How do you avoid the UK tax man???????

Anyone who doesn't pay the full amount of maintenance they should for their child, or who tries to get out of it, isn't fit to be called a parent, is irrespondible and a disgrace and has let their child down.

Can you avoid paying your child maintenance to a child in the UK when you are a UK citizen with Permanent Residency of Qatar and employed with UAE employer? any help would be greatly appreciated...

Agreed RP. But my point was, the reason the majority of us are here (or in Iraq, or where ever) is because we can earn more money than at home, so majnoon shouldn't be surprised that we're earning a large sum. And it's important to remember that earnings are all relative to what we earn back home and the cost of our lifestyle back home.

To say the $87k is a lot means nothing unless you put it into context. $5k is a lot to some people, because they earn far less than that back home and the cost of their lifestyle is low.

Tallg

Is all relative to the zone that you are working on.

In Qatar is pennies compare to Iraq, Africa or Afghanistan.

Is all about the status; Single people fall into a higher tax bracket. Married couples have lesser taxes and a better return in cash. It all depends on who claims the kids or both parents are working steady and combine their salaries into one. Claiming one person. That is the job of the tax preparer to figure out the best venue.

TAXES ARE THE DEVILS TRAP!

The problem is I think you’re an overeducated, 27-year-old virgin who holds the hands of superstitious old women and promises them eternity.

Honestly, i got audit once and It was not a good feeling to be sitting in front of the IRS woman, even do, I came out clean.

That is why, I don't play with the fire of IRS. There is way too much at stake to lose in money penalties.

Unfortunately some people don't care much about it.

I always hire a CPA lawyer with a bonding license to file my taxes and all the correct paperwork and original receipts and statements are at hand.

Just because you work overseas for a foreign company you are not off the hook of the IRS.

One time, Believe it or not, I had too paid federal taxes and state taxes on my unemployment benefits at the end of the year! Nothing is free.....

The problem is I think you’re an overeducated, 27-year-old virgin who holds the hands of superstitious old women and promises them eternity.

Majnoon - of course Americans out here are earning good money. That's why they're here!

I believe the US tax man would take a very different view. I know a lot of Americans do not declare everything they should and just because they get away with it doesn't mean its correct....

Majnoon Ajnabi

any US citizens on here are paying taxes means that they are making very good money because you don't hit tax status until exceeding $87+k after figuring all your deductions,

This is how it works:

Correction on the housing allowance:

If the company is paying for your housing directly to the landlord, you don't have to report anything about housing monies.

Unless, the housing money is included in your paycheck, then you have to reported it, all together with the rest.

The problem is I think you’re an overeducated, 27-year-old virgin who holds the hands of superstitious old women and promises them eternity.

I would suggest you get professional advice. You will almost certainly want an offshore account in Isle of man or Channel Islands. I have used used Lloyds, Standard Chartered and HSBC in the past, and you can download the application forms from their web sites. The advantages of an offshore account include that they do not report to ANY tax authority, and they do not deduct withholding tax. These organisations will also put you right in terms of the other regs affecting your "non-resident for tax purposes" status.

Its not difficult and its not "dodgey."

The Americans have to declare everything received included accommodation. So your company provides you a villa and it costs 18,000 a month. That's $59,000 before you even consider your salary....

any US citizens on here are paying taxes means that they are making very good money because you don't hit tax status until exceeding $87+k after figuring all your deductions, so if you don't want to pay taxes take a smaller salary. Typical U.S. people that complain it costs them money to work overtime duh!

“A lot of the people who keep a gun at home for safety are the same ones who refuse to wear a seat belt”

Just send the money as a gift. That's tax free

Don't listen to me, I still have a 5400 pound overdraft after 3 years!

Agreed, and I know nothing about buying shares myself. It's one done through Friends Provident, who setup different portfolios of shares with different risks. I'm doing it in place of a pension, as I'm now self-employed.

True it has grown steadily over time but you would have to be very wise to make a good buy now on the stock market. Having the ability to spot those which are a long term bargain and those that will collapse at a later date is not easy. As I said before Im not that knowledgable of finances so shall settle with the long term investment in a house. Thanks again for ur advice on avoiding the taxman

Yes, but what will your house be worth? But then that may not be a concern.

Regarding stocks and shares; I'm investing over a long period (25 years+), so in theory the shares I'm buying cheaply now cover the loss in shares I'd bought previously, and you rely and the fact that historically the market has consistently grown at a steady rate. I wouldn't consider buying shares for short term gains at the moment.

tallg my eventual plan is to just buy a house outright without a mortgage. Sure those stocks are very cheap at the mo but are they going to disappear all together in the next year. At least I know the house I buy will still be standing...or at least I hope so

freedom is free.....

Or you could stick some of your savings in stocks and shares like I have. That worked out a treat!

