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Working Overseas tax/pension confusion!
skaff
Posts: 61 Forumite
in Cutting tax
Hi everyone!
I posted this orignally in the pension forum but have been advised to post here as well.
I am just coming to the end of a 22 year Army career and with it am entitled to my pension of c10K/annum. I have also been extremely lucky that i have been offered a job working overseas (oil industry) for a US company. The job pays well (40% tax bracket not including my army pension) and has a contributory pension scheme too (matched by the employer up to 10% of salary). I will be out of the country for 6 months in every year but have had it pointed out to me that i will not qualify for seafarers allowance as oil ships do not count as 'ships'!
I want to start this job with my tax affairs in order rather than jiggle them afterwards and would appreciate a less naive eye than my own!! My thoughts are as follows:
1. As an employee of a foreign employer i would not be taxed at source but will instead put in a Self Assessment form each year even though, as i am not self employed, i would not be able to claim expenses to offset my tax liability.
2. Any pension contributions i make i am entitled to a tax rebate for so would be best advised to put as much as possible into the pension scheme.
Beyond that i am stuck! Are those 2 assumptions correct? Also, what other considerations should i be thinking about. Thanks to anyone that can remove the veil for me!
I posted this orignally in the pension forum but have been advised to post here as well.
I am just coming to the end of a 22 year Army career and with it am entitled to my pension of c10K/annum. I have also been extremely lucky that i have been offered a job working overseas (oil industry) for a US company. The job pays well (40% tax bracket not including my army pension) and has a contributory pension scheme too (matched by the employer up to 10% of salary). I will be out of the country for 6 months in every year but have had it pointed out to me that i will not qualify for seafarers allowance as oil ships do not count as 'ships'!
I want to start this job with my tax affairs in order rather than jiggle them afterwards and would appreciate a less naive eye than my own!! My thoughts are as follows:
1. As an employee of a foreign employer i would not be taxed at source but will instead put in a Self Assessment form each year even though, as i am not self employed, i would not be able to claim expenses to offset my tax liability.
2. Any pension contributions i make i am entitled to a tax rebate for so would be best advised to put as much as possible into the pension scheme.
Beyond that i am stuck! Are those 2 assumptions correct? Also, what other considerations should i be thinking about. Thanks to anyone that can remove the veil for me!
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http://www.hmrc.gov.uk/international/special-jobs.htm
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