advice re working in Hong Kong

mhoc

I wondered if anyone had any practical advice regarding working in Hong Kong

My youngest son might be able to get a 2 year contract in Hong Kong. At the moment he is on a short 6 month contract, due back in late December. He has accommodation on site and the company are paying for his health insurance.
Its the same company he works for in the Uk as in HK.

we need advice on working visas, paying income tax, etc.

HK organised his visa for this contract but we don't know how it will be extended, if its as simple as just extending it - if it can be done out in HK as this one was. or if he has to do it himself for the 2 year contract or how much it will cost.

HMRC are sending him a self assessment tax form to complete next year for 2015/2016 - he will have been in the Uk working and paying tax this year more than he has been out in HK so he is still Uk resident.

also how and if he needs to pay national insurance while he is away as eventually he will be back in the UK.

I am not sure how long he will be back in the UK in 2016 if this goes ahead

mustang121

If he is currently employed by the company in the UK, then shouldn't the Finance / Account / H.R departments be the best people to advice and sort this out for him?


Additionally, I do not believe he has to pay taxes. Don't quote me on this as I'm sure there are strict rules, but I'm fairly certain that if an UK Employee is working overseas then they are exempt from paying tax (their not exactly using UK public services).


One of attractions for companies to find employees willing to work internationally, away from friends and family, is the benefit of working tax free.

Carl31

mustang121 wrote: »

If he is currently employed by the company in the UK, then shouldn't the Finance / Account / H.R departments be the best people to advice and sort this out for him?


Additionally, I do not believe he has to pay taxes. Don't quote me on this as I'm sure there are strict rules, but I'm fairly certain that if an UK Employee is working overseas then they are exempt from paying tax (their not exactly using UK public services).


One of attractions for companies to find employees willing to work internationally, away from friends and family, is the benefit of working tax free.

Yes correct. Working abroad temporarily means he would have a temporary non resident status (up to 5 years), and his overseas earnings would be exempt from UK income tax. He may be liable under the local jurisdiction though, i am not familiar with Hong Kong tax rules on temporary residents

He needs to be careful with return visits however. If he returns too frequently, or spends long periods returning to the UK, he could be deemed to not meet the status criteria, and find himself with a tax bill

mhoc

OK, so that makes things slightly clearer, being temporary non resident.

at the moment the original plan is that he will be back working with the UK company at the start of January but if this goes ahead then I don't know how long he will working and living in the Uk before going out again.

so his temp non residence would start from then - the start date of the new contract???

If it does go ahead I doubt very much if he would be back in the 2 years - the flights are too expensive. The cheapest flights need 2 or 3 changes and take up to 24 hours.

He is not a big earner but out in HK his money goes further.

I seem to think he can pay a voluntary national insurance stamp - not sure about this.

He is also opted into the pension scheme in the UK, another thing we need to check.

as you can tell he is right at the start of the process so we are still thinking about the implications - no decision made yet.

getmore4less

If he is out there working, should be talking to other expats.

HK UK return can be quite cheap keep an eye on holiday pirates