Client Working in Dubai

groundy

I have a client who has been based in Dubai for the last 18 months. Initially he invoiced the customer through his UK company and everything was declared in company accounts. He has rung me this week to ask if he could be paid direct as an employee of the Dubai company (where there is no income tax). He is owed money for the last ten months of work and he has been based in Dubai for the whole of the current tax year except for home visits to family totalling 28 days. He will probably return to the UK at the back end of this year.

My question is will this income if paid as an employee be taxable once the money is brought back into the UK?

I would be most grateful for any assistance as I have spent a good bit of time on this already and I am coming across a lot of conflicting advice.

Regards

Ste

Monsoon

Either he is resident, or he is non resident for the tax year, unless split year treatment applies (permanent move to/from the UK). If he is not resident, then is he is living in Dubai and being paid as an employee over there, that's not chargeable to UK income tax. He shouldn't then get taxed on it if he moves to the UK and brings the dough with him. However if he is resident in the UK for that year he will be taxed. If split year treatment applies, then he should be able to avoid paying UK tax on his Dubai income.