treetops

It looks like I soon may be offered a position with a company which will entail working in Abu Dhabi. It would be based in the UK (where I currently live) for the best part of a year before moving over for roughly three years. I’m currently researching various aspects of this and came across this forum. Plenty of answers here but I’ve been jotting down questions over the past couple of weeks as they’ve come up. Here’s a selection of ones where I haven’t come across the answer, or am seeking more information on. Any help would be appreciated.

I would hope to fly in/out of Dubai due to EK serving my local airport. How are traffic and transport links to Abu Dhabi? Various posts recommending not to commute (I won’t) but how about just going infrequently between the two?

I would be working in an industrial area to the South East but have read its better living on the island or thereabouts. Is this still fair comment or are there other areas that should not be ruled out? I’m male and single and expect the company to pick up the tab.

I think I understand the first partial tax year ins and outs, but how and when would the decision be made as whether I have to pay tax for this period? If I’m here for 2 or 3 years, is it a formality? I’m not so sure I’ve read much about partial tax years on the return. It’s a few years away but what are the (current) rules for returning and is there anything I should do just now to ease the process?

I intend to keep my house in the UK, potentially renting it out. What are the repercussions of this and is it different if I rent it as it’s no longer available to me?

Is the multiple post dated cheques practice still prevalent for rent? My company would be paying but this practice seems as if it would cause issues.

I intend to keep my UK bank accounts – are there any issues to beware of with this? What are the benefits and drawbacks, if any of holding an offshore account (not necessarily UAE)?

I haven’t read a lot about local banks. Are there big differences between the main ones as regards a general purpose day to day account?

I saw a post mentioning housing tax, but only one. What does this apply to and how is it usually paid?

Are there opportunities for savings similar to ISAs and pensions in the UK where I get tax or other benefits?

Sorry for so many questions in a first post but the more I read on here the more questions I came up with.

Thanks in advance to those with the knowledge and time to answer any of these.

OleJanx

'Immigrant' suggests you'll be getting a passport ( no chance! ) You will be joining the great expatriate rat race. Lots of information out there. If you got this far, and found the bored, then a wealth of information is equally accessable!

al dente

See above

treetops

Thanks, I can't seem to change the thread title - maybe a mod could do it if one comes along.

I'm currently at Page 36 of 602 as I read through the board - not reading them all, just where the title seems relevant - so roughly back to the beginning of the year.

I'll continue reading but any information in the areas I highlighted would be appreciated.

treetops

Thanks al dente, the information is helpful but of course leads to other questions!

You mention taxis - are there also buses available and are they reliable and frequent?

What are the advantages of a BtL mortgage?

I think I know the answer to the housing tax question now and it's only applicable in Dubai, not Abu Dhabi. Can anyone confirm this?

Are these UK based pensions you top up? If so, are there any restrictions on this if your not living there?

Meow

If you let out a property you need to get your lender's permission and insure it appropriately. The lender may insist that you change the status of the mortgage.

Info on the Statutory Residency Test here: http://financialuae.me/2013/02/12/in...esidency-test/

If you are UK non-resident for tax purposes you can pay up to GBP 3,600 gross (paid net of basic rate tax) to an existing UK pension scheme for up to five tax years after leaving the UK. Any additional investments should be to offshore schemes, but we wary due to your intention to be an expat for just a short time.

Always retain a UK bank account as it's hard to open one on your return without proof of residency going back several years. You will need a local bank account for your salary.

al dente

That's what we do. BtL motgage is more expensive. Buses do exist and i'm sure people get them but I wouldn't as I'd prefer a cab.

archie159

I've not take a bus either, but know several people (westerners) who use them regularly - one says she feels much safer in them than in a taxi. They are fine, airconditioned coaches, cheap, regular. Several stops in Dubai, mostly near the bigger malls, then direct to Abu Dhabi - I think stopping only at the central bus station.

scrubbedexpat141

If you're talking about the Housing Tax / Fee in the UAE I know in Dubai it's added to DEWA and is 5% of the rent paid divided by 12 and charged, obviously, over 12 months.

I didn't pay it for 2 years but now it's bumped my leccy' and water bill 3-fold.

You'll have a blast, don't worry about the boring pension and Uk tax and renting shit...

treetops

Thanks for the inputs.

I've been looking at BtL mortgages and the interest rate with my current bank is only about 1% more than the current SVR so no big issue there (I only have a small mortgage). I've done the registering overseas for tax before for a friend so familiar with that bit.

Unfortunately "boring pension" is important to me as I'm getting near that age where I need to think about what's paying the bills in future years. I like to think I've planned OK so far but the £3,600 ongoing contribution would be very helpful. From how I read post #6 (Meow) it seems like I can claim tax relief on this amount. How would I go about that?

Any other contributions on :
Is the multiple post dated cheques practice still prevalent for rent? My company would be paying but this practice seems as if it would cause issues.

Another question has come to mind and that is whether it's customary to be paid in GBP or UAD? There are probably pros and cons with each, but what is the norm for expats whose employer is based in the UK?

scrubbedexpat141

Yeah, cheques are the norm, depends on the landlord. I pay one cheque, friends pay two, another lad pays 4. All post-dated up front. Still prevalent in Dubai, not sure about AD.

I get paid in AED. It depends on company, but most pay in AED to a local bank account. Some companies (the one I work for) pay people in the currency of their contract (construction). It depends but most are paid in Dizzers. Meow knows of a good currency transfer service, I've not used them yet but have all the information ready for when I make some more money

Meow

Your UK pension contributions are paid net of basic rate tax so you automatically get tax relief at source.

By law at least part of your salary needs to be paid in AED to satisfy the requirements of the Wages Protection System. (Yes, there are always exceptions Millhouse). As many of your ourgoings are in AED it makes sense to have at least part of your income paid in the local currency.

You'll find some other useful financial info for British expats here:http://financialuae.me/2012/05/03/gu...ated-may-2012/

Some of the numbers are out of date as we're in a different tax year but the main principles apply, especially if you take the SRT into account

treetops

Thanks again for the responses.

Can anyone say if the post dated cheques practice is common in Abu Dhabi?

Regarding pension payments with tax relief at source - I currently pay via a Salary Sacrifice scheme so I think this means my tax relief comes in the form of I don't pay tax on the amount I put in, not that my pension fund gets boosted. If I go down the route mentioned how is the tax benefit accrued into the fund?

I've heard some whispers on what may be included in the package being offered when the time comes. So far this has been:

£16,000 housing allowance
£2,000 utilities etc (electric, gas, internet, tv, phone, property tax)
£7,500 car allowance

all figures are amount in GBP per year.

Any comments on these figures and what they will mean when on the ground?

I'd followed links from other posts on here to http://financialuae.me/ previously, but have bookmarked it now and will give it a better look soon.

archie159

We pay our rent over 3 cheques, in Abu Dhabi.
That housing allowance won't get you anything much on the island - but I've not noticed you saying what you require in the way of housing. Are you just after a 1 bed appt?

treetops

Thanks archie159.

I'd be going over on my own so a one bed apartment would suffice, however my preference would be for something bigger.