contracting abroad for UK agency

[BlasterBates]

I would check on whether your taxable in Africa, you're not an employee of the UK government part of the embassy staff, so how are you registered? If the embassy has registered you as part of their staff I can see that you wouldn't be expected to pay tax, but since you are not a civil servant I wouldn't assume it's automatic, and I assume the embassy aren't necessarily going to protect a contractor. Anyway don't trust what your agency has said, they're not qualified to know.

The fact that you've maintained your residence and you return to it does mean HMRC might see you as resident. Anyway your accountant is probably best qualified to advise on that.

[Brussels Slumdog]

Which African country ?

Without knowing which African Country you are currently working it's difficult to give advice.
If you hold a "Resident Permit" then any efficient government will know that you exist which would make you a tax resident.
If you are working in say Somalia then I doubt that they would send you a tax return

[northernladuk]

<Pedant>
There's no such thing as "directors dividends". Dividends are paid to shareholders, not to directors.
</Pedant>

[Wanderer]

Wasn't sure that the tax was still the same as the actual 'work' is being done outside the EU.

Sounds like you should get specialist advice about this one, there could be thousands of pounds in tax at stake here...

[chalced]

The contract is finishing next year, so I will be returning to the UK then. I have retained my UK address as this contract was only going to be for 12-18 months.
The work I do is outside of the IR35 remit, so no problem there
Not sure about the P85 form tho??!!
Wasn't sure that the tax was still the same as the actual 'work' is being done outside the EU.

[prozak]

I am actually working for the UK government here, so it is not for an African based company... just to throw another stone in.. so I am not liable for tax in Africa.

Are you maintaining a life here in the UK? An address etc? Are you expecting to return?

HM Revenue & Customs: Residence and domicile issues

Did you fill out a P85 ?


Your situation could be rather complex. So you need to make sure you determine your residency.

I don't think the end company matters that much.

If you are resident in the UK still then your tax wont be much different to the rest of us resident contractors, but make sure you claim all the expenses for living abroad. The African country might have something to say about this though. Being resident is probably the easiest scenario.

The way you describe your role as getting paid "set monthly wages" has me more concerned about your Ir35 status than your residency.

[TheFaQQer]

Hi,

I was just wondering if anyone knew what the tax implications were for this scenario... I am a UK Ltd. company, working for a UK agency, but working full time in Africa. I have a UK residence, but am only there for about 10 weeks of the year.
I get paid a mixture of set monthly wages (plus overtime), hardship allowance and cost of living allowance. Accommodation is provided and all I pay for are meals and drinks.
Does anyone know exactly what I would be paying tax wise? Bearing in mind I only pay myself minimum wage and take the rest as directors divedends.
This is the first time my accountant has come across this particular set of circumstances and although he is looking into it, I would like to have half an idea myself (especially as I only see him a couple of times a year!!).

Cheers.

<Pedant>
There's no such thing as "directors dividends". Dividends are paid to shareholders, not to directors.
</Pedant>

[Clare@InTouch]

I am actually working for the UK government here, so it is not for an African based company... just to throw another stone in.. so I am not liable for tax in Africa.

If you're resident in Africa though (which I assume you are if you're only in the UK for 10 weeks) you might meet their own rules for tax residency. For example in many countries if you're there more than 183 days then they expect you to complete a tax return and pay tax on your worldwide income. You then get credit under double taxation treaties for tax deducted in other countries.

[chalced]

I am actually working for the UK government here, so it is not for an African based company... just to throw another stone in.. so I am not liable for tax in Africa.

[Clare@InTouch]

Is there a reason you don't have an African company? Presumably you're tax resident there? Have you ever been resident or domiciled here?

Your UK limited company will pay UK Corporation Tax, but potentially you'll be facing African CT too as the effective management and control of the company takes place there. This is where the double taxation treaties that Prozak mentions come into play. SA has such a treaty - is this where you're based?

My first suggestion would be to seek out an African accountant to get advice on the situation there, then you can get advice from a UK accountant as to how that fits in here and decide on your best course of action. Unless you get a UK worldwide tax specialist, who would be quite expensive, it's hard to find someone who could advise fully on both countries.

[prozak]

Hi,

I was just wondering if anyone knew what the tax implications were for this scenario... I am a UK Ltd. company, working for a UK agency, but working full time in Africa. I have a UK residence, but am only there for about 10 weeks of the year.
I get paid a mixture of set monthly wages (plus overtime), hardship allowance and cost of living allowance. Accommodation is provided and all I pay for are meals and drinks.
Does anyone know exactly what I would be paying tax wise? Bearing in mind I only pay myself minimum wage and take the rest as directors divedends.
This is the first time my accountant has come across this particular set of circumstances and although he is looking into it, I would like to have half an idea myself (especially as I only see him a couple of times a year!!).

Cheers.

My advice is to get a new accountant if he can't give you a definite answer.

Wait a few minutes and see how quick the accountants who post here can help you.

It all depends on your residency and the variables of how much of the above is revenue through your company. Then double tax treaties come into play as well I guess. Your question reads as though you might be salaried in Africa as well.

I think there will be more questions than answers initially.

[chalced]

Hi,

I was just wondering if anyone knew what the tax implications were for this scenario... I am a UK Ltd. company, working for a UK agency, but working full time in Africa. I have a UK residence, but am only there for about 10 weeks of the year.
I get paid a mixture of set monthly wages (plus overtime), hardship allowance and cost of living allowance. Accommodation is provided and all I pay for are meals and drinks.
Does anyone know exactly what I would be paying tax wise? Bearing in mind I only pay myself minimum wage and take the rest as directors divedends.
This is the first time my accountant has come across this particular set of circumstances and although he is looking into it, I would like to have half an idea myself (especially as I only see him a couple of times a year!!).

Cheers.