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Tax advice needed

My husband worked for a UK based oil company and just received his final pay at the end of August 2010. He is now employed by an international oil company and will be paid in US dollars and he will be responsible for his own tax. We are planning to lay aside 40% of his basic pay into a separate account to cover his tax for the year.

From April 2010 to August 2010 he earned £26,285 and he paid £6344 in income tax. Is he able to claim some of this tax back?
He also paid £1829 in NI contributions. How does he go about keeping up his NI payment now that it wont be automatically deducted from his monthly pay?

Comments

  • mandy6979 wrote: »
    My husband worked for a UK based oil company and just received his final pay at the end of August 2010. He is now employed by an international oil company and will be paid in US dollars and he will be responsible for his own tax. We are planning to lay aside 40% of his basic pay into a separate account to cover his tax for the year.

    From April 2010 to August 2010 he earned £26,285 and he paid £6344 in income tax. Is he able to claim some of this tax back?
    He also paid £1829 in NI contributions. How does he go about keeping up his NI payment now that it wont be automatically deducted from his monthly pay?
    depending on how his new co treat his salary he will either given a p45 and get any refunded via paye; or do a tax return after 10-11 year finished and claim via self assessment.
    You can make voluntary (class 3) NIC, check out HMRC site for contact details.
  • dave2
    dave2 Posts: 264 Forumite
    Part of the Furniture Combo Breaker
    Where does he do the work and how many days will he spend in the UK each year?

    Is he an employee of the American company or self-employed?
  • He's working offshore on an oilrig in Tanzania initially but will be moving anywhere in the world eventually and is working for a Norwegian oil company and getting paid in US dollars. His work rotation will be 28 days on and 28 days off so he'll be in UK for 6 months of the year.

    He is employed by the company and isn't classed as self employed. He will be responsible for paying his own tax though.
  • It seems that your husbands new employer will not be operating UK PAYE so he will have to make a claim via submitting a tax return for 2010-11 after 06.04.10. A good idea to put 40% aside, there are some possible expenses he can claim such as travel costs to offset against his salary - on the possible grounds of travel to a temporary work place. When it comes ti9me to submit the return you will need to supply details of the employer, eg reference nos + address.
  • This is standard rotational contract. Not convinced that HMRC would allow travel costs. Does Tanzania not have an income tax that needs to be paid?
  • It seems that your husbands new employer will not be operating UK PAYE so he will have to make a claim via submitting a tax return for 2010-11 after 06.04.10.
    Do you mean 06.04.11??
  • Cook_County
    Cook_County Posts: 3,092 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Correct he will file for 2010/11 after 6 April 2011 claiming relief for Tanzanian tax - so he may owe no UK tax or indeed get a refund.
  • mandy6979 wrote: »
    Do you mean 06.04.11??
    Yes I did, my apologies proof reading specs not fully functioning
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