Moving back to the UK from the Gulf: residence, tax and your NI record

The statutory residence test

HMRC's guidance gives automatic tests first. You are non-resident for a tax year if, for example:

• you were UK resident in 1 or more of the 3 tax years before, and spend fewer than 16 days in the UK
• you were not UK resident in any of those 3 years, and spend fewer than 46 days in the UK
• you work full time overseas, spend fewer than 91 days in the UK and have no significant break

You are UK resident if you spend 183 days or more in the UK in the tax year. Other automatic tests cover a UK home and full-time UK work. If no automatic test settles it, the sufficient ties test decides.

Coming back part way through a year: HMRC lists 8 split-year cases. Cases 4 to 8 cover arriving in the UK. In a split year, pay that belongs to the overseas part is not charged to UK tax. Each case has its own conditions, so check yours with an adviser.

How HMRC sorts your end of service pay

HMRC's Employment Income Manual draws one line. "If a payment has its source in the terms of employment it is not compensation for loss of employment, but rather earnings from the employment."

Earnings follow the residence rules above. A payment that is instead a termination payment under section 401 is taxed whatever your residence, subject to tax treaties. Foreign service relief needs you to be non-UK resident in the tax year the job ends.

HMRC's manual does not mention Gulf gratuities. Ask a UK tax adviser which kind yours is, and which tax year it falls in.

Foreign income and short spells away

If you are not UK resident you do not pay UK tax on foreign income. If you are UK resident you normally do, unless the Foreign Income and Gains relief applies. That relief is for a qualifying new resident. That is someone who was not UK resident for at least 10 years in a row before.

Short spells abroad: this rule needs two things. You were UK resident in 4 of the 7 years before you left. And you are away 5 years or less. Then some income received while away, such as certain lump sums, can be taxed in the year you come back.

Your National Insurance record

A UK State Pension usually needs at least 10 qualifying years. You cannot pay voluntary Class 2 contributions for time abroad.

You can apply to pay voluntary Class 3 contributions for time abroad after 5 April 2026. You must have lived in the UK 10 years in a row, or paid 10 years of qualifying contributions. Apply on form CF83, and check the current weekly rate on gov.uk.

Bringing cash in

Carrying cash between Great Britain and a country outside the UK? Declare £10,000 or more to UK customs.

Sending it from the Gulf

These services send money online from each Gulf country, paid for in that country:

• From the UAE: Western Union and Remitly.
• From Saudi Arabia: Western Union and STC Bank.
• From Kuwait: Western Union, LuLu Money, BEC Pay and Al Mulla Exchange.
• From Qatar: Western Union.
• From Oman: ask your bank or an exchange house for a quote.
• From Bahrain: Western Union.

Ask each for a quote to the UK for the same amount, and compare what arrives.