12 month contract Dubai

12 month contract Dubai

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Discussion

Kudos

Original Poster:

2,672 posts

180 months

Wednesday 23rd November 2011
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I'm looking into taking a 12 month contract in Dubai in the IT sector. Daily rate is good, also includes Health, accomodation, flights & transport (?). I have a few queries that hopefully someone can help with.

Not sure what to do, I really like Dubai but not sure if I can take the missus (not married - complication?) and 21 month daughter away from grandparents.

Tax - do I need to pay tax on earnings? Even if invoiced via a UK ltd company?

Any recommendations or anything else to consider? Anyone else done something similar?

Hitch78

6,117 posts

200 months

Wednesday 23rd November 2011
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I'd start by spending a couple of hours flicking through this bit of PH. We were all newbies once so almost everything you need to know is in here.

Generally Dubai is just a big modern city where a blind eye is turned to many of the traditional Middle East no-nos - don't take the piss and you'll be alright.

Tax will depend on where you are paid and how long you're out the country I think - I'm paid locally by a Brit firm so there are no issues. Not being able to get tax free status is rare I think.


Chilli

17,320 posts

242 months

Thursday 24th November 2011
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Agree with Hitch...The authorites generally turn a blind eye to a lot of Ex-pat activities as long as you don't take the piss. 12 months will fly by and in my experience isn't long enough to get settled. However that depends on the company...ie if they sort everything out for you, you'll be fine, but if you turn up and have to find your own place, sort out the utility company, sort out the driving licence, alcohol licence etc, etc yourself, it'll be the best part of a year before you're settled....Then it pack-up time again!

Mike Biddle

84 posts

200 months

Thursday 24th November 2011
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Re tax, strongly suggest that you consult an accountant in UK.

You would not want to work a year, go back to UK, and find the taxman waiting on the doorstep.

I left UK 20 years ago so not familiar with the rules, but back then you had to be out of the country for 13 months.

If you get paid in the UK, then your income is taxable, no matter where you are actually working.

If its paid to a limited company then there will be taxes on profits, and tax when you pay yourself from the company. Best way is to get paid in Dubai, and follow the rules applying in UK to exempt those earnings from income tax. Then you can repatriate whatever you have left over legally and without paying tax.

Mattt

16,663 posts

224 months

Thursday 24th November 2011
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Some corrections on your post Mike:

If a 'normal' employee, you need to be away for an entire tax year, so this can vary between 12 and 24 months depending on how well/badly you time your departure.

If paid in the UK, normal residency rules apply - if the income was 'earnt' in the UK then you will pay tax, if the income was 'earnt' abroad then you don't.

I assume if you're IT, then the Ltd is an IR35 sham - in which case there is no benefit AFAIK - only extra hassle. Go 'Permie' if possible, even on short term contract.

The above is just my understanding from the various dealings I've had, so may not be 100%.

Mike Biddle

84 posts

200 months

Friday 25th November 2011
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Thanks Matt, as i said, I've been gone 20 years so way out of touch with detail.

No plans to go back either.