jinoman

We are preparing for our move to Muscat in August. I have few queries which I really would appreciate if people with similar experiences can share their views.

UK Tax
As we will be moving there in August, I presume we will be liable for income tax here for the period we lived here. But, read somewhere that potentially we could be paying for the remainder of the year as well (our absence period), is this true? If so is there anyway we could claim back should we stay abroad for a longer period? People with some experience, please advice.

UK wrap up
As a standard procedure, I guess we will have to suspend most of our local services here although some would have to be terminated. Are there any constraints with any particular utility services, for instance, I have spoken to AA breakdown cover and they have suggested to suspend my account rather than terminating it as this would allow me to preserve my silver membership benefits otherwise when I return I’d have to start from scratch. So, I guess water, electricity and gas are standard as long as all dues are paid they can be closed. Things like internet, mobile phones are little tricky as they are on contracts and may have implications I presume.


In Muscat
Accomodation
We have the option of either moving into one of our company villas situated opposite to Hyatt hotel in a compound or to find our own, the allowance for this is between 1000 & 1100 OMR. Naturally, if we can find a place in MQB that will be of reasonable size ( 2 bedrooms) for less than our allowance, then maybe we can save some money there. However, is renting a place on our own a daunting process, especially for first timers like us? Can someone tell us what is involved in renting a place in muscat?

Schooling
Our preference is to send our 6 year old either to BSM or ABA and as a plan B we may prefer TASIM as a last resort. We are initially considering a 3 year contract, although this is renewable we may potentially return at the end of this period as we want our 6 year old to here for her further studies, particularly with an aim of her going into a grammar school here. So, has anyone been in this situation, how easy was it for your child’s transition into local UK schools after the return?

Logistics
Our company will be providing a storage space here in UK for our stuff so that we can use them when we return and also removal services to move our things to Muscat. During our recent trip to Muscat we noticed that the general cost of living in Muscat is in par with UK and finding cheaper things seems a challenge. So we wondered, whether or not it would be useful to get some interior stuff for our accommodation from UK, as we know where to get what cheaper here and also moving big stuff shouldn’t be a hasstle as this is taken care of by the company. Of course this would mean that we need to be careful with measurements, ideally fix our accommodation before we buy anything. Any thoughts on this is much appreciated.

Cheers
P

gottheTshirt

UK Tax

Fill in a P86 and send to the HMRC - you should be granted a NT code from the day you move to Muscat. However under new HMRC rules your company will not stop deducting tax until you get the NT code from HMRC.

You may also approach HMRC NI in Newcastle to convince them that you are not UK resident and hence do not need to pay class 1 NI for the first 52 weeks.

Note there is no connection in HMRC between income tax and NI.

UK wrap up

Depends on your property status: presumably you are not leaving a property behind in UK ?


In Muscat
Accommodation and logistics

I think you will find that villas are much bigger than in UK and two bedroom of any quality are not easy to find.

jinoman

Thanks gottheTshirt, I will have to clarify the tax thing further with my payroll in the office. But it is useful to know the points you mentioned, I think my case is a little different in the sense that my company's tax policy for mobile staff is different to non-mobile staff. I will come back with more information on this.

Yes we are not home owners yet here, so that is definitely a plus when you want to work abroad.

The houses in Muscat, we are looking through some popular local property websites for houses in MQB area as it will be convenient for school runs.

calgarylady

Nice to meet you here. My husband went ahead in May, I will be joining him in August [from Calgary]with our 3 kids 10,7,and 5. He is currently in a temporary accommodation which he is entitled to stay there for 2 months. I learnt that its better to stay in a company house cos if you have any repairs the company takes care of it unlike if you sort out accommodation yourself and something comes up you have to deal with the landlord. In our case my husband was shown 3 company houses last week and they were bad so he rejected them they will show him more this week.


