Bagshot

Hi all, a little help if possible please.I have been offered a 6 month contract in qatar starting this march, maybe extended, maybe not. What is the tax implications of the contract only running for 6 months and me having to return to the uk, I'm guessing I will be taxed heavily on the money I have made in the qatar, anyway around this ? Thanks in advance.

Bagshot

Hi there, a little help please if possible. I have been offered a 6 month contract in qatar starting this march, may be extended beyond 6 months, maybe not. What would the pretax implications be if I had to return home after 6 months, I'm guessing I would be heavily taxed back in the uk on the money I have earned in qatar ? Thanks in advance.

Johnnyboy11

Welcome to the forums!

You are liable to full UK tax and NI on your worldwide earnings until you become UK Non-Resident for UK tax purposes. Easiest way to do this is to leave the UK to work overseas on a full-time employment contract for a full tax year, and limit your visits to the UK. Your non-residency gets backdated to the day after you left the UK and there is a split year concession available from HMRC for the year(s) you leave and return. Search online for 'uk statutory residency flowchart' and take your pick. See also HMRC 6 guide, section 8.5.

Ask your prospective employer to issue you with an open ended contract. You've no employment rights out here anyway, so they'll just sack you when they don't need you anymore. Assume you will be paying UK tax and NI, so set funds aside, until you complete a full tax year - 6th April 2015 at the earliest.

Qatar is booming just now, so you'll have no problems finding work opportunities. But Qataris/employers operate a Sponsorship system, so you'll have difficulty changing employer, without a 2 year ban. Choose your employer carefully (Ideally UK or US Company, and not one from the Middle East).

Bagshot

Thanks for that, pretty much as I thought really. One final thing, what proof of earnings will I be asked for on my return, could that be fudged slightly in my favour ? Thanks.

busybee2

i know the rules have just changed but before you had to be out of the year for a whole tax year otherwise you will be taxed on it all. meow etc is the one to tell you.

mabusharikh

I thought you're only liable to pay tax on UK earnings only!

OleJanx

Oh dear...

TopNik

Hello mabusharikh,

If you are classed as UK resident for tax purposes then you are liable for UK tax on your worldwide earnings.