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New role in Azerbaijan

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    New role in Azerbaijan

    I am in the final process of getting a job in Baku. 3 weeks on, 3 weeks off. Does anyone have any advice as to how I should approach the tax situation? If I holiday in our Gite for 4 weeks a year, does this mean I can claim non residency status (or whatever it is called) in the UK and pay tax locally in Baku (favourable if you are non resident).

    Any other suggestions?

    #2
    Originally posted by Zoiderman View Post
    I am in the final process of getting a job in Baku. 3 weeks on, 3 weeks off. Does anyone have any advice as to how I should approach the tax situation? If I holiday in our Gite for 4 weeks a year, does this mean I can claim non residency status (or whatever it is called) in the UK and pay tax locally in Baku (favourable if you are non resident).

    Any other suggestions?
    To quote a certain famous tennis player - you cannot be serious
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      #3
      Originally posted by Zoiderman View Post
      I am in the final process of getting a job in Baku. 3 weeks on, 3 weeks off. Does anyone have any advice as to how I should approach the tax situation? If I holiday in our Gite for 4 weeks a year, does this mean I can claim non residency status (or whatever it is called) in the UK and pay tax locally in Baku (favourable if you are non resident).

      Any other suggestions?
      From the HMRC website

      Q3. In what circumstances would I become non-resident?
      A3. Normally if you leave the UK to work abroad full-time, you will become not resident and not ordinarily resident in the UK if:
      • your absence and employment from the UK covers a complete tax year (that is 6 April to 5 April)
      • you spend less than 183 days in the UK during the tax year
      • your visits to the UK do not average 91 days or more a tax year over a maximum of four years


      From 6 April 2008, days when you are in the UK at the end of the day, that is midnight, are normally counted as days spent in the UK.
      "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

      Comment


        #4
        Originally posted by LisaContractorUmbrella View Post
        To quote a certain famous tennis player - you cannot be serious
        That's right Lisa, I simply post fatuous questions for peoples entertainment....

        Yes, I am serious. As I understand it, you can claim non domicile for tax purposes if you are here for less than 182 days a year. I am merely asking if this is a good way to go, given I will be out of the country in Baku for 182 days a year

        Comment


          #5
          Originally posted by DaveB View Post
          •you spend less than 183 days in the UK during the tax year
          So I could be non domicile down to this?

          Comment


            #6
            Originally posted by Zoiderman View Post
            That's right Lisa, I simply post fatuous questions for peoples entertainment....

            Yes, I am serious. As I understand it, you can claim non domicile for tax purposes if you are here for less than 182 days a year. I am merely asking if this is a good way to go, given I will be out of the country in Baku for 182 days a year
            OK sorry but it was the comment about the 4 weeks on holiday that prompted that response - perhaps just badly worded. It will depend on the duration of the contract - the general rule of thumb is that if you are working overseas for longer than 6 months you will become liable for local taxation, up until that point you will continue to pay tax in the UK. However, tax rules for working overseas are very complicated and for somewhere like Azerbaijan I would be inclined to seek specialist advice
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            Comment


              #7
              Originally posted by Zoiderman View Post
              So I could be non domicile down to this?
              No, you have to meet all three criteria.

              IIRC you cannot simply stop paying tax becuse you are *going* to be out of the country, you have to have been out of the country for the relavent period already, at which point you can claim back tax paid as appropriate and register as a non-dom going forwards.

              But I'm not an accountant, you should probably talk to one.
              "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

              Comment


                #8
                Originally posted by LisaContractorUmbrella View Post
                OK sorry but it was the comment about the 4 weeks on holiday that prompted that response - perhaps just badly worded. It will depend on the duration of the contract - the general rule of thumb is that if you are working overseas for longer than 6 months you will become liable for local taxation, up until that point you will continue to pay tax in the UK. However, tax rules for working overseas are very complicated and for somewhere like Azerbaijan I would be inclined to seek specialist advice
                Thanks Lisa, the 4 week in the gite further complicates the issue, as we're actually thinking of relocating there outside of school, so we'd be non dom in all the countries, bar Azerbaijan

                Comment


                  #9
                  Originally posted by Zoiderman View Post
                  Thanks Lisa, the 4 week in the gite further complicates the issue, as we're actually thinking of relocating there outside of school, so we'd be non dom in all the countries, bar Azerbaijan
                  You need to be really careful Zoiderman - it used to be that if you spent less than 90 days in the UK you would have no tax liability here but there was a huge case quite recently where a chap was successfully pursued by HMR&C because, even though he was not resident in the country for more than 90 days, he still had 'interests' here. If you maintain any kind of financial consideration in the UK you could end up being liable for tax still.
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                    #10
                    Originally posted by LisaContractorUmbrella View Post
                    You need to be really careful Zoiderman - it used to be that if you spent less than 90 days in the UK you would have no tax liability here but there was a huge case quite recently where a chap was successfully pursued by HMR&C because, even though he was not resident in the country for more than 90 days, he still had 'interests' here. If you maintain any kind of financial consideration in the UK you could end up being liable for tax still.
                    I think we'd still own one house, but that it would not be rented out, as we'd use it in term time.

                    To clarify this, I would be out of the country as a non dom, the wife and kids would stay all the tiem term time, and I would return here in the 3 week down tiome, in term time, but in France for non term time, if that makes sense.

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