Interview for contract in Barbados

lloydyd

Hi all,

I am going for an interview for a temp job in barbados. Its paying really good day rate of £450. All seems well aside from i have no idea on how taxation works in Barbados and how much i would actually be coming out with. Would I be taxed as normal in the UK, or would I be taxed in Barbados?

Also, its a big move (I have a wife and 3 kids at home), I would be willing to do this as its only for 3 months (possible extension) but I would only bother if its going to be worth it tax wise or I might as well get a similar job working in London....

Any idea peeps?

Thanks
L:cool:

getmore4less

Check out the expences and intermediate flight home.

for tax try(non-resident)

http://www.barbados.gov.bb/ird/

looks like it depends who is paying you(is it a barbados business/resident)

Then look at UK tax.

maninthestreet

£450 a day???

http://www.barbados.gov.bb/ird/pages/DoubleTA.htm

lloydyd

maninthestreet wrote: »

£450 a day???

http://www.barbados.gov.bb/ird/pages/DoubleTA.htm

Hmm well that kinda takes the biscuit. Double tax!!!

The tax law seems so confusing out there, plus on this website

http://www.taxrates.cc/html/barbados-tax-rates.html

getmore4less

Its is not double tax,
Its a way for offsetting the tax in each place against tax due in the other

from my quick look,
if you look at non resident rates they look OK(depending on the job) and if you are actualy paid outside Barbados there may only be UK tax to consider.

Ask at the interview, they should be able to give a rough idea ifthey have employed people before.

persa

lloydyd wrote: »

Hmm well that kinda takes the biscuit. Double tax!!!

I suspect you're missing the point. A double taxation agreement is designed to stop persons from paying tax to more than one country, rather than an agreement to tax them twice.

Based on what you have said so far, I imagine you would remain UK resident throughout (and thus liable to UK tax on worldwide gains and income), be taxed in Barbados as a foreign resident and then have to calculate your UK tax liability on the Barbados income, offsetting the tax paid to Barbados. If the tax paid abroad was more than you would have paid in the UK, you would have no further liability, but if less, you would need to pay the difference to HMRC.

No comment on the actual figures and whether this would be a good deal for you or not, because you would need to estimate how much you could earn in the UK in a comparable job, what your current marginal rate of tax was, your personal allowance, how much you would earn in Barbados, etc and that's the sort of thing you need proper advice on.

Who would you be working for? A Barbados company or a UK one looking for staff to send abroad? It's quite common for UK companies to pay for tax advice for their employees when they send them abroad - could be worth enquiring into. However, if you are looking to work abroad for a foreign company, you may be less lucky.

InsideInsurance

Also would you be an employee or a contractor? If the later the tax situation can be different if your using a Ltd or umbrella etc

persa

InsideInsurance wrote: »

Also would you be an employee or a contractor? If the later the tax situation can be different if your using a Ltd or umbrella etc

No idea re Barbados, but worth pointing out that whilst we recognise the difference between employees and contractors in this country, not all countries do.

If the OP does work abroad, they really do need some proper taxation advice.

That said, if the job is a good opportunity, good experience etc, don't let the fiscal side put you off accepting it. Tax can be a headache sometimes, but it's not the only consideration in whether to accept a new job or not.

Good luck with the interview.

lloydyd

Thanks all,

It is a Barbadian company that is looking to bring in a UK contractor. I currently operate through an umbrella so im not subject to the normal PAYE tax codes etc. If i did go for this then i would be looking to set up a LTD company that would be taxed and pay myself a dividend.

I will need to speak to the company (a Telco provider on the island) about how they would be taxing me etc.....If I am subject to normal UK taxing (as per above) then I guess i would rather have 3 months of winter in 80 Degrees than putting up with the "lovely" ahem, british winter eh.....

thanks again MSE'ers. Always a helpful bunch.