tax free

[irish john]

hi guys
just woundering if any one can help anser my questions please
basicaly ive got the start with a uk firm but the work is in abu dhabi 6 weeks on 2 weeks off all flight food acc.ect. paid
the question is how is the best way to claim the money tax free ? do i have to stay out of the uk for so long ? do i have to have a bank account else were ?
any help would greatly appreshiated


regards john


ps excuse the spelling

[Dougone]

Bring the money back converted into a solid god necklace (Mr T style)

[Guest1]

Why don't you buy those mini gold bars from those vending machines they have over there?thats what I would do.

[AtlasRob]

Originally Posted by irish john

........ how is the best way to claim the money tax free ? do i have to stay out of the uk for so long ? do i have to have a bank account else were ?

Congratulation on the start, need any ducks

It was along time ago but I believe the situation is much the same.

I worked for a Dutch outfit in Algeria 8wks on 2 off. Our money could be paid anywhere we wanted. A few had foriegn accounts and played with the currency exchange rate to try and make a few more bob but most of us had normal UK bank accounts although I seem to remember having a Jersey account for some time.

You need to stay out of the UK for a minimum number of days in a given tax period to be classed as NON Resident. At 8wks on 2 off we had too many days in UK so had a fortnight holiday abroad which gave us enough days.
At 6 on 2 off you are going to have to take a couple of holidays. Fly the better half out to meet you somewherea couple of times. She might not like it but its amazing how they learn to like it

I will see what I can discover for you.

The other thing is to ring the local tax office and ask them. I have always found a genuine question got an honest and helpful response.

[AtlasRob]

I put "Non Resident Tax Status" in Google and came up with this link.

http://www.hmrc.gov.uk/cnr/faqs_general.htm

A quick scan read I have COPY & Pasted these 2


Q3. In what circumstances would I become non-resident?
A3. Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if:
•your absence and employment from the UK covers a complete tax year (that is 6 April to 5 April)
•you spend less than 183 days in the UK during the tax year
•your visits to the UK do not average 91 days or more a tax year over a maximum of four years

From 6 April 2008, days when you are in the UK at the end of the day, that is midnight, are normally counted as days spent in the UK



Q13: In what circumstances will I be treated as a UK resident for UK tax purposes?
A13: To be treated as resident in the UK you must normally be physically present in the country at some time in the tax year. You will always be treated as resident if you are here for 183 days or more in the tax year. There are no exceptions to this. You count the total number of days you spend in the UK - it does not matter if you come and go several times during the year or if you are here for one stay of 183 days or more. If you are here for less than 183 days, you may still be treated as resident for the year if you visit the UK regularly and your visits average 91 days or more a tax year over a period not exceeding four years.

From 6 April 2008, days when you are in the UK at the end of the day, that is midnight, are normally counted as days spent in the UK.

END

The other thing is to check up on your NIC as you cant pay Class 1 while abroad. I think I paid Class 3 voluntary. Its all to do with your pension entitlement. The older you are the easier it is to find out if you have enough qualifiying years. You may have enough years already and decide not to pay any. You need to check.
If this is a short term contract, eg you go next month and its probably only 10months work you are probably too many days in the UK already for this tax year.

On edit. There are generally 365 days in a year. Leap years mess it up a bit

[Richard]

Rob has the right info there off the HMRC.....essentially you can't be in U.K. for more than 90 odd days in order to qualify, you also will need to declare any incomes arising in U.K. and declare money when you bring it in to U.K. account(s)

If you are employed then technically your employer has to deduct the tax, esp. if you will be paid out of U.K......the mystique of off-shore accounts is no longer so mystical.

Also check to see what your tax liability will be in country where you are working, there are dual taxation treaties with most countries these days....unfortunately someone somewhere wants their pound of flesh

Ask around and get yourself a good accountant advisor who actually specialises in non-tax resident status affairs from the very start just so you're covered.

[irish john]

thanks for the ansers guys im going to speak with an accountant and i will ring the tax office