Reply to: Overseas Contract in UAE

[TykeMerc]

The obscenity filter changes the word you insisted on spelling out to tulip for a reason.

[fadanoid]

haha I said iamamoron not tulip

[fadanoid]

I said tulip not tulip

[fadanoid]

I forgot to say, reports from friends in the UAE are telling me there is a massive shortage of accomodation to rent so rents are sky high and that is, if you can find somewhere. Negotiate carefully.[/QUOTE]

WHS

Yup. Qatar Ditto. £400p/w for a one bedroom house on a secure compound in some tulip forsaken sand stinkhole. Enjoy. Hope you like - nothing!

[Soled73]

I have to admit it's all still very confusing, I've just read the following comment on a similar question...

"Most Expats have bank accounts overseas, which they can keep as offshore accounts. When an UK National moves back he/she will have to declare any INTEREST that earned. Any tax due on this interest must then be paid to the Inland Revenue. The EARNED tax free salary will stay tax free

Smart Expats invest in offshore investment bonds. This 'tax wrapper' defers income and capital gains tax, if structured correctly the bond can allow an Expat to draw a tax-free income into the UK.

Most Western Expats negotiate salary packages incl. housing, transportation, often school fees etc. Therefore it is possible to save some good money and tax has to be paid only on the interest gained."

I found this on : http://www.britishexpatsinthegulf.com

Looks like they know what they're talking about.

[Andy2]

Why not just open a Ltd here and invoice all your income from it, and then just extract all the cash and not pay any tax on it. How will HMRC know?

You are stretching it a bit too far
My question is if you are out of the country how would HMRC know whether you are working in another country or just holidaying

[ChimpMaster]

What if someone leaves the UK and work in UAE, keep his money in UAE bank and not bring it to UK.
How would hmrc know if he is working elsewhere.

Why not just open a Ltd here and invoice all your income from it, and then just extract all the cash and not pay any tax on it. How will HMRC know?

[Andy2]

What if someone leaves the UK and work in UAE, keep his money in UAE bank and not bring it to UK.
How would hmrc know if he is working elsewhere.

[Fred Bloggs]

The job in question is for a Platform Manager, my specality having performed a simiar position for 10 years as a permi.

So in summary if I took the position for 12 months, then came back to the UK straight after I would have to pay tax on it.

Shame - but still worth considering.

Yes, your other post is, I beleive, wishful thinking. Good luck.

[Soled73]

ITs all very confusing... just read this on an expat board....


"I have spoken at length to our tax expert here and he has advised me that although he is not an expert in off shore taxation he has researched and spoken to tax specialists to provide you with an answer.

When you leave to work in Dubai you are no longer classed as an ordinary resident and providing that you live and work in Dubai for the full tax year and do not reside in the UK for more than 138 days you will not pay UK tax on any earnings or savings.

When you bring the savings you have accrued back to the UK no tax is charged, and you are able to do with it what you want to.

The only tax you may pay is on any capital which you decide to hold in a savings account for the time before you use it as a deposit.

I hope this makes sense, it is certainly good news."

[Soled73]

The job in question is for a Platform Manager, my specality having performed a simiar position for 10 years as a permi.

So in summary if I took the position for 12 months, then came back to the UK straight after I would have to pay tax on it.

Shame - but still worth considering.

[Fred Bloggs]

In respone to neilmcl, the OP wouldn't be OK if he left in November 2008 and returned in Nov 2009. The OP would be liable to pay UK tax on foreign earnings for both tax years 2008/9 and 2009/10. The OP wouldn't meet the criteria of spending a full tax year working out of the UK.

Even if you spend 183 days in 1 tax year in the UK if you complete the P85 and advise you are leaving the UK permenantly then you would be non resident from the day of leaving and then future foreign income in that tax year wouldn't be subject to UK tax. However, the status can be revoked if the tax year rule (absent and working) isn't met in the next complete tax year.

I believe Unicorn is correct.

A £1000 a day???? What do you have to do to get that? I've recently seen jobs for Senior Engineers in Dubai offered at between £40 and £50k a year. Myself, I got offered a job in Qatar 3 years ago on a salary of £24k a year. It's no wonder they recruit Asian engineers is it?

[Unicorn]

Split Tax Years

In respone to neilmcl, the OP wouldn't be OK if he left in November 2008 and returned in Nov 2009. The OP would be liable to pay UK tax on foreign earnings for both tax years 2008/9 and 2009/10. The OP wouldn't meet the criteria of spending a full tax year working out of the UK.

Even if you spend 183 days in 1 tax year in the UK if you complete the P85 and advise you are leaving the UK permenantly then you would be non resident from the day of leaving and then future foreign income in that tax year wouldn't be subject to UK tax. However, the status can be revoked if the tax year rule (absent and working) isn't met in the next complete tax year.

[d000hg]

For £1000/day I'd work the 12 months and then stay a few months to get the tax break, doing any job I could find...

[neilmcl]

These days you have to be out of the country from 6th April to 6th April the following year to be tax free. If you go out in October 08 you will still need to be out of the UK on April 6th 2010 to qualify for tax free status. I believe you are entitled to return to the UK for 30 days in that period. However, IANAA.

I forgot to say, reports from friends in the UAE are telling me there is a massive shortage of accomodation to rent so rents are sky high and that is, if you can find somewhere. Negotiate carefully.

I understood it as being if he was in the UK for more than 183 days in a tax year then he'd be classed as a UK resident for that year in terms of tax. So if the OP left in November 1st and returned 12 months later I think he'd be OK., although I could be wrong.