Overseas salary/income

[JRINT]

Hi,

I have previously worked as Contractor via ltd company but have recently started new 6 month assignment on staff basis for UAE based company for a job based in Algeria. Money is paid monthly in US$. Client deals with local tax but I have to deal with UK taxes. I will not pass the residency tests as will be in UK over 90 days thus am potentially facing a big tax bill.

As its a salary and the contract is in my name my accountants tell me I cant put it into my ltd company. I have searched on the web and cant find any other solutions.

Does any one know of any way of being more tax efficient e.g using an offshore intermediary to enable me to invoice via my ltd company or any other payment mechanism?

Thanks,

James.

[javadude]

As its a salary and the contract is in my name

I'm no expert but that sounds like you're firmly an employee and anything you want to try to do things differently will be picked up by HMRC as purely tax avoidance/evasion.

[ASB]

I don't think there are any DTA in place between the UK and the Emirates.

The income should be declared in the UK via tax return and credit for any tax paid given,

If you want to be potentially more efficient then you will need to change the contractual arrangements to be, for example, between "your co" and the employer. Where and how that gets taxed are a matter for the individual circumstances.

If it were uk resident (which does not necessarily mean uk incorporated) then it will be taxed in the UK on its worldwide income. If it is not then it will be taxed appropriately (e.g. I believe not at all if it happened to be a CI or Gib or similar company). Of course incorporating there does not necessarily prevent it being or becoming UK resident. Assuming, however, that it doesn't then any income you make from said company will still be taxable in the UK (as a resident being taxed on your worldwide income).