Tax implications for UK expats highlighted

The Bahrain British Business Forum (BBBF) held the first working meeting for the Financial Services Interest Group at the Capital Club last evening with a presentation from Tim Hawkins of E&Y’s International Tax practice, Bahrain office.  His presentation highlighted a number of high profile cases where HMRC (UK tax authority) has challenged claims of non-UK residence status.

“Many people working abroad believe that the 91 day test is cut and dried but these cases show that HMRC are becoming more aggressive in their stance.  There is no clear definition of “work abroad full time” and the demands of working internationally can create some challenges for people with global roles that require a return to the UK from time to time” said Tim Hawkins of E&Y

“The new guidance notes do not clear up the grey areas and the burden of proof remains with the taxpayer” he continued. “The taxpayer has to show a “definite break” and the proof of this is highly subjective and worth serious consideration”

The new HMRC guidance can be found on HMRC website and Ernst & Young has a “tax alert” paper that summarises the main issues and implications for those working abroad or returning to the UK.  This can be obtained from Tim Hawkins in the Bahrain office, 1751 4732 and is of particular interest to UK expatriates and Bahrain HR departments.

“The BBBF Financial Services SIG has a series of meetings planned for 2011 and is open to anyone with an interest in the sector or the topic” said Stephen Wagstaff, Country Manager, AXA and SIG committee member

“This evening’s topic is of personal interest to many of us within the BBBF but is also a concern of any organization with UK expatriate workers.  E&Y’s practice is international so any Bahrain HR team can get valuable insight into the implications for all expatriate workers from this group.”

The next BBBF lunch will be held on Thursday 10^th February with Paddy Gallagher of the Bahrain International Investment Park speaking on the role of BIIP in foreign investment.  

The BBBF was set up in 1995 and has grown from the original 16 members to over 400 members today. It aims to promote trade and investment between Bahrain and Britain in a non-discriminatory, non-political and non-profit making manner. The BBBF is widely recognized in Bahrain and the UK as a leading impartial business sector group. The Forum works to create and sustain a favourable business environment. The BBBF strives to assist and introduce new trade and investment to both countries to benefit and enhance the common economic interests of our member companies.