# Income Tax: UK but employed in Saudi



## rushy_23 (Jun 13, 2010)

Hi all. New to the forum. I was browsing as a none member and have found brilliant sources of info! 

I've done various searches but still I have very specific questions with regards to my income tax questions on my earnings while working in Saudi.


To set the scene, I work for a UK Telecoms company but based in Saudi, I arrived here on 14/01/2010 and am expected to be here for around 18 months.
I expect to cover one full "tax year" while out here, at the moment Im being paid via the UK PAYE scheme but I am soon to be signing a local contract for the rest of the period. Thus will be paid in SAR directly into a Saudi bank account.

I expect to be on the local contract by around August time.


*My concerns:*
- Will I be entitled to tax free earnings on both saleries during this tax year (I have no commitments back in the UK so consider myself resident in Saudi)

- If yes to above, would I just claim back the tax on my PAYE earnings and then are the saudi monies just left untouched?

- I've read about capital tax gain on other threads. Im not too clued up on this topic, but from reading I understand this is tax on anything you "sell" whilst out here? I wont have any assets in my posession whilst out here so assume this will not effect me?

- I did not fill out a P85 form when I left the UK as initially it was only supposed to be 6 months I am out here. Will I be able to back track this application.


Just to point out, I will not spend anywhere near 89 days in the UK during this current tax year so will not fall into this trap. Its other traps I am worried about at the moment!!


Sorry for the lengthy post, but any solid information on the topic is excellent. Many many thanks in advance.

Rushy


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## Elphaba (Jan 24, 2008)

That is something that needs to be looked at properly and you may need professional advice. You cannot expect most people on a forum to understand complicated HMRC tax rules and sadly, I see too many people trying to answer with wrong information. I advise on these matters profesionally, so feel free to PM me (once you have made 5 posts).

-


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## rushy_23 (Jun 13, 2010)

Thanks for the reply. I understand the situation is more complex than the usual tax concern.

I will have to chase this up when i return in July. I strongly disagree with the statement "tax doesnt have to be taxing"! :confused2:

That would be great if you could shed some further light (5 post pending). Again many thanks.


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## sham_ip (Jun 12, 2011)

rushy_23 said:


> Thanks for the reply. I understand the situation is more complex than the usual tax concern.
> 
> I will have to chase this up when i return in July. I strongly disagree with the statement "tax doesnt have to be taxing"! :confused2:
> 
> That would be great if you could shed some further light (5 post pending). Again many thanks.


Hi Rushy,

I'm wondering if are still in Saudi Arabia, and would like to get some info about the IT market there. I'm currently working as Network Engineer for a big ISP in Canada, Alberta and I have 4 years of experience, and MSc. in Electrical Engineering. I'm thinking to move to Dubai or Saudi Arabia as i know there is good tax-free salary there. 
How should I start? Do you think it's a good step to do, or it's better to get more experience here in Canada first?

Thanks

Thanks


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## jrp928 (Jul 27, 2011)

I have been out for nearly 10 years now, but I would think network engineers would be in demand in Saudi still . I had some contact with Saudi Telecom, and there were many expats in network control, etc, as internet was just coming on then.
Find a recruiting agent who handles your skills in ME. Dont believe anything they say about conditions, housing etc. Note that Western passports control your pay scale to a high degree, which is why many other nationalities try for western residence - many Indians, Philipinos etc migrate to Canada etc, then work in ME for higher wages. Try for a job with a western based company, who will understand what level of housing will be acceptable, and treat you better than local employers.
jrp


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