From: "Chris" 
Newsgroups: uk.finance
Subject: Tax on overseas work (Should I really pay ?)
Date: Wed, 19 Jul 2006 21:04:14 +0300

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 



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