Hi My husband has been offered a job in Saudi Arabia teaching…

Hi RS

Thanks for your question

If the employment contract that your husband has entered into see his working in Saudi for at least a full tax year (so beyond 05/04/2012) and his visits back to the UK will be less then an average of 90 days each tax year, then his pay from Saudi can remain free of UK tax. He should arrange to complete form P85 - leaving the UK on the day he leaves to take up this employment.

If, however the employment is for less than a full tax year - or his visits back to the UK will be in excess of 90 days - then he will be liable to UK tax on this income. He should still arrange to complete a form P85 - Leaving the UK - so that HMRC can establish his residency status (whether resident or not for tax purposes) and whether a self assessment tax return needs to be filled in after each 5th April.

Link here for form P85

Tax credits also will be affected by the time your husband is to be out of the UK - and whether this can be treated as a temporary absence or not.

If treated as temp absent - then the tax credits award may continue but will be affected by the income that your husband earns - as I would assume this is likely to increase, without the tax position even coming into play. (but temp absence is 8 - 12 weeks and will also be affected by visits back to the UK)

If he is treated as continuously absent (so is away for more than 12 weeks at a time) - then after the 12 weeks after your husband has left - then you will be expected to make a single claim - and this will see the stop of working tax credits but the child tax credit would remain. This could mean a temp absence of payments as one claim ceases and the new one begins. And a change of claim each time he returns - so you do need to discuss this with the tax credit office, so you keep on top of your obligations, and are clear about what claim has to be made when.


Thanks

Sam