Contract Offer - Help!
 

I have received a contract for a teaching position at a reputable British school in Kuwait.

Everything is good except for one thing........the length of the contract.

They have offered a 1 year renewable contract.

I have noticed that the majority of schools offer 2 years so I am a little concerned at this especially as I would be looking to uproot my wife and kids - if things didn't work out and I got the push it would be catastrophic.

I also notice that the same school is advertising through agencies in the uk with 2 year contracts.

I know that things run very differently in the ME and that I have to expect temporary contracts/less job security in return for high salary and good quality of life however, I just wanted some opinions on this offer.

They are offereing about 1500 KD plus medical, heavily subsidised education fees for the kids, free accommodation and utilities plus a job for my spouse.

Obviously these benefits are tax free.

So far the school have been really helpful and the staff that work there seem to stay in excess of 5 years.


I would be really grateful for any comments as I need to decide whether I will accept this or not.

Many thanks

Re: Contract Offer - Help!
 

You could have a contract for 200 years here, though it makes no difference if they want rid of you. Personally I would not sweat - If you are an asset to the school it would be bonkers to send you home and pay to recruit someone else.

Re: Contract Offer - Help!
 

Sound advice - take it!

Re: Contract Offer - Help!
 

+ 1

Re: Contract Offer - Help!
 

Congrats.

I wouldnt bank on the partner getting a job automatically (it may be for a teachers assistant for a couple of hundred KD).

The contract period doesnt really signify anything - i have an unlimited contact. I assume you get flights back home every year as well (for the full family ?)

Depends which English School you go to will depend on the quality of the accommodation - some of it is a flea-pit !

Re: Contract Offer - Help!
 

Agree totally. Don't worry about that aspect. As per Citygent, I would find out what the job for spouse is??

Re: Contract Offer - Help!
 

Watch the UK tax position with a one year contract. Rules might be about to change, but as of today, HMRC6 Guidelines apply:

"8.5 Leaving the UK to work abroad as an employee

If you are leaving the UK to work abroad full-time, you will only become not resident and not ordinarily resident from the day after the day of your departure, as long as:

• you are leaving to work abroad under a contract of employment for at least a whole tax year

• you have actually physically left the UK to begin your employment abroad and not, for example, to have a holiday until you begin your employment

• you will be absent from the UK for at least a whole tax year

• your visits to the UK after you have left to begin your overseas employment will – total less than 183 days in any tax year, and – average less than 91 days a tax year. This average is taken over the period of absence up to a maximum of four years."

Unless you leave the UK and start working on or before 5th April this year, then it will be 6th April 2015 at the earliest before you become UK non resident (backdated to the day after you left the UK under the split-year concession). So full UK tax and NI would apply to all your overseas earnings, including allowances.

[J]

Re: Contract Offer - Help!
 

Had not read this as there is nothing that will change for me, but what that implies is that you will pay tax and NI on 10 months earnings overseas if you left the UK in June?

Is that really right?

Re: Contract Offer - Help!
 

My mrs is on one year renewable contracts. She's been renewed twice already - they've done it for next year about a month ago.

Don't worry.

Re: Contract Offer - Help!
 

Right if you do not complete the next full tax year overseas on continues employment you will be required to pay tax. If you do complete a full tax year (the following year) then you will get the tax back on the 10 months of the previous tax year (split year) from June. If the contract is to extend over a full tax year then you can complete form P85 and get tax exemption from the day you take up your post.

Class 1 NI is payable for the first 12 months if you were resident in the UK before taking up your overseas post.

Re: Contract Offer - Help!
 

Well put.

I thought britexpat76 was baiting me, so didn't reply. He's got previous.

Re: Contract Offer - Help!
 

Not baiting, genuinely interested for people coming out here. The part that confused me was;

Unless you leave the UK and start working on or before 5th April this year, then it will be 6th April 2015 at the earliest before you become UK non resident (backdated to the day after you left the UK under the split-year concession). So full UK tax and NI would apply to all your overseas earnings, including allowances.

I assume the tag line should of been if you do not complete a years service as that quote implies you will pay full UK tax and NI on overseas earnings. Not trying to trip anyone up, just found it confusing.

Re: Contract Offer - Help!
 

Many thanks for all your replies.

I have researched the tax position and yes, you are correct when you say that all income is taxable at UK rates if you don't work a full tax year.

This means that if I started on 1st September then I would have to work until 1st April 2015 to prevent HMRC taking an interest in my affairs!

I am still a bit concerned with the length of the contract that is on offer but I guess that even with a permanent contract they could pull the plug well before the tax year qualifying period and make me liable for tax.

This is a calculated risk offset against the potential to make large savings and have a better quality of life when compared to the UK.

My whole mindset needs to change as it is a completely different situation compared to the UK; it makes you appreciate the protection that UK labour laws give you despite the austerity conditions that are tightening.

The contract also specifies a 60 day probationary period and a gratuity payment of 1/2 a months salary for every full year worked.

I am now thinking whether it would be worth coming out by myself just to make sure that everything is above board. I could then look at bringing the family out next year if things are good.

I am also thinking about coming back to the UK every 12 weeks during the Xmas, Easter and Summer holidays and am wondering if there are any issues with travelling/visas etc.

Any thoughts/advice would be greatfully received.

Cheers

Ghekoman

Re: Contract Offer - Help!
 

Mr. ghecko,

How do you know the school is reputable?

Just asking.

K

Re: Contract Offer - Help!
 

It's got flushed toilets