AnnaC-Whittaker&Co

Greetings all, my name is Anna Cooperwhite and I belong to Whittaker & Co Accountants and Business Consultants. I look after all the security guys around the world, with the majority of my clients working in Iraq or Afghanistan. I also have a large number of security clients within the UK. For more information about us check out whittakerandco.org - Home, the webiste is still under construction (nearly there another week and it will be sorted) but you can have a peek.

I have been asked to give a brief overview of the questions asked by some of my clients here are a few for you, further on I have also given some information about the Draft Resident & Domicile Legislation that comes into force in April 2008.

1. I still haven't set myself up as working abroad, can I backdate it to when I begin.

Yes, you can, the form to fill in when you are looking at working abroad is a P85 and you are able to back date this form to the date you commenced your employment abroad.

2. I started working in Iraq in September which is half way through a tax year, is this ok.

Yes it is, as we claim whats called a split year and work out the days allowed in the UK from when you started.

3. Do I have to set myself up as self employed when I work abroad.

No, if you set yourself as self employed the Inland Revenue assume you are working in the UK and therefore issue tax returns and you therefore pay National Insurance contributions. Filling in a P85 is the only form you need to fill in when you commence employment overseas.

4. I work in Iraq and have an army pension which is taxed at source so will I need to complete a tax return.

Yes, any UK income be it an army pension or money recieved from, lets say letting a property needs to be entered on a tax return, therefore what happens is the P85 (Application for Non-Resident) is submitted and a UTR (unique tax reference) number is applied for which then issues tax returns. When your tax return is then completed, the pension information is entered (from your P60), a suppliement Land & Property sheet is filled in (if you are letting your UK property) and also Non-Resident sheets are also attached to the tax return. A claim for personal allowances on the Non-Resident sheet is selected so your UK allowances can be used (ie your tax code 522L), but you don't need to worry about any of that as this is something I do for you anyway!!!

5. I have gone over my 90 days allowance by 20 days does this mean I know have to be taxed on that years income.

If in the first year your time in the UK is 183 days then yes, your income has to be taxed as you cannot over the next 3 years claw those days back, so, non-residency rules are therefore void. However, 20 days over in your first year is very easy to ammend in the subsequent 3 years (The Inland Revenue look at non-residents over a 4 year period) so, in the next year, you work an extra week, take a few extra holidays abroad and bring down your second year working overseas to 70 days only in the UK.

6. In my first year I only spent 81 days in the UK does that mean I lose those 9 days that I am allowed.

In deed not, we bank them for the next year.

7. I am paying National Insurance Class 2 contributions whilst working overseas do I need to.

Is entirely your choice, you are under no jurisdiction to pay into the pot, but some like to think its best to continue adding into the state pension fund, ummmmm think of it like this, you may be early 30's and paying this £8.80 every month to the goverment, are we going to have a state pension in another 30 years??? What will happen to the money you drip fed in,???

8. I am looking to buy property can you help?

Of course we can, we have teamed up with a mortgage company and as a lot of the guys need self cert mortgages, by teaming up with a mortgage company we have that seemless link from accountant to lender.

9. I have some money I want to invest who should I go too?

Again not only have we teamed up with a Mortgage company but we have done the same with a financial services company, so again we can help you there.

10. I want to come back to work in the UK and set up a Ltd Company is this easy todo.

Indeed it is, once you come back in the UK (and we advise you do this at the begining of a new financial year) we have a long chat with you to see which are the best options, a lot of guys think a Ltd company is the best option but sometimes that may not be the case, we assist you in every way we can and steer you on the best route for your new business.

So much more to say but I hope the above is of some help, we also have assisted in Tax Credits, CSA, Offshore banking, Company formation UK & Swiss and the list goes on and on, ah yes onto the draft legislation on Residency & Domicile:-


On the 18th January that Inland Revenue released their draft legislation on Residency & Domicile. I have had a number of emails asking about these changes and the effect on their Non Residency and whether these new rules apply.
The only ruling that will effect guys/gals working abroad is the loss of travel days, this comes into effect in April 2008.
To put the record straight, I point you to the following link
HM Revenue & Customs: Residence and domicile: Frequently Asked Questions(FAQs)
Scroll down to Question 22 which reads as follows:-

22. Will the current formula by which my tax is calculated remain unchanged if I remain non-resident?

There are no current plans for changing the basis on which non-resident individuals are assessed for UK tax.

Hope this helps, any questions just email me or add me to your MSN to have a chat

Many thanks
Anna Cooperwhite