ditchmyster

iTrader: (7)

My mrs is off to work in India for a year shortly and we are not sure on the paye tax situation, i know that if your out of the country for 9 months it used to be that you didn't pay tax here, but she is being seconded and her pay will still be coming from the UK.

Will it be tax free, and if so is it still taxed at source and then you claim it back,or will it be as in europe you pay tax in the host country, any information about any aspect of working abroad would be appreciated as her HR department are useless.

The Zohan

If she is working for a UK based/registered company then she will pay tax and NI as usual.

ditchmyster

iTrader: (7)

Really, so being out of the country doesn't entitle her to claim the tax back.

The Zohan

You need to find out exactly what her remuneration package exactly is, will it include accommodation (if so where and what level of accommodation), car/travel, trips (usually 1 every 6 months) back to blightly to get the full picture and see if it really worth it.


Best ask her to check with her HR department for a definitive answer, i would imagine she isn't the first person to do this with her company so they should know. I worked in Dubai for a year for a company based and registered out there so this wasn't a big issue.

ditchmyster

iTrader: (7)

There in lies the problem, she is the first and it's higher education, chock a block with educated idiots...

She is so keen to do it that she has her blinkers on, the overall package is not a great deal better than she is already on, but the kudos that comes with the position is good for future job prospects, and that seems to be all she is focused on at the moment, everything is expensed, so there are no real worries in that department.

I was just hoping that a tax break would be the icing on the cake,so i guess i'll have to push her to turn the heat up a little on her bosses and see if she can wangle her pay being organised on the india side so as to sweeten the deal.

tony de wonderful

It's quite complicated and opaque. Basically I believe you need to become a non resident and non dom. That might be quite difficult to do for only one year especially as you plan to come back and still have ties here.

Personally I believe she will have to pay all tax but you could consult a proper tax adviser.

tony de wonderful

Just because you didn't PAYE doesn't mean you don't owe HMRC a wad of cash.

Be careful. I know of expats being met at the airport by HMRC people.

Beastie

iTrader: (2)

You have pm

Scooby Soon!

really???

The Zohan

I was in Dubai in '06/07 so do not know if thngs have changed however when i was there this was the consensus - if the period worked is greater than 1 tax year and as i said the company is not UK based/registered then it is not an issue.

Beastie

iTrader: (2)

http://www.hmrc.gov.uk/cnr/faqs_general.htm#3nr

tony de wonderful

Did you declare it on your tax return?