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chrissmith40
3rd November 2013, 03:34
I am new to contracting and very naive, I have been trying to find an umbrella company. I live in the Philippines and my contract is in Abu Dhabi, also I have not lived in the UK since 2008. Since March 2012 I have had no property in the UK.

One company said they could not offer me umbrella services because I did not have a permanent UK address (my agency and the umbrella company I approached are both UK based).

Another company said they could not accept me because my contract period was to be spent totally in Abu Dhabi. They also stated that it was against tax legislation for them to deal with me because I did not spend all or most of my contract time in the UK.

Can anyone offer advice please to a novice, and if possible a good company that will accept me.

many thanks

Chris

cojak
3rd November 2013, 09:16
This is the ONLY time I would advice this but I would google '90% returns' and find one of those 'wealth management' umbrellas as you appear to be a perfect candidate for them; you have no connection with the UK whatsoever and HMRC won't be in the least bit interested in you.

Don't bother asking for recommendations for that sort of umbrella here though because I won't let them through.

northernladuk
3rd November 2013, 15:11
This is the ONLY time I would advice this but I would google '90% returns' and find one of those 'wealth management' umbrellas as you appear to be a perfect candidate for them; you have no connection with the UK whatsoever and HMRC won't be in the least bit interested in you.

Don't bother asking for recommendations for that sort of umbrella here though because I won't let them through.

Is that because all other times you would advise it? :D

LisaContractorUmbrella
4th November 2013, 15:27
If you are resident in the Philippines then your income will be taxable there and, whilst I am no expert on their taxation system, it would appear that tax would be due on your worldwide income Tax TIES: Philippines - Income Tax | KPMG | GLOBAL (http://www.kpmg.com/global/en/issuesandinsights/articlespublications/taxation-international-executives/philippines/pages/income-tax.aspx)

DirtyDog
4th November 2013, 16:40
If you are resident in the Philippines then your income will be taxable there and, whilst I am no expert on their taxation system, it would appear that tax would be due on your worldwide income Tax TIES: Philippines - Income Tax | KPMG | GLOBAL (http://www.kpmg.com/global/en/issuesandinsights/articlespublications/taxation-international-executives/philippines/pages/income-tax.aspx)

If that's true then as long as you are over the lower income threshold for income tax, you're laughing.

LisaContractorUmbrella
4th November 2013, 16:43
If that's true then as long as you are over the lower income threshold for income tax, you're laughing.

Why :confused:

DirtyDog
4th November 2013, 18:57
Why :confused:

Because the income tax system in the Philippines is geared towards those earning higher incomes. I forget the exact figures, but it's something along the lines of if you earn £1000 a month or less, then you pay 30% income tax; if you earn more than that then you pay 10% income tax.

If you were an expat, you used to pay 0% income tax, but the local rich lobbied enough to get it changed so that they pay a much lower tax rate.

LisaContractorUmbrella
5th November 2013, 08:11
Because the income tax system in the Philippines is geared towards those earning higher incomes. I forget the exact figures, but it's something along the lines of if you earn £1000 a month or less, then you pay 30% income tax; if you earn more than that then you pay 10% income tax.

If you were an expat, you used to pay 0% income tax, but the local rich lobbied enough to get it changed so that they pay a much lower tax rate.

Oh OK I get it - same as the tax system in Hong Kong