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-   -   British Citizen working in Middle East Tax (https://britishexpats.com/forum/middle-east-60/british-citizen-working-middle-east-tax-811095/)

Arsenal1886 Oct 3rd 2013 12:49 pm

British Citizen working in Middle East Tax
 
Sorry guys, I know this question must have been answered many times before, sorry for boring you but just wanted to know:

I left the UK on April 21st this year to work in Saudi Arabia. I didn't inform the authorities in the UK that I would be working in KSA, I literally just flew to KSA to start my new job.

It's only a two-year contract, after which I may return to the UK to live/work.

What tax implications will arrive from my situation? Any advise on what I should/shouldn't do at this point in time?

I've only returned to the UK once (June 17-21) and will be going again in December for 10 days.

Johnnyboy11 Oct 3rd 2013 2:35 pm

Re: British Citizen working in Middle East Tax
 

Originally Posted by Arsenal1886 (Post 10928974)
Sorry guys, I know this question must have been answered many times before, sorry for boring you but just wanted to know:

I left the UK on April 21st this year to work in Saudi Arabia. I didn't inform the authorities in the UK that I would be working in KSA, I literally just flew to KSA to start my new job.

It's only a two-year contract, after which I may return to the UK to live/work.

What tax implications will arrive from my situation? Any advise on what I should/shouldn't do at this point in time?

I've only returned to the UK once (June 17-21) and will be going again in December for 10 days.

See HMRC6 Section 8.5 on how to become UK non resident, which can be applied retrospectively through a split year concession to the day after you left the UK. Easiest way is to complete a full tax year working full time abroad, and limiting UK visits. So that's April 6th 2015 at the earliest for you.

you can also google for 'uk statutory non residency test flowchart' and take your pick.

Arsenal1886 Oct 4th 2013 9:47 am

Re: British Citizen working in Middle East Tax
 
So there's a way to legally avoid tax on all of my earnings during the 2-year contract?

Sweet :D

As long as I am not doing anything illegal, that's my main concern.

mariamalm1980 Oct 6th 2013 4:06 am

Re: British Citizen working in Middle East Tax
 
I believe this is called ordinarily resident! If you fill your tax forms there's a choice where you declare you are an ordinarily resident. Middle East is a tax free country, you can chose not to pay your tax or arrange the self contribution if you wish to continue paying your tax.

mariamalm1980 Oct 6th 2013 7:22 am

Re: British Citizen working in Middle East Tax
 
Wasn't the HM Revenue Customs runs both the tax and National Insurance?
They always send me a form to declare if there's any changes on my situation.

http://www.hmrc.gov.uk/ni/volcontr/basics.htm
What are voluntary contributions?

The National Insurance contributions you can pay voluntarily are normally Class 3 contributions, BUT if you're self-employed or LIVING ABROAD you may be able to pay Class 2 contributions voluntarily instead.

mariamalm1980 Oct 6th 2013 7:25 am

Re: British Citizen working in Middle East Tax
 
BTW! there's no volunatary contribution! do you mean voluntary contribution! :p


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