tax question , help needed fast to make a descision

A

adgreeny

New Member
Hi been offered a contract in Saudi , leaving uk end of January , its a 12 month contract. What is the position for tax?? will be paid in Dollars, so second question do I need an off shore account or can it be paid into my uk account. TBH if I am gonna be smashed for tax it isn't worth it as will only get 24 days at home with the wife in that 12 month! any help or advice much appreciated guys as need o let them know ASAP.
cheers
 
Your question really should be.... Can anyone recommend a good accountant?

Use the search bar there are a couple that always get mentioned.
 
Option 1: Set up a UK Ltd company. Speak with your bank and set up a business account. Then ask for a $ account. HSBC is good for this. You will still pay tax unless you qualify for non domicile where you'll pay zero tax. I think it's a maximum of 90 days a year in the UK to qualify as overseas.

Option 2: Set up an offshore company in $'s and never pay any UK tax(Unless you bring it into the Country). Can cost up to $5k to set up an offshore company

Option 3: Do nothing, and receive $'s into your UK account. You will loose money and still pay tax.

If I were you I'd call an accountant and register yourself as non-domicile.

Try Whittaker&Co

CM
 
adgreeny said:
Hi been offered a contract in Saudi , leaving uk end of January , its a 12 month contract. What is the position for tax?? will be paid in Dollars, so second question do I need an off shore account or can it be paid into my uk account. TBH if I am gonna be smashed for tax it isn't worth it as will only get 24 days at home with the wife in that 12 month! any help or advice much appreciated guys as need o let them know ASAP.
cheers
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Mate if you are only back in the UK for 24 days in that 12 month period you will not pay any tax,but that will depend if you return to the UK after the contract finishes, you then only have a 15 day window between ending and starting a new contract overseas again, and what i mean by that is, if your job finishes i.e. contract complete then you go home, if you do not return overseas again then I do think you will pay tax on the salary you mention. Like I said you have a 15 day window. You have to show a full 12 months overseas for non residency but this all depends when you start work overseas, example, I started back overseas in the June 2011 I didn't gain non residency until April 2013 and that was due to me returning after April 6th 2010. It did all changed April this year, but as mentioned get an accountant and they will put you straight on it all.

I use Lockett & Co Hereford based and they are fantastic, if you choose them you will be asked to go to there office for a face to face where its all explained to you so you fully understand the whole process, and not just given a catalogue sized explanation thats just mind bedding to say the least.

Also regarding your salary paid in dollars each month, you could go through worldfirst.com you can bank your salary there and basically you get a better exchange rate than with your own UK bank, plus there are no transfer fee's either I know a few guys use it in Iraq as its US Dollars there to mate,something to look at bud.
 
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HI Adgreeny,

If you will only be in the UK for 24 days in a 12 month period, you would be looking at going down the Non-residency route. If your contract starts in January 2014 you will have to remain as a Non-resident until April 2015 as you have to complete a full tax year (6th April to 5th April) of non-residency. Therefore if you decide to jack it all in by August 2014 then you would have to pay tax on it all.

Being Non-resident is only a tax status and you can still have ties in the UK i.e. mortgage, bank account etc.

Your wages can be paid into your UK account, but it may be worth having a look around at good exchange rate accounts as if you are paid in Dollars some banks do have some daft fees for exchanging your wages in Pound Sterling. As Marshy41 says WorldFirst Banking are very good.

All the best for 2014 in your new role!

Lee
 
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