Reply to: decision time

[BlasterBates]

...and the wife will be able to join me next year.

Jamaica? or is she going of her own accord.

[jamesbrown]

It doesn't sounds like tax planning to me. It sounds like the OP has a government position that is exempt from all taxes. It's possible (think UN, IMF etc.). I occasionally contract for an organization in the UK where staff are exempt from all income taxes (sadly though, as a contractor, I was not ).

[BlasterBates]

It's not Saudi - It's Jamaica! and the wife will be able to join me next year.

That changes everything...

go go go.....

white beaches, carribean sunshine, and as much rum as you can drink....



yes agree with the above it's doubtful that it is tax free you need to check on that one. Sounds like "tax planning".

In my view reading this I see nothing about tax exemptions for foreign contractors

http://www.kpmg.com/global/en/issues...ncome-tax.aspx

Often agencies use tricks to pay contractors by putting a lot of money in an overseas bank account and paying you a salary up until the threshold, and then tell them it's perfectly legal. Make no misrake, this is tax evasion and you might just end up in serious trouble.

The other thing is hot and humid can get on your nerves after a few days if you're not on holiday, and Jamaica is a poor country so their might be a lot of crime to deal with.

Still if it's worth it after paying the appropriate amount of tax, sounds interesting.

[psychocandy]

After much deliberation and consultation with the wife (and the contract company), I have decided to go with the contract as they have offered 3 years if I want it!.

It's not Saudi - It's Jamaica! and the wife will be able to join me next year.

When I do the maths (bearing in mind that I will be renting the UK house out), then I should be able to save between 20-30 K per year (ALL bills are paid for whilst abroad), so with a chance to pay the mortgage off within 2 years, as opposed to taking on a bigger mortgage (as would have been with the permie) it seemed to make sense.

Thanks for all the input

Another thing to bear in mind :-

1. Just because they say it will last 3 years doesnt mean it will.
2. Even if you're signed up for a year doesnt mean it will last more than 1 day if things change.

BTW. Wheres ur missus going to live if you rent UK house out?

[psychocandy]

Not being funny but even if you're working in Jamaica and being paid into a uk bank account SOMEONE be it the UK OR Jamaica is going to want tax out of you.

Who told you it was tax free? Or is it just tax free if you dont tell the jamaican authorities?

BTW - if it was an agent who told you it was tax free I'd be rapidly speaking to someone who specialises in international tax affairs to get this all verified. Especially if this was the basis of my decision (as it seems to be with you).

[stek]

Yes... As I am going to be living out of the UK virtually permanently for the next 3 + years

Then you will pay Jamaican tax...

[JamJarST]

Yes... As I am going to be living out of the UK virtually permanently for the next 3 + years

Sounds dubious to me, and possibly illegal in Jamaica. Have you verified this?

[chalced]

Yes... As I am going to be living out of the UK virtually permanently for the next 3 + years

[JamJarST]

But in my case I have no other family to worry about


'stek
Jamaica has income tax and taxes you on your world wide income....'

It's not working for a Jamaica company... Its to the UK government out there and being paid to a UK account

Tax free???

[chalced]

Then you have very different life goals to me, I could work 12 months a year, or half my wage and only work 6 months, spending more time near the family. I know which I choose

But in my case I have no other family to worry about


'stek
Jamaica has income tax and taxes you on your world wide income....'

It's not working for a Jamaica company... Its to the UK government out there and being paid to a UK account

[speling bee]

Then you have very different life goals to me, I could work 12 months a year, or half my wage and only work 6 months, spending more time near the family. I know which I choose

We need a new irony font.

[stek]

Jamaica has income tax and taxes you on your world wide income....

[SimonMac]

It's very borderline, though, isn't it?

3k probably not. 6k definitely. But 5??????

Then you have very different life goals to me, I could work 12 months a year, or half my wage and only work 6 months, spending more time near the family. I know which I choose

[chalced]

After much deliberation and consultation with the wife (and the contract company), I have decided to go with the contract as they have offered 3 years if I want it!.

It's not Saudi - It's Jamaica! and the wife will be able to join me next year.

When I do the maths (bearing in mind that I will be renting the UK house out), then I should be able to save between 20-30 K per year (ALL bills are paid for whilst abroad), so with a chance to pay the mortgage off within 2 years, as opposed to taking on a bigger mortgage (as would have been with the permie) it seemed to make sense.

Thanks for all the input

[speling bee]

To me (given the circumstances you listed) its a no brainer, do you take an extra £5k over family happiness?

It's very borderline, though, isn't it?

3k probably not. 6k definitely. But 5??????