Qatar / UK Tax
Hey guys
i've been offered some very interesting work in Qatar however, I am obviously concerned at the tax implications - im also looking to be there for 18months.
Using google i've discovered there has been a "new" agreement put in place in 2009/2010, what does that mean as an individual? I don't speak finance or tax so I have no idea what most of the info means
So, any accounting boffins/ex-pats out there might be able to explain it a little please?
You can go non-tax status from the day you leave the UK by completing a Form P85. This means that you are not liable to pay tax from the day you leave the UK. On permanent return to the UK you complete a Form P86 which renders you liable for tax form the day you return. Not to re-register is an offence.
However there are certain basic rules.
You are allowed back to the UK for a maximum of 186 days in a single year or an average of 91 days per year over 3 years. You must also be out of the UK for a single full tax year (6Apr to 5Apr) before returning to the UK permanently otherwise you will be liable for tax on any earnings.
This is the thrust of it but there are other rules regarding qualifying criteria for NT status in the first place. All the information you need is on the HMRC website.
The tax office that deals with ex-pats is located in Salford Nr Manchester and I have always found them very helpful for advice by email or telephone.
If you want the direct dial number send me a private message here and I will send you it.
As a side note you should make arrangements with the NI contributions office to maintain your right to UK National Pension and use of NHS etc. Details of how to do this are on the HMRC website.
As far as I am aware, there is a tax treaty between the UK and Qatar but to avoid paying the tax, you must not be in the UK for more than 91 days a year. If you can, have a look on direct.gov.org and have a look at that and it will tell you all the rules and implications etc.
Thanks :)
So I guess the question still stands then. As a double no-taxation agreement came into affect 2010(?) does that mean as i've paid tax (even though its 0%) in Qatar, I can take the money back to the UK without fear of a double tax?
no dude..I was just joking...about "interesting work". ...anyway there is zero tax on your income.only business establishments pay tax on the overall profits they make yearly!( some 10%) but once you take the cash home what happens I wont know.
That goes against everything i've been told i.e. 0% in Qatar and with the mutual agreement, I *think* it will stay like that when I take it back to the UK.
Interesting work ????....tax will be anywer between 35-45%. depends on your earnings per day!!!
To understand the agreement you only need to speak history & geography.