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Saudi Arabia

Started by BigSoy, January 28, 2007, 19:03:36 PM

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BigSoy

Quote from: SamIt just means that your company will pay your tax bill.

If you are domiciled in the UK, your overseas income will always be taxed here if it is less than the prevailing rate here.

If youre a US citizen you pay taxes on your income even if you dont live there anymore! How stupid is that.

Cool, thanks for that Sam.

Wonder if the yanks will be pretty thin on the ground in Saudi then :/
"Within your 'purview'? Where do you think you are, some f**king regency costume drama? This is a government department, not some f**king Jane f**king Austen novel!"

Sam

Well its the same for them no matter where they go.

Dave

surely not if they have a double taxation treaty with the country in question

Im pretty sure that an American working in London would simply pay tax to the UK

Sam

They would, but only because UK tax > US tax.
They only pay the difference. As we would. If you worked in the USA for a year say, and paid 0% income tax as they do in Florida, then youd have to pay your 40% to the UK exchequer here.

http://www.apcac.org/77?PHPSESSID=7fed6c921682011970c4b46517d162c8

The difference is if you become domiciled elsewhere the UK will not tax you anymore whereas the US taxes its citizens regardless.

Obviously if you were a USC and married say a UK woman and then moved here and never wanted to go back you could just say sod it. The FBI have better things to do.

Dave

yeah - just been reading about it - seems the US is the only western country that does it - tis a bit harsh of them

Serious

Quote from: Davedont think it is tax free unless he is there for more than 6 months

HM customs & revenue require you to pay tax on all your worldwide earning IIRC - so youd need to be officially residing abroad to avoid UK income tax.

Quoteif youre in the UK for 183 days or more in a tax year, youre a resident for that year for tax purposes

Government

So providing hes out of the country for more than six months in any year he can claim back UK tax That would mean two four month stints abroad.

I know medical peole who have done this. My brother did when he started working for P&O.

Dave

erm - why have you just quoted my post in order to basically repeat what Ive already stated?

Serious

Because your post suggests continuity, which isnt needed. providing you are in the UK for less than 183 days then you qualify for a refund.

Secondly if you take the six shortest months abroad then you are still liable for tax.

Feb = 28, april june september november = 30 each

Leaves 7 months with 31 days, 6*31 = 186 days so you would pay tax

OK Im being a bit pedantic but the UK tax office is worse, people have actually been caught out on that.

Dave

well it was a brief reply to your post that said

Quote from: SeriousIIRC its tax free too.

which it clearly isnt as he said in the first post he was only going for 3-4 months

still you got to do a google and then post a bit about a subject that on the first page of the thread you didnt really know a lot about.  :mrgreen:

Serious

Wrong, he has to be outside the country for at least 183 days during a tax year, 184 in a leap year. Months do not come into it as they can give the wrong answer!

Mongoose

they sort of do here Serious, since hes only going for 3-4 of them. Doesnt matter which 4 months you pick, thats always less than 183 days unless you start using some bizarre  calendar.

Serious

but if he does two lots in a financial year he can claim all the money back. Its far more money, equal to at least 33% of the money he would otherwise get after tax. If he gets Ã,£15,000 for 4 months then Ã,£3.75K goes to UK gov in tax, work double and he gets Ã,£30K and saves Ã,£7.5K in tax.

Screwing the taxman is always worth it if you work abroad! ;)

Dave

clutching at straws there a bit serious

(tis a bit funny - on page one you didnt know what you were talking about & gave a one line repy that was incorrect - page two youve done a google & are now the resident expert  :mrgreen:  )

Sam

If youre outside for more than 183 days then you are not considered domiciled anymore and lose associated benefits.