Dear All,
I recently started a 1 year(ish) contract in the Middle East on 1st March this year. Prior to then, I filled out lots of forms etc for inland revenue to notify them of my status. I recently had a letter from them saying that I will be treated as resident and ordinally resident and will have my foreign income subject to UK tax. I have read all the leaflets etc and this as far as I can see only applies if I spend more than 183 days in the UK in the tax year. Since I am only having 20 days annual year for the year this is unlikely to happen!
I have appealed - Seems little point having ex-pat status if I end up a large tax bill at the end of it. I am due to come back to the UK on 1st March 2007, but may stay out for an extra month so I am clear of a complete tax year. I am paid by a Bahrain company and have a residence permit, work permit etc, so I cannot see what the problem could be
Anyone able to help me to clarify ?
Thanks C