Tax free earnings abroad
Thread Starter
Join Date: Dec 2004
Location: UK
Posts: 482
Likes: 0
Received 0 Likes
on
0 Posts
Tax free earnings abroad
Chatting tonight with an old friend who works/lives abroad regarding tax-free earnings, which he qualifies for.
Why do military personnel not qualify on overseas postings?
Why do military personnel not qualify on overseas postings?
Because they would then have to comply with the host nation taxation and social security systems.
Better the devil you know if you are only going to be there for a few years.
Better the devil you know if you are only going to be there for a few years.
Thread Starter
Join Date: Dec 2004
Location: UK
Posts: 482
Likes: 0
Received 0 Likes
on
0 Posts
So can I infer that it is possible and legal, just a lot of hassle?
Looking at the US as an example I would have a tax rate of 25% maximum (average would be 17%) vs the UK rate of 25% +40% on a large chunk of additional earnings? I would assume there is no requirement for social security payments?
This doesnt seem a bad deal at all
https://www.google.co.uk/amp/s/www.b...kets.aspx/amp/
Looking at the US as an example I would have a tax rate of 25% maximum (average would be 17%) vs the UK rate of 25% +40% on a large chunk of additional earnings? I would assume there is no requirement for social security payments?
This doesnt seem a bad deal at all
https://www.google.co.uk/amp/s/www.b...kets.aspx/amp/
Last edited by heights good; 21st Mar 2018 at 23:03.
Military personnel who are stationed abroad are subject to an inter governmental agreement called a Status of Forces Agreement which regulates all sorts of things concerning having armed people in the country. If it were not for the SOFA they could be regarded as being in possession of illegal weapons etc.
The admin, tax and discipline side of things are also covered, all in all you are better off with the advantages of the SOFA than you would be without it. Not that the soldier/sailor/airman has any choice in the matter.
The admin, tax and discipline side of things are also covered, all in all you are better off with the advantages of the SOFA than you would be without it. Not that the soldier/sailor/airman has any choice in the matter.
.
I don't own this space under my name. I should have leased it while I still could
HG, your basic tax rate is 20%.
In addition to your 'tax free' status you would probably lose a lot of allowances and benefits such as LOA as you be a resident. Accommodation charged at local rates.
Don't worry, the beannies aren't stupid.
In addition to your 'tax free' status you would probably lose a lot of allowances and benefits such as LOA as you be a resident. Accommodation charged at local rates.
Don't worry, the beannies aren't stupid.
Thread Starter
Join Date: Dec 2004
Location: UK
Posts: 482
Likes: 0
Received 0 Likes
on
0 Posts
Those are all location based and not tax status based. I dont see how these could be touched or affected.
I don't own this space under my name. I should have leased it while I still could
A valid comparison might be Loan Service Ts and Cs where you are paid and taxed (or not) by the State to which you are loaned.
Join Date: Apr 2010
Location: London
Posts: 7,072
Likes: 0
Received 0 Likes
on
0 Posts
As said above if you are overseas on military service you are protected from local tax AND local laws to some extent
If you were on attachment in Saudi Arabia the tax situation would be attractive but the local laws...................... visa, resident permit, driving licence are requiered everwyehere - and when it comes to alcohol, reading material, mixing with other sexes etc etc you are in a minefield - and you are on your own
Unfortunately the UK hasn't a major military presence in either Monte Carlo or the Brit, Virgin Islands - everywhere else that is low tax is a risky spot for anyone on their own without massive support/protection (and I'd include the USA )
If you were on attachment in Saudi Arabia the tax situation would be attractive but the local laws...................... visa, resident permit, driving licence are requiered everwyehere - and when it comes to alcohol, reading material, mixing with other sexes etc etc you are in a minefield - and you are on your own
Unfortunately the UK hasn't a major military presence in either Monte Carlo or the Brit, Virgin Islands - everywhere else that is low tax is a risky spot for anyone on their own without massive support/protection (and I'd include the USA )
Ecce Homo! Loquitur...
Back in the 1980s the on-site contractors based at sites like Mount Alice were there for extended periods and were paid tax free.
Mind you, they drank the equivalent over the bar in whisky every night. Got the DTs if we ran out - they actually laid on a medical chopper flight to bring in a resupply on one occasion.
Mind you, they drank the equivalent over the bar in whisky every night. Got the DTs if we ran out - they actually laid on a medical chopper flight to bring in a resupply on one occasion.
Join Date: Apr 2010
Location: London
Posts: 12
Likes: 0
Received 0 Likes
on
0 Posts
There is specific UK legislation which says that all UK Crown Servants working abroad must be taxed as UK taxpayers so long as they are undertaking UK Govt work. Crown servants includes civil servants, diplomats and military.
Thread Starter
Join Date: Dec 2004
Location: UK
Posts: 482
Likes: 0
Received 0 Likes
on
0 Posts
Of course there is, can’t have anyone being advantaged by service to the crown 🙄