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Personal and Tax Planning
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My job is about to take me overseas for about two and a half years. I am very worried because I have read that the 'foreign earnings deduction' has been abolished. Does this mean I will have to suffer PAYE while I am abroad?
Because of 'large scale abuses' (in particular by pop groups doing long overseas tours) the general foreign earnings deduction was cancelled. However, if both your stay abroad and your employment are expected to extend over one complete tax year, the Revenue will be willing to classify you as non resident from the day after you leave the UK. Your overseas earnings are outside the scope of the UK tax system if your interim visits to the UK are fewer than 183 days in any tax year, or an average 90 days or less per tax year over the whole period.
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