Do I need to pay NI while working in Abu Dhabi
Mar 26th 2008, 6:50 am
#16
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Re: Do I need to pay NI while working in Abu Dhabi
No doubt there are some British citizens looking in on this thread attracted by the header...
So, the only reason UK citizens who are or may return to the Uk sometime would pay NI is for;
1) unemployment benefits if becomes unemployed in the UK or
2) more importantly to get 30 years contributions in the bag so one day a basic state pension will be paid
NI payments are around £450 a year I think
Is this about right?
So, the only reason UK citizens who are or may return to the Uk sometime would pay NI is for;
1) unemployment benefits if becomes unemployed in the UK or
2) more importantly to get 30 years contributions in the bag so one day a basic state pension will be paid
NI payments are around £450 a year I think
Is this about right?
Well at least the man in the car showroom will retire with some dignity
N.
Mar 26th 2008, 10:33 am
#17
Forum Regular
Joined: Mar 2008
Posts: 44
Re: Do I need to pay NI while working in Abu Dhabi
Hello,
This is my first thread here. I'm a Chinese and currently working for a UK company. I'm relocating to our Abu Dhabi office next week to enjoy the sunshine and tax-free.
A letter from HR said I still had to pay UK NI contribution for the first year of my assignment.
My understanding is I'm not a British citizen and do not work/live in the UK, so why do I need to pay NI?
Any info will be highly appreciated!!
This is my first thread here. I'm a Chinese and currently working for a UK company. I'm relocating to our Abu Dhabi office next week to enjoy the sunshine and tax-free.
A letter from HR said I still had to pay UK NI contribution for the first year of my assignment.
My understanding is I'm not a British citizen and do not work/live in the UK, so why do I need to pay NI? Any info will be highly appreciated!!
Mar 26th 2008, 11:28 am
#18
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Joined: Mar 2008
Location: Abu Dhabi
Posts: 24
Re: Do I need to pay NI while working in Abu Dhabi
Just talked to someone from HR. She said I had to pay no matter I would come back to UK or not. The rate is 11% and my company will not pay that for me. It is so difficult to keep taxmen away from me!
Thanks for all your replies. I've got a better idea of the tax system now.
Thanks for all your replies. I've got a better idea of the tax system now.
Mar 26th 2008, 12:34 pm
#19
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Joined: Mar 2008
Posts: 82
Re: Do I need to pay NI while working in Abu Dhabi
NI Payments can be helpful if you're going back to use the NHS or claim benefits but given the current and projected future state of UK and other state pensions any expat planning to be here for a year or more should really consider looking at starting their own private pension with the money they save by not paying tax....of course most expats don't because it's more important to live on the palm and drive a luxury car
Well at least the man in the car showroom will retire with some dignity
N.
Well at least the man in the car showroom will retire with some dignity
N.
I wonder how many people have given up everything in the UK e.g. sold the house, the car etc. to be here and are not paying anything for future provision. On the flip side many guys I know are already getting military or police pensions already paying out in their 40's and 50's.
Mar 26th 2008, 12:39 pm
#20
Bored liberal
Joined: Feb 2007
Location: Over there ----->
Posts: 13,713
Re: Do I need to pay NI while working in Abu Dhabi
One small point - there aren't really any pensions in the ME/UAE. There are savings schemes, but they aren't anything like the same as UK pension schemes with their tax advantages on contributions or growth.
That said, there are many ways of planning for retirement/the future and anyone who doesn't do anything is sadly just storing up trouble for the future
That said, there are many ways of planning for retirement/the future and anyone who doesn't do anything is sadly just storing up trouble for the future
Mar 26th 2008, 4:56 pm
#21
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Joined: Dec 2006
Posts: 23,434
Re: Do I need to pay NI while working in Abu Dhabi
Hello,
This is my first thread here. I'm a Chinese and currently working for a UK company. I'm relocating to our Abu Dhabi office next week to enjoy the sunshine and tax-free.
A letter from HR said I still had to pay UK NI contribution for the first year of my assignment.My understanding is I'm not a British citizen and do not work/live in the UK, so why do I need to pay NI?
Any info will be highly appreciated!!
This is my first thread here. I'm a Chinese and currently working for a UK company. I'm relocating to our Abu Dhabi office next week to enjoy the sunshine and tax-free.
A letter from HR said I still had to pay UK NI contribution for the first year of my assignment.
