Is tax free really tax free?

philg77

I'm not sure if this is the right place to post but here goes.

I have recently been offered an expat job in Oman, one of the main benefits of which is the tax free salary. I have heard, however, that if I go in the middle of a tax year (so anytime really other than April 5th), I am liable to pay UK income tax for the remainder of that tax year.

Can anyone confirm this? This will have a massive bearing on my decision as I would wait towards the end of the tax year before going over if this is the case.

Thanks.

GetRealBabe

Hi

Have you read this: http://www.hmrc.gov.uk/payerti/employee/changes/work-abroad.htm

Any help?

philg77

Hi,

Thanks for your reply, I did read have a read of this but the way I read it was that it applies to people working for an existing employer moving within the same company to work abroad.

I probably didn't say this in my original post but it would be a new job for me working for a new employer that is based in Oman.

I've got a feeling it will be the same, in that I have to pay tax here unless I get some kind of derogation from HMRC.

Thanks again.

amiehall

It really depends on how long you plan to be working over there when you set off. More than 2 years?

philg77

I would probably be looking to go for around 2 years I think. Why does this make a difference?

amiehall

You need to be away for a period that covers at least one whole uninterrupted tax year to claim any tax relief. The regulation you need to look up is called ESC A11 and it means that (provided you're out the country for long enough) you're only taxed as a UK resident for the portion of the year up until you leave. A similar concession is available the year you return.

philg77

Thanks for your reply Amie. I've been looking at the regulation ESC A11 and it reads to me like it's to do with shares/securities, or am I missing something?

I read somewhere that the rules have changed in the last year in relation to domicile/residency but can't find what these changes mean.

terra_ferma

I know this is probably not the case, but just wanted to mention that there are scams going around offering fake jobs abroad. Someone I know was offered a job in Ireland, and asked to pay £1000 costs (luckily although he's naive, he's not THAT naive).
Just mentioning for the benefits of other people as well

amiehall

I presume you have read all this. ESC A11 is specifically relevant to your tax in years you leave/enter the UK

http://www.hmrc.gov.uk/international/leave-uk.htm