330 day rule?

mb- i thought this only kicked in if you have been resident in the UK for 7+ years. (ie- i moved to the UK in 2003.  this rule will kick in for me in 2010)

I don't know I was just explaining what it means, Guya said it kicks in 2008.

I hope you're right, I moved here in 2003 too and I would like a few more years before I have to worry about it.

i spoke to my accountant about this last week, and he clearly stated that it's 7 years after you become a resident.  for me, that's sep 2010.  i don't know about your case, this is just what my accountant said to me about my case.   

The rule for the immediate impact is that it will affect anyone UK resident for 7 out of 9 UK tax years, so it will immediately affect anyone here from the 2001-02 tax year onwards.

In julia_atlanta's case the £30,000 rule does not apply but as she and her husband are only here temporarily in the tax year 2008-09 they will only be UK resident if they are here for at least 183 days.

So if they are not resident I agree they should get a personal allowance if they are EEA or EU citizens.

If they are UK resident then they will not be ordinarily resident (ordinary residence is a separate status).  As not ordinarily resident people they will be taxed only on income arising in or remitted to the UK (the remittance basis).  If they make this claim they cannot claim UK personal allowances even though they have not been here since 2001-02.

They do not have to claim the not ordinarily resident status; they could  quite simply pay UK tax on worldwide income.

mbmasters believes that the UK would give credit for US tax after 5 April 2008, unfortunately this is not how HMRC interpret the double tax treaty, the story is really tedious but the UK and US cannot agree on how the treaty will work under this draft legislation - both countries are speaking but the IRS answer is not currently a bundle of joy either as yet, there is intense lobbying going on but a resolution is not obvious.

OK, just to clarify:

In 2007-2008 UK tax year we, one American citizen and one Swedish one (eea/eu), were here more than 183 days. The arrival in the UK forms that Ernst and Young filled out for us and we sent into the HMRC to determine our tax code stated that we did not intend to permanently reside here and that we planned on staying 2-3 years (though that has changed to slightly less than 1 in reality -- should i call them to change this information?) and that we planned to spend 5-10% of our stay outside of the UK. Both of our tax code subsequently assigned are assuming we get a 5225GBP personal allowance.

For 2007-2008 we should both get this allowance, right? If not, why would they have calculated that in? They know my citizenship and status.

For 2008-2009 we will be claiming not resident I'm guessing since we will not have been in the UK for 183 days of that tax year. You're saying that DH (EEA citizen) should get the personal allowance and that I shouldn't right? If that's the case, should I call in April and have them amend my info to not allow for that when they take out taxes so they will take out the proper amount?

And in worst case, if they are accounting for an allowance we shouldn't receive, which for each of us is 5225 then what we'll owe is a percentage (based on time) of a percentage (based on tax bracket) of the tax on that 5225GBP right?

DH hits the highest tax bracket so its good he's the EEA citizen if that affords him more access to the personal allowance. I make just slightly over 35K so I really don't get much into that 40% tax bracket which is good news if I have to pay any taxes back on that allowance amount.

The good news is that, even though we decided to go back to Atlanta our boss is still giving us the tax help for the US 2007 tax year since he already budgeted for it. I really hope that help will also extend to any UK taxes we have to file. If not, we may have infinitely more questions.

I mean, I guess its not going to be overly complicated, we just don't want to get screwed due to ignorance.