMRC, I wanted to understand whether I can subscribe to ISA, LISA in a year where split treatment case-1 is applicable to me.
  • EIS deferred CG - becoming nonresident

    Hello HMRC, I had made some EIS investments 1 year back when I was in the UK & had also deferred capital gains against them. I still hold the EIS investments but am currently abroad. I will be nonresident for 2-3 years. I understand that my EIS investments income tax relief claimed, CG on disposal are independent of residence, but deferred capital gain is not available to non-residents. I needed to understand whether I need to / when I should apply for the deferred CG to be revived. Reading HS297 Reporting revived capital gains section, I understand the following: 1. If I move abroad 3 years after the EIS shares were issued, the deferred capital gains will not be revived. HMRC, please confirm if this is correct? 2. If I become non-resident at anytime (can be within 3 years of EIS issue date) but become resident again within 3 years, the deferred capital gain will not be revived. HMRC, please confirm if this is correct? If yes, then 3 years of non-residency are not 3 financial years but 3 years from date of EIS share issue? Eg: EIS share issued on 6/7/2022, leave UK on 1/1/2024 come back on 31/12/2026. So out of UK for 3 years, But dont need to report deferred CG to be revived? Further, HS297 states that become non-resident to take up employment abroad, do other reasons for becoming nonresident not qualify? Thanks
  • RE: EIS-capital gain deferral

    Understood. Thank You so much
  • EIS-capital gain deferral

    Hello HMRC, I wanted some clarity on capital gains deferral in EIS. Essentially can I defer only the FY gains & carry forward the FY loss or is it the net FY gain that can be differed? For clarity, say I have 14k gains, 2k loss, EIS investment of 8k. Can I defer 8k capital gain, use 6k allowance & then carry forward 2k loss in my self-assessment? Or as the net FY gain for the year is 12k, allowing for 6k tax free allowance, I can only defer remaining 6k in EIS investments?
  • Company director remote working in Dubai – personal tax

    Hello HMRC, I am a UK national and a consultant living in England providing design services through my own Ltd company (company registered in UK since 2011, vat registered, 1 person company, I’m the director). I have been offered a fully remote outside IR35 contract that will be executed by me via my company, beginning April 2024. I was thinking of using the digital nomad visas offered by tax free countries esp. Dubai, for maybe upto 2 FY. If I were to move to Dubai, I would have no ties with the UK except for my company. I wanted to understand the following: 1. Will I be non-resident in UK for purpose of taxation, given that I will have no family/home ties with UK, be in UK for less than 30 days; however, all the work I will be doing from Dubai (min 40 hrs/week), will be for my UK company, which in turn is working for a UK client. Does my being the company director change anything, like number of days for UK ties? What is the number of days allowed in UK to be non-resident, as a company director? Is it still 16 days for automatic ties test or reduces to 0? What do I have to do be non-resident as a company director of a UK company working for my company? 2. If I’m classed as non-resident, will the dividends/ salary drawn by me from my company be taxable in UK? If no, then do I need to declare them on my self-assessment? 3. What happens to NI? Employers NI has to be paid by my company? 4. So far I have understood that upon leaving I will need to complete a P85 form and upon becoming a resident of Dubai apply for a NT tax code. Is that correct? Anything else I need to do? 5. I have a flat that I will rent out, rental income will be filed in my self-assessment & taxed in UK. My company will pay corporation tax, vat as usual. Correct? 6. Income from stocks (companies in USA, EU, UK etc) held in my UK demat account: dividends/Capital gains as well as any UK interest income will also not be taxable in UK? If no, then do I need to declare them on my self-assessment? 7. I have accounts in India (I'm born in India & I think domiciled in India), Income from stocks (companies in India) held in my India demat account: dividends/Capital gains as well as any interest income earned in India will also not be taxable in UK? If no, then do I need to declare them on my self-assessment? 8. Does anything change if I’m back in 2 FY? HMRC website, talks about temporary non-residents, if back in less than 5 FY. Would that mean that tax on salary/dividends from my UK company would have to be paid before returning? What about other income heads: stocks in UK demat account? I assume that foreign income i.e. earned in India would still be exempt? I have tried to get information from two accountants but have received conflicting advice. According to my accountant, I will be non-resident & hence except rental income in UK, everything else is outside UK tax. However, a colleague in similar position has been advised by his accountant, that the salary/dividend from my UK company would be taxable in UK, as the work is done through a UK company & as I’m the director of the company, even one day in the UK puts me in UK tax range, he wasn’t sure what happens if 0 days are spent in UK! I would be very grateful, if HMRC could provide an answer to this, as I’m sure there must be many in my situation & there is confusing / conflicting advice available.
  • EIS-2 years abroad

    Hello HMRC, I had made some EIS investments 1 year back when I was in the UK & had also deferred capital gains against them. I will be moving abroad for work for maybe 1-2 years, should I return the deferred capital gain benefit to HMRC now? Or wait until the companies cash out my stocks?