Have you got school? My kids are on the waiting list for BSM,ABA and ASM, The American school is very far so am ruling that out.

gottheTshirt

I have just confirmed that I am heading to Oman at the weekend, but being a bit seasoned I will just stick my suitcase under my arm and sort out everything when I get there. My wife will join me in a few weeks time. She will first complain that the kitchen is not good enough and there is not enough light etc and I will apologise saying that it is the best villa available in the whole of Muscat. We will then run off to Ikea, re-buy all the bits that make it home but we throw away again after each tour. Also make sure we are stocked up on alcohol for Ramadan. My wife will then learn that in fact I took the first villa that I found and everybody else is better accommodated and better located than we are. It is the way we have been doing it for the past 35 years - no point changing now - this will be our 14th country: not counting those we have been back to more than once. Also not counting those where she has arrived and said "no I am not staying there". Believe it or not there are places a lot worse then KSA.
Looking forward to Oman. Fortunately we no longer have to worry about schools (not that we ever did too much, but still our kids managed to educate themselves).

Hope you both enjoy Oman

hong_konger

LOL.

TopNik

Hello jinoman,

If you will be absent from the UK for a complete tax year you can submit form P85 to HMRC.

However, if you are required to file a self assessment tax return for the current tax year (14/15) then you will file this instead of form P85.

gottheTshirt

But rules say "if the taxpayer is leaving to work full time abroad for a UK employer for a period of at least a complete tax year, the form P85 can be completed to enable the taxpayer to receive a code NT". most of us would prefer to receive a NT code as quickly as possible hence fill in a P85 rather than wait for the self assessment process. HMRC cannot shoot you for filling in and submitting a P85. Your company cannot now stop paying tax on your behalf until you get a NT code

The HMRC guidance to HMRC staff says:

• an employee of a UK based employer is going to work abroad for at least a complete tax year and is applying for a tax code NT

But customers who are required to complete a Self Assessment return for the tax year that they leave the UK should not complete the form P85 unless they are doing so following bullet above.


i.e Fill in your P85 (sorry for the misprint of p86 above)

TopNik

Form P85 states the following:

Do not fill this form in if:
- you have completed, or are required to complete a Self Assessment tax return for the tax year that you leave.

There is no mention of the following on form P85:

- an employee of a UK based employer is going to work abroad for at least a complete tax year and is applying for a tax code NT

gottheTshirt

May be what is says but not what it means if you want to get a NT code: do not fill in the 85 "UNLESS" applying for a NT code.
http://www.hmrc.gov.uk/manuals/eimanual/eim42940.htm

TopNik

These are HMRC guidance manuals for use by HMRC staff, the taxpayer should follow the guidance stated on form P85.

gottheTshirt

The tax payer should be more interested in not paying tax when he doesn't need to than worrying about upsetting someones mistaken protocol.

Fill in the P85 now to get a NT status before you leave or fill in a P85 or tax return form, as the case may be, to claim the tax back later.

If you have any sense you will submit the P85 just as soon as you have a firm contract and start date and apply for a NT code from the date that you start working overseas.

jinoman

Right, so things are getting a bit nervous with our dates nearing!

The contract says, the company has a tax equalisation policy which means I have to pay the amount of tax that I would have paid had I been working in UK on the basic salary. Obviously this would exclude the ~23% expat allowance in cash that I will be getting and all other benefits.

And if I understand this right, this isn't anything related to HMRC but goes towards the company funding, so I'd still have to ensure our payroll & HR take care of my returns here in UK as normally they would do so that I don't get taxed unnecessarily here. Maybe I could discuss about the P85 with them prior to my departure and ensure they are doing the right things?

jinoman

Interesting, hope you are finding things as you expected there now.

we had been there a couple of weeks back as a re-conaissance and OH has seen a villa in one of the compounds opp. to Hyatt and had the exact comments that you mentioned. Since has been on the web on some of the local estate agents website and now has a rough idea about what to expect, so it is not going to be as easy as you for me! however I liked the way you have put it in the sense that it sounds so easy and simple, will try to follow..

Schools are still a mystery for us and have asked us to wait until July. We have decide not to process visas until we have some thing concrete on schools, which means we are taking a punt by putting this process in a time when oman will not be 100% efficient, if you know what I mean..