Overseas Work

[Jackson Le Bear]

Anyone out there recommend the best way to make a tax free pound.
Is the opportunity still there ?

[This message has been edited by Jackson Le Bear (edited 23 March 2000).]

[Wide Body]

I don't think there's much about anymore. Get used to the long shifts, and cold nights!

[growler]

Not quite tax free but try this:
1)Set yourself up as limited Company (an accountant will give advice on this and your first session generally comes free)

2) Tout yourself around the agencies stressing that you are looking for Limited status

3) Employ yourself on £63 a week and your wife/partner if you have one as secretary/bookkeeper. £63 is the threshold at which tax and NI are not payable.

4)Any other money you need, take from the company you have set up as Share Dividends. These are taxed at 20% I think and can be declared at any time on forecast company profit.
Corporation tax that your company will liable for also runs at the rate of 20% I think.

You can declare 1 room in your house as an office and rent it out to the company you own. Also PC's and furniture can be deducted against tax, and if you have a good accountant probably squeeze a car out of it, claim businesss mileage etc.

As far as I know rates for contactors (Licensed) run from £25 to £35 / hour depending on trade/qualifications etc.

If working outside UK, you can work up to 6 months in places like Holland and Germany without paying tax, this is 6 working months (180 days) and days off do not count, so on shift work you could extend this to 9 calender months. Spend 12 months outside UK and you can avoid tax here, but this can be tricky as we are all covered by EU rules that say you must pay tax somewhere and most EU countries have tax rates higher than UK.

I know that the govt in UK are trying to end this scheme by making everyone go PAYE. Contractors that I know have said on the one hand that the accountant has it all in hand and they have no need to worry, but on the other, some have given it up before the bubble bursts and joined their place of work as perm staff.

Hope this helps and if anyone can add to the Ltd Co / PAYE issue please do.

[Wide Body]

Many thanks Growler. The voice of experience methinks.
Any body know the best countries to work outside Europe. (The safe ones)?

[growler]

Although 20+ years in the industry, I have never actually contracted. I cam pretty close about 18months ago, hence the knowledge of free meet with accountant, but the lure of getting home every night to see wife and kids won over MONEY!!

[Leatherman]

There are places with sand,and places with sand plus other things.I'd say avoid the places with sand.

[Mice]

As an experienced expatriate in the industry, avoid the places that allow guns to carried on the streets!!

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When all else fails, read the manual!