Help - Tax, Income - Evaluating offer and very confused!
Jul 3rd 2014, 6:30 pm
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Joined: Jul 2014
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Help - Tax, Income - Evaluating offer and very confused!
Hello,
I was hoping I could pick your collective brains.
I work in the mining industry and have lived/studied around the world for years - I've been back in the UK 18 months full time and I've got itchy feet.
I have an offer, for a job in the Democratic Republic of Congo - it's an interesting proposition - legit UK company... not one of those emails!
Now, the nitty gritty. There offer is a bit rubbish financially, benchmarking against friends it's quite a lot less. In the mining industry typically salaries are often negotiated net of applicable taxes due to the complex nature of expat tax and liability if you return home for more than your 90 days.
You also get the work on Rotation - 6 weeks on 2 off, 9 on 3 off etc with travel on company time and paid... but this is only 35 days hols with 3 economy flights.
Bearing in mind that it's virtually the same as my UK salary (25 year old engineers wage - covers the essentials in the UK) and the DRC is expensive for expats in terms of heavily taxed luxury goods like drinks in bars and western mod cons like the internet - I wanted a bit of a step up so that I can pay off debt and start setting up a decent pension pot and house fund. Also I want some compensation for living in a politically unstable area with recent rebel activity!
The tax situation is as follows:
A portion of the salary will be paid locally. This portion of the salary will be eligible for DRC income tax. The remainder of the salary will be paid in a mutually agreeable bank account. It is your responsibility to ensure that you adhere to any tax obligations on this portion of your salary.
Paid in USD.
Now between the lines - is the remaining portion liable to UK tax? I will not be earning anywhere near enough to get an expat offshore account and will be transferring monthly to pay off debt from my masters degree.
Where do I stand in the UK regarding double taxation and taxation of the 'offshore' earnings?
Anyone know of an offshore USD account with low minimum income and little to no initial investment?
Thanks for any help guys, I owe you all a beer!
I was hoping I could pick your collective brains.
I work in the mining industry and have lived/studied around the world for years - I've been back in the UK 18 months full time and I've got itchy feet.
I have an offer, for a job in the Democratic Republic of Congo - it's an interesting proposition - legit UK company... not one of those emails!
Now, the nitty gritty. There offer is a bit rubbish financially, benchmarking against friends it's quite a lot less. In the mining industry typically salaries are often negotiated net of applicable taxes due to the complex nature of expat tax and liability if you return home for more than your 90 days.
You also get the work on Rotation - 6 weeks on 2 off, 9 on 3 off etc with travel on company time and paid... but this is only 35 days hols with 3 economy flights.
Bearing in mind that it's virtually the same as my UK salary (25 year old engineers wage - covers the essentials in the UK) and the DRC is expensive for expats in terms of heavily taxed luxury goods like drinks in bars and western mod cons like the internet - I wanted a bit of a step up so that I can pay off debt and start setting up a decent pension pot and house fund. Also I want some compensation for living in a politically unstable area with recent rebel activity!
The tax situation is as follows:
A portion of the salary will be paid locally. This portion of the salary will be eligible for DRC income tax. The remainder of the salary will be paid in a mutually agreeable bank account. It is your responsibility to ensure that you adhere to any tax obligations on this portion of your salary.
Paid in USD.
Now between the lines - is the remaining portion liable to UK tax? I will not be earning anywhere near enough to get an expat offshore account and will be transferring monthly to pay off debt from my masters degree.
Where do I stand in the UK regarding double taxation and taxation of the 'offshore' earnings?
Anyone know of an offshore USD account with low minimum income and little to no initial investment?
Thanks for any help guys, I owe you all a beer!
