Warning to any noobies working abroad anywhere (eg Zurich belgium amsterdam dubai ) Warning to any noobies working abroad anywhere (eg Zurich belgium amsterdam dubai )
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  1. #1

    Should post faster

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    Default Warning to any noobies working abroad anywhere (eg Zurich belgium amsterdam dubai )

    For future searches. As not many accountants know this, and many foreign agencies hide this. Please ensure you read IR20 http://www.hmrc.gov.uk/pdfs/ir20.pdf


    Working abroad
    2.2 If you leave the UK to work full-time abroad under a contract of employment, you are treated as not resident and not ordinarily resident if you meet all the following conditions
    • your absence from the UK and your employment abroad both last for at least a whole tax year
    • during your absence any visits you make to the UK
    - total less than 183 days in any tax year, and
    - average less than 91 days a tax year. (The average is taken over the period of absence up to a maximum of four years - see paragraph 2.10. Any days spent in the UK because of exceptional circumstances beyond your control, for example the illness of yourself or a member of your immediate family, are not normally counted for this purpose.)

    If you do not meet this then you will most likely be liable to pay significant additional tax in the UK

  2. #2

    Double Godlike!

    Moscow Mule is too good to be a permie

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    Firstly, You don't want to be posting anything not related to house prices, over-taxation or celebrity in "General"

    Secondly, I think "full time Contract of Employment" is probably the thing that most contractors don't have.
    ‎"See, you think I give a tulip. Wrong. In fact, while you talk, I'm thinking; How can I give less of a tulip? That's why I look interested."

  3. #3

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    no sheeeeeeeeeeeeeeeet Sherlock

    Milan.

  4. #4

    Should post faster

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    Quote Originally Posted by Moscow Mule View Post
    Firstly, You don't want to be posting anything not related to house prices, over-taxation or celebrity in "General"

    Secondly, I think "full time Contract of Employment" is probably the thing that most contractors don't have.
    Not necessarily as 1 year contracts/rolling are oftemn offered. The post is so new people going abroad make an informed decision when calculating the earnings- In switzerland agencies wont allow you to work via LTD company, its either swiss company or agency acting (and charging) as an umbrella


    Quote Originally Posted by milanbenes View Post
    no sheeeeeeeeeeeeeeeet Sherlock

    Milan.
    Hence the 'for noobs' part in the title. If you don't have anything useful to say then shush

  5. #5

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    oh dear


    Milan.

  6. #6

    Fingers like lightning

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    In other news, the pope is catholic, etc.

  7. #7

    Bazzalike

    cailin maith 's job has never been outsourced

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    Quote Originally Posted by YHB View Post
    For future searches. As not many accountants know this, and many foreign agencies hide this. Please ensure you read IR20 http://www.hmrc.gov.uk/pdfs/ir20.pdf
    [/B]
    You mustn't know that many accountants!!
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  8. #8

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    nice one Cait doll,

    LOL

    Milan.

  9. #9

    More fingers than teeth

    BlasterBates - scorchio!

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    Quote Originally Posted by YHB View Post
    Not necessarily as 1 year contracts/rolling are oftemn offered. The post is so new people going abroad make an informed decision when calculating the earnings- In switzerland agencies wont allow you to work via LTD company, its either swiss company or agency acting (and charging) as an umbrella




    Hence the 'for noobs' part in the title. If you don't have anything useful to say then shush
    If you work as an employee of a Swiss company as most contractors do, you have no additional tax to pay in the UK on that income. This is clearly covered in the double taxation treaty. it is only used to calculate the tax rate on additonal income in the UK. The treatment of dividends is more complicated, however it won't be taxed twice (no more than a marginal top up). However this is not the normal means of income when working in countries in the EU or Switzerland .

    To make an informed decision you need to talk to a UK accountant, but any additional taxation to be paid is unlikely to be siginificant.

    I have been tax resident in multiple countries over the last few years including the UK, and it is not a problem if you are with in EU or EEC countries.

    However if you are working in countries outside the EU or EEC particularly where salaries are paid tax free you may indeed potentially face a huge tax bill.
    Last edited by BlasterBates; 30th October 2008 at 11:57.
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  10. #10

    More time posting than coding

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    Quote Originally Posted by BlasterBates View Post
    If you work as an employee of a Swiss company as most contractors do, you have no additional tax to pay in the UK on that income. This is clearly covered in the double taxation treaty. it is only used to calculate the tax rate on additonal income in the UK. The treatment of dividends is more complicated, however it won't be taxed twice (no more than a marginal top up). However this is not the normal means of income when working in countries in the EU or Switzerland .

    To make an informed decision you need to talk to a UK accountant, but any additional taxation to be paid is unlikely to be siginificant.

    I have been tax resident in multiple countries over the last few years including the UK, and it is not a problem if you are with in EU or EEC countries.

    I thought most of us use UK companies ? No ?

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