Going to work overseas- Tax advice please!!

#1
Im off to work overseas for a contractor starting shortly in afghan.

Was wondering if anyone who comes here does something similar and knows how to go on with tax, as the salary is paid net.

Even if someone can point me in the right direction of an 'expert' who deals with this (and doesnt try and rip you off!)

Cheers
 
#2
Tell the tax office ASAP when you are leaving U.K. and stay out of the U.K. for 2 years. (you will be allowed short visits) get an accountant (especially if you are ltd company) advice.
Do not eat the paella in Herat PRT - unless within 100 mtrs of the crapper.
 
#3
Financial New Year.

It runs from the approx 6th of April this year to the approx 6th of April next year.

Find out some information from your local tax office before you commit to going overseas, because you could well end up getting hit with paying full tax until the start of the next financial year.

That is what I got surprised with last year.I was due to start with KBR at the End of May, however some faceless tax officer gleefully told me that if I was not out of the country by the 6th of April.....my entire years earnings overseas would be taxed. ( Rather a hectic time packing up and leaving, while bringing my start date forward nearly 2 months )
 
#4
Get an accountant

If you "go none residential" a financial year is not neccesarily april to april.

work long, holiday short, or just f.U.ck ladyboys in thailand in yer time off

GET AN ACCOUNTANT

not some sh!t kicking small town accountant, someone who knows their stuff. link to follow
 
#5
BaldBaBoon said:
Financial New Year.

It runs from the approx 6th of April this year to the approx 6th of April next year.

Find out some information from your local tax office before you commit to going overseas, because you could well end up getting hit with paying full tax until the start of the next financial year.

That is what I got surprised with last year.I was due to start with KBR at the End of May, however some faceless tax officer gleefully told me that if I was not out of the country by the 6th of April.....my entire years earnings overseas would be taxed. ( Rather a hectic time packing up and leaving, while bringing my start date forward nearly 2 months )
Thats complete bol**x

It doesnt matter what part of the year you leave, You submit a P85 to your tax office and you are not liable for tax from the day you leave. Providing you then work outside the Uk for at least a full tax year apr to Apr you will not have to pay any tax. On return you fill out a P86 and you are liable for tax from the day you return only. eg if you leave in Oct 2009 you will have to stay out of the country for at least the tax year apr 2010 to Apr 2011 to ensure you dont have to pay your tax back. But you can claim NT status from the day you leave and stop paying tax there and then. You can also apply retrospectively if you dont do it before you leave.

You are allowed back in the Uk for a max of 186 days in a single tax year or an average of 91 days per year over a period of 3 years.

I been doing this for most of the last 10 years working for KBR so I know I am correct.

But do get a specialist taccountant who deals in NT status ex pats
 
#6
I'm working overseas at the moment. I told the tax office before I went by filling out form P85. I stated on the form that my intention is to permanently leave the UK - this may change of course, and if it does, I will tell them when I get back.

If I come back to the UK I will get an accountant to do my tax return. You need to be out of the country for a complete tax year (less 90 days) to not pay tax on income, although it is a bit more complicated than that.

If anybody can recommend a good accountant please let me know as I'm not too happy with mine.

Set up an offshore dollar account - If you have a nationwide offshore account you don't pay any charges to move it onshore to a nationwide current account. If you have large amounts to move onshore do it through a company like ukforex instead as you can get a better rate doing it this way.

If anybody has any other tips or if I am talking balls then let me know....
 
#7
Oh and if you are a service pensioner, you must go to Ty Glas as your tax office they deal with service pensioners (No obtainable on HMRC site)

They are the people you should submit your P85 to and not your company asi my experience even companies who deal with NT people all the time cock it up.

You will still pay tax on your army pension but at a much reduced rate since all of your allowances will be held against your pension. Ty Glas will tell your company tax office to stop withdrawing tax at source and will instruct them to return any tax due back to you.
 
#8
RogerOut is correct. I would also add that the accountant needs to be someone who specialises in overseas contractors as it's a bit beyond the village accountant. I'd also suggest getting in touch with Abbey Expats and they can sort out banking for you.
 
#9
Some very good advice here, but there's one aspect I'm still not clear about: if you're out of the country for a full tax year (i.e. 5 Apr X to 6 Apr Y), does that entire period have to be in overseas employment, including any leave (whether in the UK or not), as I believe is the case? Or, if you were to finish your contract completely - including any terminal leave - on, say, 31 Mar Y, then take a short holiday and not get back to the UK till 7 Apr or later, would you still be tax-exempt? I've heard different answers to this one, and it could be critical to get it right. Any clued-up replies much appreciated.
 
