Tax, Middle East & UK

[superman9999]

Dear All,

I have a simple question regarding taxation.

I am working in the UAE, have a one year contract. Have been living & resident in the UK for the last five years although not a national. What is the situation with the tax. Are the UK going to expect a portion or as I am now resident in the UAE am I in the clear? The money is going through my UK bank....

[ExSimGuy]

The money is going through my UK bank....
First mistake!!!!

[4HolerPoler]

Open an off-shore account in a place like Jersey & never give it another thought. HSBC get my vote; you can do it on-line.

4HP

[Uplink]

I have had nothing but trouble from HSBC. In addition you have to keep a minimum of 5000 gbp in the account. Initially I was told 3000 gbp. I have therefore opened an account with LLoyds.

Lloyds dont require a minimum account, and have opened a Euro and Dollar account with them too, I guess each has their pros and cons. I know alot of EK pilots who were snatched up by HSBC when they arrived. They all opened an account and many have regretted it. That however is the local accounts. Offshore didnt impress me from the start. Maybe this was a one off.

You will have to fill out a tax return certainly if you still have property in the UK. The best people to get in touch with are the tax consultants who come out and visit Dubai twice a year. They are based in Worthing and I have completely had a blank as to what their name is. I am sure someone will fill in the gaps.

Hope it helps. But whilst you still own property in the UK and are paying into a UK bank you are visible to the Tax man.

[BYMONEK]

Uplink

Allow me to help you out of your premature senility

The Fry Group. Formally known as Wilfred T Fry. In fact, They will be in Dubai from May 13th until 17th and they 'borrow' an office at the fairmont for the week. The man to contact is Trevor Wilkes. They aren't the cheapest but they know their stuff and are fully up to speed with current taxation rules and regs.

Telephone +44 (0) 1930 231545
Fax +44 (0) 1903 200868
E-mail [email protected]
Website www.thefrygroup.co.uk

Hope this helps :ok:

[cavortingcheetah]

:hmm:

Get out of the UK High Street!

Channel Islands talk to UK Island Revenue.

If you're only on a one year UAE contract, why not open a bank account at an international bank there? Something like Credit Suisse, or Baroda spring to mind if you're only going to use the institution for a money filtering operation.
If you want finanical advice and management off shore, well, try Sarasins. They have a web site.

[ZFT]

Providing your primary bank address is not a UK one, post 15th July 2005 when the ESD 15% tax came into force, then Channel Islands aren’t an issue.

From my experience, an additional UK High St bank account can be useful if you are a UK tax payer (property rental income etc…)

[Quod Boy]

BYMON,

Frys talk to the Revenue,believe me otherwise youre correct,expensive.

Dont think for a minute HSBC,LLoyds "offshore" dont talk to the revenue when "asked".

Offshore keeps you "legal",all the banks will squeal at he first sign of trouble.

Mines a pint.QB

[BYMONEK]

Maybe I missed the point! I personally use Fry because of investments in UK and I don't want to face a whopping bill if I ever decide to return to Blighty. Keeping it all declared and above board covers me and each year the revenue have actually payed me. Clever people, accountants! However, perhaps superman requires something more discreet in his short time abroad. The advice that others have given is probably good but there's still no harm in talking to the 'experts'. You can still avoid tax legally............i think:ugh:

[yellowsub]

OK so if I lived in the UK and have a house there but am from say New Zealand. I will still need to fill in a tax return as the place is rented. Ok so they ask how much you earned, lie or say none in the UK? Why if I am no longer living there should the UK tax men have any claim to what I earn in the UAE? So it go's into a UK bank account. I thought if you where out of the country for a certain period of time you stopped being a tax resident, bit like some rock stars who can't spend more than three months a year in the UK.

[Bugcrusher]

Its all on the Inland Revenue web pages in easy to understand statements.

[FlyingSpanner]

Now it has been a while since I have had to do it but this is what I think you have to do!!!

Upon leaving the UK for any period, you are meant to fill in a form for leaving (cant remember the number) the counrty and when you return you are meant to fill in a form for returning (cant remember that number either but its number is one more than the leaving form) to the counrty.

You are meant to be out of the country for a full tax year to be able to apply for a NT coding, if not then you have to fill in all foreign earned income and dates and places of where you are.

However if you do still have a property in the UK which is rented out you will need to fill in a tax return which you only need to fill in UK earned income if you are outside the country for a year. Not UK resident means you can tell them to p1ss off.

Alternatively, as previous posts have stated, get an offshore account and get paid through there, and as my accountant says "how good is your memory when it comes to declaring foreign earning?"

Keep Discovering!!

Spanner

[yellowsub]

So I checked the IRD site, should really have thought of that one myself but as far as I can see/read...

The tax year runs from 6th April to 5th and if your present for more than 183 days your resident. Otherwise there are bits about being allowed 90 days a year over three years. But the nuts and bolts of it after a quick read are if you leave to work on a contract full time and are absent for a full year and your not over the 183 days for the tax year when you leave then don't come back for more than 91 days in the next three your clear... Sweat dripping of ones brow.

I'm off to get the swiss sorted anyway, that kind of thing will always be handy.:ok:

[newswatcher]

superman9999, get yourself a nice strong coffee and try this http://www.hmrc.gov.uk/pdfs/ir20.htm

[BYMONEK]

Yellowsub

You're correct in that income derived from employment abroad will not be taxed but if you receive income from anything in UK, such as rental or even interest on a savings account,then tax is liable on that particular source. The good news is you're still entitled to the tax free allowance before you start having to hand over the 'lolly'!

[sajko]

TAX SUCS.....

[Jet II]

Alternatively, as previous posts have stated, get an offshore account and get paid through there, and as my accountant says "how good is your memory when it comes to declaring foreign earning?"

Seems your memory doesn't need to be that good now days. :uhoh:


Taxman eyes windfall of £1.5 billion after verdict on offshore accounts
(Filed: 06/05/2006)
Barclays to hand over customer details and other banks will follow, writes Ian Cowie
Hundreds of thousands of people with offshore bank accounts may pay a total of more than £1.5 billion extra tax after a "landmark ruling" in favour of HM Revenue & Customs.
Barclays Bank said this week that it will hand over details of customers' offshore bank accounts by June 24 as it does not intend to appeal against the Special Commissioner's judgment.
This granted the taxman powers, which are expected to affect all banks, to force disclosure of British residents' accounts overseas.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/05/06/cmtax06.xml&menuId=244&sSheet=/money/2006/05/06/ixperson.html

[Womb Ferret]

Just ask Gary Lineker's brother - when he gets out of jail of course! :sad: