alitrist

hi guys,
just a quick query; is it normal to have the monthly salary paid in sterlings rather than dirhams?

any comments appreciated!

Ta
Alitrist

Hello.Kitty

I think there are arguments for and against, but Mr Kitty gets paid in Dirhams. Imo, it's better to get paid in the currency you spend on a day-to-day basis, so that you don't suddenly find yourself out of pocket when the exchange rates fluctuate.
It's best to not have to convert everything into the GBP equivalent, cos you'll find yourself going "WHAT?! £5 for a pack of muesli?!" and "What?! £1 per kilo for green beans?!" and have a fit every time you buy something.

Meow

What's 'normal' ? It all depends on the contract (local or international), role, company etc. The majority of people are paid in UAE Dirhams.

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alitrist

well, my husband is going to be on a secondment contract: the company has therefore expressed his salary in £ and the allowances in EAU drhms. Just wanted to get an opinion on whether this is common practice when on a secondment contract.

thanks v much

Hello.Kitty

when Mr Kitty was on secondment, he was paid in GBP, but that was because he was still working for the UK company (and lived in the UK) - they just decided to send him out there and paid for his accomm direct (company flat)

It'd be interesting to see what your husband's company is proposing to pay the money into... the "salary" into a UK bank account and "allowances" into a UAE one or all into one or the other?

Also, it'd be worth checking the tax implications of receiving a salary in GBP from a UK registered company, even if you are living permanently abroad. I have no idea, but it may not be favourable to you in terms of having to still pay tax on your "salary"... and it could be that the allowances are taxable too. As I said, I don't know.

Roadking

When we first came out, I was paid my salary into a UK bank account and my expenses into a UAE account. I was on a UK contract at the time and it worked fine. No tax, as I was not resident in the UK and hadn't been for three years before coming here.

Now, I get paid in AED into a local account and we transfer saving to an offshore. We maintain a Uk account just for the sake of it.

I guess it all depends on what works for you. You could just pay all the money into my local account and let me worry about what to do with it...

Meow

Your UK residency status has nothing to do with the currency in which you are paid. If the OP becomes non-resident in accordance with standard HMRC rules then income can be tax-free.

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Bijilo123

and the point that Roadking makes about keeping a uk bank account is sound advice - but try and maintain some usage of it or your UK cards or the bank will close them which gives you a problem when you return.

Millhouse

I totally agree with this. I'd hate to be thinking in GBP all the time. Can you imagine how painful rent day would be!

spart

Not unusual at all. We pay our secondees offshore in NZD, AUD, USD, EUR and GBP or local hires in AED.

alitrist

dear all,

many thanks for your replies, they have been really helpful: my husband went back to his employer and negotiated to get his salary paid in dirhams rather than £.