#10
Democritus said:
Some very good advice here, but there's one aspect I'm still not clear about: if you're out of the country for a full tax year (i.e. 5 Apr X to 6 Apr Y), does that entire period have to be in overseas employment, including any leave (whether in the UK or not), as I believe is the case? Or, if you were to finish your contract completely - including any terminal leave - on, say, 31 Mar Y, then take a short holiday and not get back to the UK till 7 Apr or later, would you still be tax-exempt? I've heard different answers to this one, and it could be critical to get it right. Any clued-up replies much appreciated.
its calculated from the point when you exit/enter the country. being out the country is the key, rather than being in employment out the country.

my accountant phoned me up and told me to get out the country as I need extra days out so I just booked a package trip out the country


My understanding is that it is 90 days in on average over a 4 year period...but as before get a n accountant to advise
 
#11
My understanding is that if you have demobilised form your overseas assignment and therefore technically available for work in UK then technically you should show the date of demobilisation on your P86. which will make you technically liable for tax from that day.

If you havent managed a full tax year out of the country then you will beliable to pay HMRC tax on all earnings for that year
 
#13
thegimp said:
Get an accountant

If you "go none residential" a financial year is not neccesarily april to april.

work long, holiday short, or just f.U.ck ladyboys in thailand in yer time off

GET AN ACCOUNTANT

not some sh!t kicking small town accountant, someone who knows their stuff. link to follow
Heed this advice mate please !!!!!!!!!!!! I scribbled a cheque out for 6k last month because I didnt square things away as well as I should, I know an Armorgroup lad who got fat and healthy with a couple of buy to lets and a Range Rover and is now back to square one for not playing the game right, quick hop and skip into Saudi or somewhere similar then a trip to the land of ping pong ball firing sluts and hard liquor and your affairs may stay in order, get the gen from the only people that matter, the tax office before you go !! Have seen too many guys get a sticky willy with all the cash and end up in the proverbial..

GET AN ACCOUNTANT !! Try this guy, George K Poppleton Accountant. Phone number: 01274 884 677. Black Dyke Mills, Brighouse Road, Queensbury, Bradford, West Yorkshire, BD13 1QA

(Edited to add, I know of a bar in Patpong where if you slip one of the willy owners a 10 spot you can get your arrse fingered and balls sucked whilsy to scran chiili prawns and watch Sky)
 
#15
easymoney said:
Didn't realise there were that many arrser's working for KBR.
I certainly didnt/wasnt, I would loved a job with them Turner guys though, nothing is as funny as watching one of them, up to his eyeballs on jellies and gin fixing a Genny mid rocket attack, top blokes..
 
#16
Big Thanks to everyone- I didn't expect this much advice.... Cheers!!

I just got my contract through today and will be leaving in 2 weeks, I am going to have a look at the accountant suggested in Queensbury as I am from Liversedge so not far. I will get the tax forms mentioned and get them off before I leave and will set up an offshore account.

I think that is sufficient but if anyone can suggest anything else please let me know, Ill be looking on here more regular now that I am definately going.

PS If anyone on here is currently working at KAF, please let me know if there is anything necessary that you cant get there!!

Thanks again!
 
#17
Reni

Does the accountant you mentioned in Queensbury specialise in overseas contractors?? Just wondering cos I would rather deal with someone who is and would like to get things sorted before I go rather than trying to do it on leave (when I will be drinking instead)

If not or not sure, does anyone know of someone?

Thanks
 
#18
I know this is an old thread but I am off to work for a contractor in KAF, it's the normal 3 on 1 off rotation.
I have spoken to a couple of guys I will be working with and was told not to worry about tax etc because as long as I'm out of the country for the mandatory period each year then it will all be fine. I find this a little strange and I really do not want to be stung for a bill later in life.
I also don't know if I want full expat status as my wife and family etc will still be in UK, not sure I understand these implications,. Can I be considered as expat if I'm still comiing home to see family?
I've heard about the P85 and probably think I should follow this route.
Any advice would be very much appreciated.

Thanks All
KJ
 
#19
I too could do with the advice asked for above (Wife and kids etc staying in UK). I've got a weeks few to do in the green and 'should' have a contract to sign to go to Afghan in a day or two. I didn't realise that you had to complete a full tax year as well as however much I have over there this tax year (hoping for a June/July start). I can't see it imapcting my position too much but the I'm not expecting the initial contract to go past December due to some NATO restructuring which 'should' be renewed for 12 months but this is NATO.

I'm about to start googling for a specialist accountent but a reference and good steer would also be appreciated.

Edited to add:

Also, I'm currently serving overseas and will be leaving for the contract straight from here or maybe after a day or two in the UK, how if at all will this affect my status etc.

Cheers,

Tippers
 

ugly

LE
Moderator
#20
One would imagine it should have little effect being already there, it wont affect your status as you pay UK income tax when on ops and serving so you are UK nominal resident for tax purposes but not for non national residenccy applications, hey thats fair isnt it!
 

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