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TAX 14:14 rotation

TAX 14:14 rotation

Old Jun 20th 2014, 10:20 am
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Default TAX 14:14 rotation

Hello

I am currently working full time for an English consultancy company. I live in Bahrain and work in Saudi. The company doesn't have a partner/agent in either country or a legal structure of any kind. My friend's company sponsors me and my family here as a favour.

I am paid from the company's subsidiary (UAE offshore outsource zone) to an offshore account. And I'm considered, non resident.

I will be changing my working structure with the wife and kids going home to Wales and I will be working on a 14 days on 14 off rotation and holding a residency visa in Bahrain and working in Saudi. I will continue on the same, albeit less, package and still be paid offshore.

Whats the deal with UK taxes? What will I be liable to pay (I will be in the UK half the time) or can I continue getting paid offshore?


Thanks
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Old Jun 22nd 2014, 1:37 pm
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Default Re: TAX 14:14 rotation

Looks like the viewers are as green as me!

So, a good tax accountant it is then....
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Old Jun 22nd 2014, 2:10 pm
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Default Re: TAX 14:14 rotation

Originally Posted by Welshbahrain
Looks like the viewers are as green as me!

So, a good tax accountant it is then....
if you are in the UK for more than 90days a year you will become resident in UK for tax.

All of your income is taxable, regardless of where it is paid.

Of course, that assumes that (i) you declare that fact, (ii) it somehow becomes traceable, of (iii) you get grassed up.

Good luck.
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Old Jun 22nd 2014, 2:33 pm
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Default Re: TAX 14:14 rotation

Some of us know the answers but just get bored answering the same questions over and over again, that's all.

See this article regarding the Statutory Residency Test which applies to you.

Information on the new UK Statutory Residency Test | Financialuae's Blog

With both family and a home in the UK you have at least two connecting factors which means that you can spend a maximum of 90 days in the UK to be considered as non-resident for tax purposes. Add in one more connecting factor and your days reduce to 45. It's no longer quite as simple as a 90 day maximum for all.

Oh and if you try and hide information from HMRC that's tax evasion; a criminal offence.
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Old Jun 22nd 2014, 3:19 pm
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Default Re: TAX 14:14 rotation

Read somewhere that you could fly to Dublin (not part of the UK) then take the ferry to the mainland and enter the UK without a passport check. Here.

Just a thought...
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Old Jun 24th 2014, 10:40 am
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Default Re: TAX 14:14 rotation

Originally Posted by Millhouse
if you are in the UK for more than 90days a year you will become resident in UK for tax.

All of your income is taxable, regardless of where it is paid.

Of course, that assumes that (i) you declare that fact, (ii) it somehow becomes traceable, of (iii) you get grassed up.

Good luck.
Thanks the post Milhouse. I don't know how they would trace it if I left it offshore and didn't remit the funds. I mean, how competent is the government in tracking some dollars when they said it 'almost impossible' to track the travel of the 500 British Jihadis fighting in Iraq and Syrian!!!.

Cheers
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Old Jun 24th 2014, 10:43 am
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Default Re: TAX 14:14 rotation

Originally Posted by Meow
Some of us know the answers but just get bored answering the same questions over and over again, that's all.

See this article regarding the Statutory Residency Test which applies to you.

Information on the new UK Statutory Residency Test | Financialuae's Blog

With both family and a home in the UK you have at least two connecting factors which means that you can spend a maximum of 90 days in the UK to be considered as non-resident for tax purposes. Add in one more connecting factor and your days reduce to 45. It's no longer quite as simple as a 90 day maximum for all.

Oh and if you try and hide information from HMRC that's tax evasion; a criminal offence.
Hi Meow, sorry I am new to the forum and I couldn't find anything here searching which pertained to my situation. So, best thing was to ask all the expats here.

Thanks for the link, it was useful. Bit hard to understand but I think I can only be there 45 days (I have my own house as well as a couple of buy to lets)

Any ideas what the sentence is for, say, getting caught evading tax for one year. I did a net salary calculation and I am looking at about £30,000 in Tax, NI etc.

By the way, I looked at your site. What if I just get an advisor to invest all the income from the offshore account? I don't need it.
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Old Jun 24th 2014, 10:45 am
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Default Re: TAX 14:14 rotation

Originally Posted by Johnnyboy11
Read somewhere that you could fly to Dublin (not part of the UK) then take the ferry to the mainland and enter the UK without a passport check. Here.

