Hello I am seeking some advice please.

I resigned from my UK job in April 2005 and flew to Australia where I currently am for a working holiday initially but now I am a sponsored contractor.

I have been informed by my contacts back home in the UK that a letter has arrived from the HM Revenue & Customs asking for a P60.

My dear mother back home was thoughtful enough to phone the HM R& C to explain where I am and what I am currently doing!

HM R & C said that they have no record of me ever finishing work in this country (UK) and by right I should have filled in a P85 on leaving and that they no longer need the P60 but a P45.

I am just wondering what would be the next 'best' step from here now and is there any chance of opening up a taxation can-of-worms should I decide to contact them and so forth. i.e. is this likely to result in me being financially penalised in any way at all, now or in the future.

Any advice is greatly appreciated.

Thank you.

I thought about something that may explain the sudden communication from the HM C & R.

Recently I phoned my bank in the UK and instructed them to transfer money into my ISA. I have not done this for at least a year.

I got told that since I had not sent them a standard letter which explains that I wish to continue investing into my ISA, that they could not proceed with the transaction and that they would send a letter out (to my UK address) for me to sign so that they could proceed with the transfer.

Perhaps this could have triggered this communication from HM C & R ?

Again, any advice appreciated.

Thank you.

Acf,

I wouldnt have thought that this would have triggered your communication from the HMRC but I would say that in order to invest in an ISA (I'm in the Mini Cash ISA field) you'd have to be "ordinarily resident in the UK". Whilst abroad, you can keep your ISA open but can't subscribe unless you are exempt through your employment i.e. a crown servant. Ordinarily, the HMRC would only become involved if you've subscribed to more than one ISA within a single tax year. If you've told your ISA provider that you're living/working abroad you may well find that unless you can substantiate any exemptions you'll be hearing from them that you can no longer subscribe whilst you're out of the UK.

I could be wrong of course but that's my experience through work!

Bumblebee

BumbleBee.

Your posting has been greatly received, thank you. Am I likely to suffer from any financial loss is I were to 'update' the HMRC on my situation. i.e. resigned from UK job, jumped on a plane and picked up a contract in NZ and now presently Australia ?

Thanks.

Acf,

Hi - glad to be of help but not sure how much I can add. I am certainly not a tax expert so would always recommend that you speak to someone who is! What you could do is speak to the horse itself (so to speak) and give the HMRC a call putting a scenario to them - you don't have to give them all your personal details but present them with a situation for guidance. The HMRC will probably remind you that in the event you're no longer (ordinarily) resident in the UK then you're no longer eligible to subscribe.

Another thing to remember is that as soon as you withdraw your funds from your ISA the funds lose their tax free status so if you don't want to transfer the money (or value of shares if appropriate) immediately you might want to hang on to them in the ISA until you really do to earn every last penny of interest you can! ("Look after the pennies..." and all that!! ) You may also find that your provider will not be able to send the closing funds overseas so you might need to have a UK bank in your own name open in order to receive the funds before sending on to Oz.

Hope that's not too much jargon! If that makes things as clear as mud then let me know!!!

Bumblebee