# Tax question



## sicknotedad (Nov 4, 2016)

Hi, just had an offer of a job but need some info about tax.
I want to work in the UAE to pay off the mortgage in the UK. My wife will stay in the UK and work and our two kids are both at Uni.
If she stays and works in the UK is she considered by UK law to be the primary earner and therefore what I earn will be taxed at UK rates? I assumed (Never assume, you make an ass out U and Me) that what I earned in the UAE would be ours to keep without the taxman getting his hands on it! This could be a deal breaker.

Any advice greatly appreciated.


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## twowheelsgood (Feb 21, 2013)

Sounds wrong - you should be come non-resident for INCOME tax purposes after a while and after filling out a bunch of tax returns so HMRC can register you as such - and you stop paying UK taxes. thats not uncommon. You need something like two FULL tax years overseas before the HMRC consider you a non-resident for tax purposes. they wont actually charge you tax in the first two years but will settle for having you fill out tax returns before they write the letter.

The right person to consult is Nikkisizer on the forum.

But everything is based upon 'ties' to the UK so if you have a family there, you own a property (with or without mortgage), have children there etc etc and spend too much time there, then yes, you will be taxed as if you were there. One of the real kickers is ensuring your contract pays you here, not in the UK as thats a sure fire way of showing you aren't in the UK - getting paid into a local bank account in AED almost gets you there. I have a set of words somewhere that I was given which I appended to my tax returns which always satisfied HMRC - I will see if I can find them as they illustrate what you have to satisfy them.

Most people however manage to work their way around it but dont expect to go back to the UK much, and most people are much better off working here while leaving their family in the UK.

I'm sure it will work out tax-wise as long as you stay out of the country and you follow the HMRC guidance.


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## sicknotedad (Nov 4, 2016)

Twoheels, thanks for your help. I really appreciate your input. What you say makes sense so I'll do a lot more digging around before I sign on the dotted line. The real reason for going is to pay off that mortgage but getting a handle on what is a good salary (its 30,000AED per month which includes accommodation and transport allowance) isn't easy. Being away for a few years isn't the problem, its whether its worth the while on that salary.


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## twowheelsgood (Feb 21, 2013)

It depends entirely upon what you are doing as a job, but 30,000AED including accommodation isnt going to leave you much money to save to pay off a UK mortgage.

Can you share the market sector and the nature of the role and the type of employer here (western international, local employer etc?) as people could give you a much better idea.

But 30,000 AED inc accommodation allowance is pretty low for a skilled western expat with qualifications and experience. I had graduates on more than that in my last company.


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## sicknotedad (Nov 4, 2016)

The post is with the Ministry of Education, not as a teacher. The package includes flights and Medical but thats about it. I'll need a car and will be looking for a one or two bed apartment perhaps in somewhere like RAK.


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## Stevesolar (Dec 21, 2012)

sicknotedad said:


> The post is with the Ministry of Education, not as a teacher. The package includes flights and Medical but thats about it. I'll need a car and will be looking for a one or two bed apartment perhaps in somewhere like RAK.


Hi,
Why RAK for your accommodation?- where will your office be located?
RAK to Dubai is probably 2 hours by car, kn the morning rush hour (4 hours!!)
Cheers
Steve


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## Redindxb43 (Mar 1, 2015)

Twowheelsgood is correct. You can also claim some tax back when you have completed a year here. I did this many moons ago. The only thing you cannot do it travel back to the U.K for more than 90 days in a full tax year or you will be taxed. People try to get around them but usually get caught and it isn't worth the risk.


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## twowheelsgood (Feb 21, 2013)

Redindxb43 said:


> Twowheelsgood is correct. You can also claim some tax back when you have completed a year here. I did this many moons ago. The only thing you cannot do it travel back to the U.K for more than 90 days in a full tax year or you will be taxed. People try to get around them but usually get caught and it isn't worth the risk.


You're well out of date - the new system has a lot more 'things you cannot do' than before to qualify for non-resident for tax purposes.


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## Stevesolar (Dec 21, 2012)

twowheelsgood said:


> You're well out of date - the new system has a lot more 'things you cannot do' than before to qualify for non-resident for tax purposes.


Hi,
Agreed - just Google - Statutory Residency Test.
There is a PDF file that gives you all the details to work out whether you will be classed as resident or non-resident for tax purposes.
Cheers
Steve


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## sicknotedad (Nov 4, 2016)

Stevesolar said:


> Hi,
> Why RAK for your accommodation?- where will your office be located?
> RAK to Dubai is probably 2 hours by car, kn the morning rush hour (4 hours!!)
> Cheers
> Steve


The haven't specified a location but said that RAK is where some who are currently doing the job are based so I guess its a good location. That sounds like some commute! Thanks for the heads up!


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## sicknotedad (Nov 4, 2016)

Stevesolar said:


> Hi,
> Agreed - just Google - Statutory Residency Test.
> There is a PDF file that gives you all the details to work out whether you will be classed as resident or non-resident for tax purposes.
> Cheers
> Steve



Thanks again. Wouldn't be thinking of spending anywhere near 90 days in England, just the occasional visit.


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## Stevesolar (Dec 21, 2012)

sicknotedad said:


> Thanks again. Wouldn't be thinking of spending anywhere near 90 days in England, just the occasional visit.


Hi,
Until you have done the SRT - forget the 90 days thing - that is now only one small part of the picture.
Cheers
Steve


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## Racing_Goats (Sep 5, 2015)

twowheelsgood said:


> But 30,000 AED inc accommodation allowance is pretty low for a skilled western expat with qualifications and experience. I had graduates on more than that in my last company.


I'd disagree with that statement it's entirely different between different industries, 30k including accom is about the mark here for senior professional in education sector. If you're sensible you can comfortably save half of that amount per month especially if a good chunk of outgoings at home are covered by your wife's earnings.

My one piece of advice, consider staying in hotel accommodation to avoid the commitment and set up costs here, and (as seems likely) you will be considered liable for UK taxes then you might consider setting up a UK company and reduce your tax liability that way while keeping everything legal and above board - flights and hotel bills can be deductible, along with car hire and other costs (food, entertainment, IT equipment, laundry, 'uniforms', etc..).

Good luck


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## sicknotedad (Nov 4, 2016)

Thanks for that Racing. Quite reassuring to know that in the education sector its a respectable salary. Its difficult to get a handle on how much is a 'fair' package as peoples experiences and expectations are so different. I think I need to look at the whole tax thing because from this thread I'm getting the impression that despite the impression that the Use is 'tax free' there is still tax to pay which I need to look into.


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## sicknotedad (Nov 4, 2016)

Looks like the role will be based in RAK and around the northern territories. Good place to live and work?


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