My understanding is I'm not a British citizen and do not work/live in the UK, so why do I need to pay NI? Any info will be highly appreciated!!
I went through this with my current employer, if you are transferring overseas, you are still liable for the first year of NI then no obligation afterwards. If you were to transfer your employment to an overseas employer, you have no obligation to pay NI at all.
Check out http://www.hmrc.gov.uk/cnr/osc.htm - specifically
Workers who are sent to work abroad by their employers in countries not covered by EC or Reciprocal Agreements have to pay Class 1 contributions for the first 52 weeks that they work abroad where certain conditions are satisfied. Once the 52 weeks have come to an end the guidance and advice that we provide indicates that these employees should pay Class 3 contributions.
Class 3 Contributions are around £7.35 a week and entitle you to the same benefits as Class 1. I would suggest you talk with your employer about either recompensing you for the NI (in some way) or transfer your contract employment to another company in UAE.
Hope this helps.
Check out http://www.hmrc.gov.uk/cnr/osc.htm - specifically
Workers who are sent to work abroad by their employers in countries not covered by EC or Reciprocal Agreements have to pay Class 1 contributions for the first 52 weeks that they work abroad where certain conditions are satisfied. Once the 52 weeks have come to an end the guidance and advice that we provide indicates that these employees should pay Class 3 contributions.
Class 3 Contributions are around £7.35 a week and entitle you to the same benefits as Class 1. I would suggest you talk with your employer about either recompensing you for the NI (in some way) or transfer your contract employment to another company in UAE.
Hope this helps.
Just talked to someone from HR. She said I had to pay no matter I would come back to UK or not. The rate is 11% and my company will not pay that for me. It is so difficult to keep taxmen away from me!
Thanks for all your replies. I've got a better idea of the tax system now.
Thanks for all your replies. I've got a better idea of the tax system now.
Ok,let me get this straight: The girl is a Chinese National who works for a UK company, doesn't live in the UK and won't be going there either way, why is she liable to pay UK taxes???
This is like me working for, say British Petroleum in Dubai and paying taxes to HM...
Mar 26th 2008, 5:28 pm
#22
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Location: Abu Dhabi
Posts: 24
Re: Do I need to pay NI while working in Abu Dhabi
Ok,let me get this straight: The girl is a Chinese National who works for a UK company, doesn't live in the UK and won't be going there either way, why is she liable to pay UK taxes???
This is like me working for, say British Petroleum in Dubai and paying taxes to HM...
This is like me working for, say British Petroleum in Dubai and paying taxes to HM...
Mar 26th 2008, 6:13 pm
#24
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Location: Abu Dhabi
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May 28th 2008, 8:35 pm
#26
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Re: Do I need to pay NI while working in Abu Dhabi
HeHe!
May 29th 2008, 7:42 am
#27
Forum Regular
Joined: Mar 2008
Posts: 44
Re: Do I need to pay NI while working in Abu Dhabi
Hello,
This is my first thread here. I'm a Chinese and currently working for a UK company. I'm relocating to our Abu Dhabi office next week to enjoy the sunshine and tax-free.
A letter from HR said I still had to pay UK NI contribution for the first year of my assignment.My understanding is I'm not a British citizen and do not work/live in the UK, so why do I need to pay NI?
Any info will be highly appreciated!!
This is my first thread here. I'm a Chinese and currently working for a UK company. I'm relocating to our Abu Dhabi office next week to enjoy the sunshine and tax-free.
A letter from HR said I still had to pay UK NI contribution for the first year of my assignment.
My understanding is I'm not a British citizen and do not work/live in the UK, so why do I need to pay NI? Any info will be highly appreciated!!
Weather you are UK citizen or not, if you were "UK Resident" for tax reasons, then you will need to pay NI for 1 year especially if you working for UK company or getting paid in UK account. I am doing same . My NT (no tax) code 2 months so I had to pay income tax untill my NT code arrived ( but get your tax back in the next salary)
May 29th 2008, 7:49 am
#28
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Joined: Mar 2008
Location: Abu Dhabi
Posts: 24
Re: Do I need to pay NI while working in Abu Dhabi
Thanks Fsazhar,
Haven't got any deduction from my salary yet, maybe because I get paid in an AD account, but I was told by my colleague our HR always get it right.
Haven't got any deduction from my salary yet, maybe because I get paid in an AD account, but I was told by my colleague our HR always get it right.