Just a thought...
Good post. As well as being a proud Welshman, mother was Irish and I hold an Irish passport, I wonder what options that opens?
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Old Jun 24th 2014, 11:05 am
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Default Re: TAX 14:14 rotation

Originally Posted by Welshbahrain
Thanks the post Milhouse. I don't know how they would trace it if I left it offshore and didn't remit the funds. I mean, how competent is the government in tracking some dollars when they said it 'almost impossible' to track the travel of the 500 British Jihadis fighting in Iraq and Syrian!!!.

Cheers
The problem is that the taxman would rather chase a small individual like yourself than the cheating bastards at Vodaphone.
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Old Jun 24th 2014, 12:19 pm
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Default Re: TAX 14:14 rotation

The tax inspector is probably reading this as we ponder the question !
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Old Jun 24th 2014, 1:10 pm
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Default Re: TAX 14:14 rotation

Originally Posted by Welshbahrain
Hi Meow, sorry I am new to the forum and I couldn't find anything here searching which pertained to my situation. So, best thing was to ask all the expats here.

Thanks for the link, it was useful. Bit hard to understand but I think I can only be there 45 days (I have my own house as well as a couple of buy to lets)

Any ideas what the sentence is for, say, getting caught evading tax for one year. I did a net salary calculation and I am looking at about £30,000 in Tax, NI etc.

By the way, I looked at your site. What if I just get an advisor to invest all the income from the offshore account? I don't need it.

If you have both family and a home in the UK they count a two connecting factors so that means you can spend up to 90 days in the UK. BTL properties don't count as they are not available for your use.

Whether the income is kept offshore or brought into the UK doesn't make any difference to your residency status. Watch out for unscrupulous salespeople masquerading as advisers.

The evasion comment was in reference to what others are suggesting. The consequences can be quite severe. Not just a request to pay the tax owed and a fine, but also a criminal record.
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Old Jun 24th 2014, 1:35 pm
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Default Re: TAX 14:14 rotation

Originally Posted by Johnnyboy11
Read somewhere that you could fly to Dublin (not part of the UK) then take the ferry to the mainland and enter the UK without a passport check. Here.

Just a thought...
There are passport checks on the ferries between Ireland and Wales (Fishguard, Pembroke and Holyhead) however they are usually not scans or records more just to check for illegal immigrants and customs stuff. You'd be unlucky to be detected that way.
But should you decide to live in Ireland you'll be subject to Irish tax based on residency. However in Ireland you'll get 183 days in the country before it's applied and we do not have the same connecting factors rule as the UK. It is time based only.
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Old Jun 24th 2014, 4:50 pm
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Default Re: TAX 14:14 rotation

Originally Posted by OleJanx
The problem is that the taxman would rather chase a small individual like yourself than the cheating bastards at Vodaphone.
Easy meat!
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Old Jun 24th 2014, 4:55 pm
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Default Re: TAX 14:14 rotation

Originally Posted by Meow
If you have both family and a home in the UK they count a two connecting factors so that means you can spend up to 90 days in the UK. BTL properties don't count as they are not available for your use.

Whether the income is kept offshore or brought into the UK doesn't make any difference to your residency status. Watch out for unscrupulous salespeople masquerading as advisers.

The evasion comment was in reference to what others are suggesting. The consequences can be quite severe. Not just a request to pay the tax owed and a fine, but also a criminal record.
Good info regards the BTL, thank you. The thing is, I will definitely be there for my rotations.

I get the point about the money being offshore or brought into the UK but how would the UK government even know if I earned overseas and kept the money offshore? I don't need the money it could just be invested. I could pay the mortgage, living costs etc from my UK bank account for a couple of years as theres about a 100k in the Barclays account.

What kind of fines are we talking? Ive already got a record so as long as its not jail time.......

I just noticed your link. Interesting. Do you visit Bahrain or Saudi or UK ever?
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Old Jun 24th 2014, 5:00 pm
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Default Re: TAX 14:14 rotation

Originally Posted by weasel decentral
There are passport checks on the ferries between Ireland and Wales (Fishguard, Pembroke and Holyhead) however they are usually not scans or records more just to check for illegal immigrants and customs stuff. You'd be unlucky to be detected that way.
But should you decide to live in Ireland you'll be subject to Irish tax based on residency. However in Ireland you'll get 183 days in the country before it's applied and we do not have the same connecting factors rule as the UK. It is time based only.
All good info, thanks. Ive been looking at property in Cork. If we sold up in England, we'd get a bloody palace.
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