At least the ones I'm buying now a cheap. Should all work out in the long term.

My advice before coming here was that if you put all your savings offshore as you go along, if they change the rules, (and I am surprised Brown hasn't) those savings will always be safe from a sudden tax charge.

I seem to recall there are two statuses - "Non-resident" and "Normally Non-resident"

I was initially on the wrong type and ended up paying tax when I didn't need to. The tax office acknowleged this fact to me and change my status and refunded tax paid. The also wrote to say something on the lines of "You will not here from us again until you notify us you are back in UK"!!!

Please bear in mind though ... this was over 15 years ago ;o)

A bank account in the Isle of Man or Jersey doesnt charge u interest on ur savings am I right? Is that the main reason for opening one...? sorry guys Im not that clued up on finances and prefer to keep as much of my dough as poss without sharing it with the tax man. Thanks for all ur advice

Grrrrrrrrr.......

Mandi

lol mandi. I love bringing up my tax free status when around American friends.

You can't imagine the loathing with which I - a US resident - am reading your posts. Thanks, I think I'll go slit my wrists now. And then pay my full share of taxes, federal and state. Cyanide, anyone?

Mandi

We have a Platinum account with a monthly charge, it's cheaper that way.

Lloyds TSB charge us a few pounds and we pay 30QR this end. It's nothing though compared to the convenience.

DohaBank let you do a direct debit on payday.

Is western union cheaper than transferring via bank account? Ive heard of extra charges the banks add on when you send through them. Especially the UK banks

I haven't had to pay any tax in 3 years. I am not just here for the money but derive a great deal of pleasure from depriving the current Government of my money.

Yes, like I said above you will be treated as non-resident from the day you leave, but if you then subsequently don't stay out of the country for a complete tax year you'll have to repay any tax you haven't paid.

Really? I'm paying no tax, and am classed as a non UK citizen and I only moved in October - I sent off all the forms and they said it was ok, and I just make voluntary contributions now? Eek... have I balls this up?

Best way to send money back is to open an offshore account in IOM via a UK bank. You have to have a certain amount of deposit to do this though. I have not got round to it yet and for the last 3 years have been transferring 2,000GBP a month to my UK Lloyds TSB via DohaBank with no hassle. It takes about 24 hours to reach the UK in usual circumstances. As for non resident status of the UK, it's my pleasure!

macliam - no idea, I get paid in the UK, not Qatar.

hesa - to qualify as a non-resident you must be out of the UK for a complete tax year, though within that year you can visit the UK for 183 days (or 90 days averaged over 4 years I think).

For example, if you left the UK in May 2008 and returned in March 2010 you would not be classed as non-resident for that period as you weren't out of the UK for a complete tax year.

Thanks. One more thing then... whats the best way of sending my money home? Is it as a direct transfer from my Qatari bank to UK bank account or are companies like western union better in terms of exchange rates and additional charges??

tallg - you're a wee bit wrong. You don't have to be out for an entire tax year, you have to be out of the country for 183 days of a tax year. Macliam - have sent you a PM with the relevant websites!!

Just to reiterate - you don't have to wait til april to become non-resident and start sending money home. When you fill that form in you say what day you left the uk and you're treated as non-resident from that date, and hence don't have to pay tax from that date.

You can declare yourself non-resident from the day you left the UK. That should mean you don't have to pay tax on what you send home (though I'm not an expert).

The form is here; http://www.hmrc.gov.uk/cnr/p85_p85s.htm

You may still be asked to do a tax return come april, in which case you'll need to tick the box for Split Year Treatment. I recommend TaxCalc software for doing your tax return as it makes it very easy and can actually save you some money (e.g. it offsets UK bank interest tax against your personal allowance - something I wasn't aware of).

I seriously suggest you do a search for non-residency on the hmrc website as it contains lots of information.

Thanx for ur post. I dont mind not going back for more than 90 days a year. My plan is to actually do at least 3 years out here. I would appreciate it if u cud PM the form, Thanx. Can I declare myself as a non UK resident as from this tax year in April? Then I can send as much home as I wish without being taxed as long as I dont go back for more than 90 days?

You have to become a non-resident. To qualify for this you have to be out of the country for a complete tax year (april to april), but you can claim non-residency prior to completing that year just by filling in a form from the www.hmrc.gov.uk website.

However, if you claim non-residency and then subsequently don't stay out of the UK for a complete tax year then you'll have to pay back any tax you owe.

The HMRC website contains lots of information for non-residents. You should definitely have a look.

Basically, there is a form on the Inland revenue site, you need to fill it in and send them back, but if you are only out here temporarily, then you may still have to pay tax. There are rules, like you are not allowed to be back in the uk for more than 90 days a year, so for last year you would have been in the uk for more than 90 days and so you still have to pay tax.

I could see if i can find the form and PM it to you?