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bigduckontax, Accountant
Category: UK Tax
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I've been resident in Malaysia since April 2008 and paid local tax since arriving

Customer Question

Hi, I've been resident in Malaysia since April 2008 and paid local tax since arriving. I filled out the P85 prior to leaving the UK in December 2007. I joined a new company in Feb 2015, the new company wants to equalize my tax back to the UK, I do not think this is right and will also make me worse off. My avg salary is circa GBP60K. Can you advise? My new employer is based in the UK and is the source of my salary, which is paid 100% in the UK
Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. Fortunately, you completed a P85 when you moved to Malaysia so HMRC will have classed you as non resident. Your new employer, in the absence of a P45 [naturally], will apply to HMRC for a tax code for you using the P46 procedure. It is highly probable that HMRC will issue a tax code which will ensure that no Income Tax is deducted from your emoluments. If this tax code is incorrect you should take it up with the tax office which issued the code and have it corrected. That I think covers the Income Tax position. Whether your new employers should be paying you in the UK for service overseas, which, in fact, is quite common, is outside the scope of Just Answer and is a personal mater between you and your new employers. In the event of UK Income Tax being deducted such tax will, under the Double Taxation Treaty between the UK and Malaysia, be allowed as a tax credit against any Malaysian tax liability thus protecting the same income stream being taxed in both jurisdictions. The Treaty does not, however, protect you from differences in rates of tax. I do hope that I have been able to help you with your problem.
Expert:  bigduckontax replied 1 year ago.
Amendment: paragraph 2 line 5; delete 'mater,' insert 'matter.'

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