Contract in Middle East: Expenses and Limited Company

[sojan]

I have received an offer to work in Qatar & UAE as part of client consultation. It would be a 6-12 months contract. Initially I thought, it would be tax free but my recruiting agent (who is middleman) says they will pay to a UK account only !!!! Hence I had to start a limited company in the UK itself.

My queries
- Have anyone gone through this scenario? How did you do?
- Since I'm in client location in a stretch, can i claim all food expenses, taxi, hotel ? Can subsistence be claimed without receipt?
- How to show expenses as I would be dealing with cash or local currency. Does this needs to be translated into GBP? (or receipt just enough?)

[stek]

I don't think you can claim accom/exp as UAE is effectively becoming your main residence.

[sojan]

@stek, thanks for your reply

But reading through HMRC website, anything less than 2 years "could" be considered temporary. I'm not sure how the subsistence systems kicks in.

Really would be very helpful if anyone had similar experience (i.e contractor working in Dubai)

[TheCyclingProgrammer]

It's not about duration, it's about duality of purpose. If it's your only residence it's primary purpose is to give you somewhere to live.

[sojan]

It's not about duration, it's about duality of purpose. If it's your only residence it's primary purpose is to give you somewhere to live.

As mentioned OP, its not for residence, but client consultation for 6 months (temporary)

[Pondlife]

As mentioned OP, its not for residence, but client consultation for 6 months (temporary)

The point is that it will be your main or only residence for the period. Will you continue to own or rent a property in the UK whilst you're out there? Or will you move out there for the period?

[BlasterBates]

Provided you keep your house or flat I think it will not be a problem claiming expenses whilst you're working there. I see more the main potential problem is that the Middle Eastern country you're going to maybe expecting you to register or pay tax

[sojan]

@Pondlife - I don't have main residence in UK. Will be moving out for a period (say 6 months)

As things are getting more clearer now, can i ask a simple Question (may be a stupid one) - would I need to pay tax in the UK if my agent/company credit money into a Dubai account directly?

[stek]

@Pondlife - I don't have main residence in UK. Will be moving out for a period (say 6 months)

As things are getting more clearer now, can i ask a simple Question (may be a stupid one) - would I need to pay tax in the UK if my agent/company credit money into a Dubai account directly?

U'd need to totally detach yourself from the UK - no house, family left behind, the rules are clear, just read them on HMRC website.

[BlasterBates]

@Pondlife - I don't have main residence in UK. Will be moving out for a period (say 6 months)

As things are getting more clearer now, can i ask a simple Question (may be a stupid one) - would I need to pay tax in the UK if my agent/company credit money into a Dubai account directly?

If you decide to stay abroad for at least a tax year (starting April) you can deregister.

https://www.gov.uk/tax-right-retire-abroad-return-to-uk

If you are only away 6 months you need to declare your earnings regardless of where it's paid.

The fact that it is paid into a non UK account doesn't mean it's not taxable.