Navigating Non-Residency: A Conversation with Steph from Whittaker & Co

In our latest podcast episode, Anna sat down to have an informal discussion with Steph, our expert on non-residency matters at Whittaker & Co. With over 16 years of experience, Steph shared valuable insights into working overseas and the related tax implications.

Whether you’re contemplating a job overseas or already dealing with the intricacies of non-residency, the following article outlines the esse­ntial points from our discussion:

What do I need to do if I’ve got a job overseas?

The requirements vary based on factors such as – location, duration, and work arrangement.

For example, if you’re on an eight and four rotation to work in Iraq, you must ensure compliance with the UK’s tax regulations, particularly the 90-day rule.

The 90-Day Rule:

Despite recent changes to regulations, the 90-day rule remains unchanged – within a tax year, individuals shouldn’t spend more than 90 days in the UK, with no more than 30 consecutive days away from overseas work.

What documentation do I need to provide?

The required documents include:

  • A P45 (parts two and three)
  • A completed P85 to inform HMRC that you’re leaving the UK
  • A form 64-8 to authorise Whittaker & Co or your chosen accountant to represent you.

Additionally, providing your employment contract and travel details can ensure an accurate assessment of your non-residency status.

Tax Implications:

Understanding the tax implications of non-residency is essential for individuals working overseas. There may be some common misconceptions about how different income sources, like rental income and pensions, are taxed.

Rental income may still be taxable even though you are a non-resident. However, you can use tax-free allowances to lower what is owed. Pension income is typically taxable in the UK, but any deductions taken into account.

Will HMRC conduct compliance checks?

HMRC may randomly select individuals for compliance checks or initiate them based on suspicions or discrepancies, emphasising the importance of maintaining accurate documentation, including travel records or property transactions.

What about setting up a limited company for overseas work?

Steph advises that while having a limited company may benefit some, it’s not always necessary or advantageous, especially for those meeting non-residency criteria through employment agreements.

Wrapping up the conversation, Steph reiterated the importance of proactive communication and staying informed about tax obligations. Whether you are seeking advice on compliance or optimising tax efficiency, she urged listeners to reach out.

While this article provides a snapshot of our conversation with Steph, we highly recommend listening to the full podcast episode the full explanation of non-residency matters.

Link to the podcast: Buzzsprout