Tax Advice if anyone can help please
 

Hi there, I am a 31 year old male who lives in the U.K. with my family.
I have been offered a job in Baku which is 28 days on 28 days off
I have to travel in my own time so I work out I will be home for 27 days at a time so I should be spending 175 days a year in the U.k and 188 in Baku. My employer has said that they will pay be in $ into an offshore bank account and they will take 6% off at source. Does anyone know if I would just pay U.K. tax on the full ammount of what I earn?

Thank you very much for your help and advice in advance.

Ian ;)

Re: Tax Advice if anyone can help please
 

The current tax situation is that if you average 90 days a year in the UK (max 183 days in any one years and averaged over 4 years) you will be deemed UK resident and all your income will be liable to UK tax.

From April 2013 the number of days you can spend in the UK may reduce is you have several 'connecting factors' such as a hiome available for your use and family resident there.

Re: Tax Advice if anyone can help please
 

Thank you for that Meaow, I have been told that the company will take 6% Azerbaijan tax from me and will issue me with a tax certificate that I show to the UK, It doesn't sound like the job offer is going to be worth it as It sounds like I will be paying the same Tax I do already

Re: Tax Advice if anyone can help please
 

You will be liable to tax on all your earnings and if some Azerbijan tax is taken at source the balance will be taken by HMRC assuming there is a dual taxation agreement with Azerbaijan. From what you have said you will remain UK resident so there are no tax benefits.

Re: Tax Advice if anyone can help please
 

Ah well, greatly apreciate your help and advice Meaow, looks like this job is not worth tha hassle or the time away from my family

Cheers

Ian

Re: Tax Advice if anyone can help please
 

Income tax there is 6 percent???? Or is that some sort of special non-resident deal??

Re: Tax Advice if anyone can help please
 

Seems to be 14% but life is too short to read much of this:

http://www.deloitte.com/assets/Dcom-...eghn_en_AZ.pdf

Re: Tax Advice if anyone can help please
 

You've posted the important bit - thanks....... not that it WAS important..... :o

Re: Tax Advice if anyone can help please
 

I thought maybe you were considering it as a retirement home ;)

Re: Tax Advice if anyone can help please
 

I also though 6% seemed very low, especially from what I have been reading up on.
The exact words in the email are .....

We pay your tax in Baku what we do is increase your rate by 6% which is the amount we pay for you in Baku. We then issue you a tax cert at the end of the year which you can offset against your tax in UK

Ian

Re: Tax Advice if anyone can help please
 

Hi, you don't have to spend your 'off' time in the UK. Why not meet up with the family for holidays in Florida, or Malaysia, or even Ireland? As long as you watch the average and maximum number of days you spend in the in the UK. See HMRC6, Section 8.5 for the detail.

Remember that you need to work a full tax-year overseas to become UK non-resident, so that's 6th until April 2014 at the earliest. Get this concession wrong, then both UK Income Tax and NI contributions apply to all your overseas earnings, ouch!

Baku has huge gas reserves which are just beginning to come onstream. So an up-and-coming-place for sure.

[J]

Re: Tax Advice if anyone can help please
 

Some good information here.

Having worked as a rig pig on rotation myself for several years ago in the late 80's & 90's I was none the wiser of my tax obligations.

Re: Tax Advice if anyone can help please
 

Bit misleading.

A full tax year LESS 90 days in current year.

Re: Tax Advice if anyone can help please
 

I take it back, received an email today confirming they had made a mistake and it was actually 35% Tax which the company would cover.
So looks like I might be workign in Baku soon, am sure their oil rigs are much the same as ours, just a little bit hotter in the summer ;)

Re: Tax Advice if anyone can help please
 

Hi, did you make it out to Baku? If so, I'd be interested to hear...